andruomail

Nine U.S. Bank Stocks for Right Now

I think he was being sarcastic & implying timeshares are in the same bad category as Detroit & N. Korea...


On Nov 06 12:41 PM Simi wrote:

> i would be interested to know- why timeshares? i have been looking
> at those recently too.... would be great to get your input. thanks
>

The Stress Test's Biggest Loser: GMAC

Don't forget all insurance companies and manufacturers that offer warranties, casinos, etc. They are all insolvent too!

Citi Needs Up to $10 Billion in New Capital

Here's my try at the headline vs. story riddle -- the New Capital part means increasing equity by $10 billion, which can't be done with asset sales. So it would be a donation or issuing more Citi preferred stock which is now getting shafted.

Wells Fargo 'Profit' - People Have Short Memories

Not when market value is determined by whether their regulators will put up with their reported lack of profits...


On Apr 09 02:27 PM Larrysyr wrote:

> If a change in accounting rules results in a change in reported profits
> which results in a change in market value, yet the underlying institution
> hasn't changed, haven't we conclusively disproved the efficient market
> hypothesis?

Bank Bailouts and Trust Preferreds: Still Too Much Risk Here

I seem to remember reading that trust preferred was invented so that banks could include a part of them as Tier I capital on the balance sheet and also fully deduct their dividends at the same time as debt payments. It just worked out better for them on the balance sheets & tax forms that way. Trust preferreds are interests in a trust fund made up of one giant bond issued by the parent co. Normal preferreds are shareholders.

Bank Preferreds: Betting at the Apocalypse Casino

Here's that Fed letter from Reilly's articles.

www.federalreserve.gov...

"While not expressly prohibited, BHCs are discouraged from using proceeds of the CPP or other public investment to pay dividends on trust preferred securities or repay debt obligations. If the financial condition of a CPP or other program participant deteriorates significantly, it may be appropriate for that BHC to cease paying dividends on the investment, as well as on trust preferred securities."

Bank Preferreds: Betting at the Apocalypse Casino

It would be funny if you bought a TRuPs, went the maximum 10-year period they can withhold your dividends, paying taxes on the phantom divs all along because the gov't charges tax to you on missed payments, and then they declare bankruptcy. Well, not funny, but I have some of these too. Otherwise it's part of the plan that I can wait a while.

Buffett Likes to Be Early; Don't Rush to Follow

Actually you can invest w/ 10% dividend on GE and GS, or recently could. Ticker GED (GE bonds) and GS-D (preferred stock). Not so much upside but still room for about 30-40% capital appreciation in the long (LONG?) run. Unfortunately a lot of these are financial or utility co's.