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Barron's Goes Bullish on Banks, Again

My apologies, Mr. Hoffman.

Bank Executive Compensation and the Bailout

This is not a diffucult matter. Hire someone at an agreed upon salary. If he performs well, give him a raise. If he does not, replace him. Where did this onerous system of bonuses and stock options come from? It is the fault of the stockholders. Why is there no outrage? Why are the boards of directors not replaced with people who are responsible? We need activist boards of directors who are responsive to the shareholders and look out for their interests. It seems like the large institutions who hold vast blocks of stock are those best positioned to effect change. In order to force them to do so, we must replace their boards of directors. Of course, now we are back to the large institution that holds vast numbers of shares. I get it: Everyone is screwed.

Barron's Goes Bullish on Banks, Again

I've looked at some of Mr. Hoffman's stock picks in the recent past and was consumed by paroxysims of fear. The opinion expressed in this article produces the same result. There will probably be a further upsurge in banking stocks when BAC reports 'better than expected reduced earnings'. However, there will be a time to come when those who invest now will rue the day.