DSX Lover

National City Blew It

NCC is selling for .39 cents on Book. Where do you get the 6.53% Tier one capital, if the Bank had 13.4 Billion in Capital over 150 Billion in assets, thats way more than 6.53%, and it will have a huge profit in Q1, because it has a $406 Million profit for 1/3 of its stake in VISA. The other 2/3 of its stake will be unrealized, and is worth more because VISA shares are up. The Buybacks were stupid, but the dividends were not, all these Banks paying high dividends were paying about 50% of earnings, while growing at lower levels, so those dividends were sustainable, as long as the asset quality did not deteriorate. NCC, FITB, WM, C, WB have had horrible risk management, in the other hand, RF, USB have high dividend yields, and asset qualitiy is still excellent for USB, and manageable for RF, I would like to see when CMA reports on Thursday, how are their assets, because after today's reports of USB, and RF, the credit conditions, are manageable by most financial institutions. NCC is worth more than the $7.5 it closed for yesterday, Is is not the same JUNK as WAMU, NCC has a strong franchise, and corporate clients, unlike WAMU who only has mortgages, as earning assets, and horrible credit risk management.