Regional Banks: Too Small to NOT Fail [View article]
Oh man...you really need to do your homework! The "too big" and "too little" comments are completely in error and miss the primary business drivers that lead to liquidity problems. IT'S LEVERAGE! Bear Sterns was 30:1...I have no idea what Countrywide had going from an actual ratio, but there model was on the high end of mortgage bank leverage.
Please get rid of your short positions so you can move on in your investment life.
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Oh man...you really need to do your homework! The "too big" and "too little" comments are completely in error and miss the primary business drivers that lead to liquidity problems. IT'S LEVERAGE! Bear Sterns was 30:1...I have no idea what Countrywide had going from an actual ratio, but there model was on the high end of mortgage bank leverage.
Apr 24 12:13 pm
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All Comments by Bman »Regional Banks: Too Small to NOT Fail [View article]
Please get rid of your short positions so you can move on in your investment life.