District Banker

Wells Fargo: Please Dilute Shareholders and Repay TARP Now!

oh - you're one of those EPS bank stock investors that has gotten mowed over in the last 2+ years.

don't worry about the balance sheet - those toxic assets won't come back to bite you!

Wells Fargo: Please Dilute Shareholders and Repay TARP Now!

What dilution are you talking about?! WFC is trading well above TBV, and thus any issuance would be ACCRETIVE to book value. Yes, today's shareholders would own a smaller percentage of Wells, but it would be a smaller piece of a larger pie.

Do you know what would be dilutive? REPURCHASING SHARES (contrary to your suggestion). This is basic finance, and you shouldn't be posting if you don't understand it.

Five Midget Banks I'm Watching

I realize that you post a caveat saying, "I have not done enough work on these 5 names..." - but how could you post this article without a single piece of fundamental analysis??

The closest piece of relevant info you posted is P/Book - which no bank investors look at (we all look at P/Tangible Book). If you have to ask the difference, you shouldn't be investing in any financials, and certainly not banks.

On what basis would you say that FITB was the riskiest buy?

Stress Tests: Stressful Enough - And a Waste of Time

"ridiculously overcapitalized"..... you're kidding, right Tom? When is Third Curve Capital coming out?

How TARP Paybacks Expose Weakest Banks

I agree with the main contention of this article - but anyone who didn't already know that BAC and C were two of (if not #1 and #2) weakest banks in the country? If you need the government to tell you which banks are (relatively) strong, and which are at risk of failure, you shouldnt be investing in the sector.

Banks are No Longer Failing

Silly article.

Big banks were failing for different reasons than community banks. The community banks that have failed did so (generally) because they made big bets on real estate in their (confined) market footprint. When things go sour in their local economy, it doesn't take much to drag the bank down. If you don't believe me, ask yourself why we've had clusters of failures in particularly weak geographic areas (GA, FL, etc).

Community banks are no longer failing for two reasons. Either:

1. The government gave them TARP $ to fortify their balance sheets and try to attract deposits or,

2. Because of the tax change regarding NOLs in acquisitions, it is now FAR more attractive to buy a failing franchise than it was prior to the tax code change.

Don't Believe the Lies: Ride the Bank Stocks Bull

You have to be kidding me. Take a look at Tom Brown's 'Second Curve Capital' 13F and tell me there's no conflict of interest in his calling the bottom. He's gotten his face ripped off in the past 12-18 months, and he's trying to salvage what's left of his portfolio. Bring on 'Third Curve Capital....'

How To Buy a Bank (and Other Beaten-Down Stocks)

You really want to pay 2x TBV for HCBK, a company that generates 8% ROTE? Oh, and don't forget that over half of their 1-4 book is purchased (1/3 of which is NOT in NJ, NY, CT). Anyway, enjoy your investment in Interest-Only (they underwrite those), Low Doc/No Doc (yep, they're in those too) mortgages scattered across the country. Their 30 bps of reserves won't cover the losses, but their capital probably will.