Derek Syphrett

When Will Fifth Third Bancorp Turn Around?

Macro Guy,

Great point. Ockham "Research" could learn from your perspective as they dont' seem to have much of a clue of which metrics to use in order to value a bank.

That goes for Stewie too... banks don't trade on PE's they trade on multiples of tangible asset value or book value.

I'm in a bit of a rush here at home so I'm going to get right to the point.

Fifth Third is in serious jeopardy of wiping out all shareholder equity. The number of their 100% loan to value (LTV) HELOC's and 90% LTV portfolio is on par with Countrywide Financial and Washington Mutual.

In other words Fifth Third is expensive at any price. It may rally much like Thornburg and Country Wide did before they cratered.