dixie

Banking on Bailouts: How Many IndyMacs Are Out There?

I disagree with your premise that there must be a correlation between a.) the downward movement of stock price and b.) weak fundamentals and loan policies which lead to bank failures. This is a big leap to make.

Many of the small community and regional banks I follow in the SE and SW have strong fundamentals but their stock prices have been driven down by the massive write-offs experienced, not by them, but by much larger banks with familiar names. "Guilt by association," i.e just having the name,"bank" in their suffix has been sufficient to drive down share value. The sector is skewed. Babies have been tossed out with the bath water.