Silke

Financials: This Picture's Worth a Thousand Words

Steele's plan to conserve cash (ie...cut all expenses that do not have a direct benefit to one of the core three "banking" businesses) for the remainder of 08, is the crux of the company not having to raise capitol to cover markets.

If the core banking businesses can continue to grow at 12 percent a year (building deposits -retail, getting rid of commercial loan only customers - commercial, and growing the wealth mgmt business) then they can dilute the biggest part of the mortgage loans this year and be on top of their expenses and building back the core banking businesses by the end of Q1 for 2009.

Steele knows that this would position them to A) claim to the street that they have weathered the storm and a higher multiple on valuation is warranted B) be positioned when the higher valuation comes in Q2, to then raise the capitol needed to become a growth company again, and C) get to the higher valuation and/or begin courting international suitors (sell company or partner out a 1/3 share of the company) D) deem the company better off independent and begin raising the dividend to levels competing with banks that have weathered the storm.

Yes, I am bullish on the mid-level banks in the long term (36 mos) and will be adding to my portfolio during the major sell offs (under 12.00) and selling the run ups (17.00+) for the next three quarters.

Up a 151 percent dealing in financials both of the last two quarters by knowing the implications of the macro events, while applying them to the market psychology of the short term.

Reshuffle and deal 'em again!