DSX Lover

Why Private Equity Shops Are Recapitalizing Banks

Yes they have enough capital Voice of Reason. They aren't growing assets, so they don't need extra capital. They can survive fine with what they have because they are not going to take a charge off of more than 2.5% on all earning assets, and they have already put 2.23% of Loans on Reserves. Now giving it away to P/E is joke, if they want in they should pay accordingly to what the risk is. Paying for convertible stock convertible at $5, is no RISK at all, Even a Monkey would take that.

Why Private Equity Shops Are Recapitalizing Banks

Banks should be re-capitalized at the right price. There's no market panic, and no guts from Private Equity for being early. This is just simple stupidity by the part of Management in these large financial institutions, and irresponsible behavior, so that they can maintain their Jobs. The Deal with WM, was horrible, and its all the fault of management for relying in just Mortgages. What we're seeing this morning from NCC is a total Disgrace, Current shareholders are better being served through liquidation of the company, or a takeover by JPM rather than accept this offer. What a joke, is becoming the issue of raising capital. Management of NCC and its advisor Goldman Sachs should be ashame. At the close of Q1, NCC had $13.2 Billion in Equity, and $20.61 of Book Value, . The Allowance for Loan Losses is over 2.23% of All outstanding Loans at $2.6 Billion, these are loans written off the Books, that are still earning money. Loans past due 90 even decreased by 100 Million at end of Q1 from Q4 to $1.8 billion, from $1.9 Billion, which is 1.6% of all Loans, reflecting that the worst credit conditions have peaked. With 8.5% of Capital over total assets. and 6.65% Tier 1 capital, NCC has more than enough capital to be above the "the well-capitalized" threshold of 6%, and with the worst 2 quarters in the the Bank's history, there are no signs, that it will fall below 6%. With 13.2 Billion equity, and a good Loan Loss allowance that has taken care for possible deteriorating conditions. Why does it need to raise $7 Billion at $5 dollars (.25 of existing Book Value), $6.3 Billion of those on Preferred Stock convertible at $5 (well below market price) at what interest? There's no risk here for Private equity, and these shows management's irresponsability and stupidity. All Directors and Managers of NCC should be fired, and NCC should be allowed to be taken over by anyone in an open auction, instead of these joke from Corsair Capital.

My Last Word on Our National City Discussion

Three words on National City BUY BUY BUY.

National City Just a Victim of Its Industry

HBCK great employment of Capital, keep buying back stock at 29 P/E.

National City Just a Victim of Its Industry

HCBK-overpriced, horrible ROE, excessive conservatism. 29.8 P/E
SHORT HCBK go long any other of the below book banks, you will become millionare, its not too hard to figure it out.

National City Just a Victim of Its Industry

I agree with most of this issues except for the Buyback.NCC is selling for .39 cents on Book. Where do you Townsend gets 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.

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.

Financial Stocks to Buy When the Market Reverses

UYG is the Double Long ETF