Trading Now

Trading Now

Wednesday, July 22, 2009


Morgan Stanley reported a loss of $1.37 a share for the second quarter. Less than estimates. Their losses were larger than expected. MS spent a bundle on Smith Barney with little to show for it thus far.

Wells Fargo reports record net income of $3.17 billion, up 81% from a year ago. Results were better than expected. Their mortgage business went through the roof. But stock still down due to fear that credit losses will rise, mortgage loan losses are high.

US Bancorp profit also falls misses estimates.

SunTrust still suffering and not likely to survive.

KeyCorp also posts losses.

*and this after S&P changes their tune on CRE
Banks face difficulties as commercial loans sour
CIT Group has been in the spotlight as it neared collapse before securing financing from its bondholders. The lender to small businesses is not alone, but its struggles highlight problems in the commercial-loan market. Souring commercial loans are wreaking havoc on banks of all sizes. From JPMorgan Chase to Sterling Bancshares, banks are dealing with issues related to commercial lending. (7/22)

*all they did was buy some time, and what a cost for time!
CIT faces high fee, interest rate with bondholders' loan
Terms of CIT Group's rescue gave bondholders of the business lender an upfront fee of $100 million on debt backed by collateral worth five times as much as the loan, analysts said. "The terms are egregious," said Dwayne Moyers, chief investment officer at SMH Capital Advisors. "They ripped the faces off everyone with these terms." Bloomberg (22 Jul.)

Money pumped into financial system not reaching broader economy
Central banks worldwide have frantically poured money into the financial system to cope with the credit crunch, but that liquidity does not appear to be reaching the broader economy. Central bankers are encouraging financial institutions to use the funds to bolster lending, but banks are concerned about their balance sheets and potential losses on loans. Financial Times (tiered subscription model) (21 Jul.)

*let's go already. If banks won't lend then of course the government should ijiots.
Treasury to launch $15B program to boost SBA lending
The Obama administration is moving to step up lending by the Small Business Administration, after the volume dropped sharply last year. The U.S. Treasury is close to launching a $15 billion program that uses money from the Troubled Asset Relief Program to buy SBA loans. The government is also considering increasing the maximum amount businesses can borrow. The Washington Post (22 Jul.)

*Larry's just jealous cause his BlackRock earnings weren't so good.
BlackRock CEO criticizes Wall Street's "luxurious" profit
Wall Street banks are exploiting the lack of competition to raise customers' fees for even the simplest transactions, said Larry Fink, founder and CEO of BlackRock. "They're taking the spread between the bid and the ask, and they're making very luxurious returns," he said. When BlackRock completes its merger with Barclays Global Investors, it will be the world's biggest money manager. Financial Times (tiered subscription model) (22 Jul.)

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