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Big banks, from the article.........."Should the economy get stronger, interest rates should rise along with loan demand — both good things for banks."
>>>So, in the next recovery, eh??? Okay. 'Course, the big banks are still sucking on the Federal teat of being paid to hold "excess reserves". Me thinks the Federal, still having this part of the plan in place, still does not really feel good about the big banks. And what are the big banks allowed to do with these excess reserves??? Only keep the money on the books so that the balance sheet appears to be more happy?
From the article: "Smaller, regional banks have something else going for them: merger-and-acquisition activity."
>>>Likely still some money to be made in this area.
The economy, regular folks, businesses.......still a lot of debt hanging around out there in "magic land". Let it ride seems to be the thought of the day; till the next problem(s) arises.
"Let's start with the big banks. On Thursday, Ally Bank — once known as the General Motors Acceptance Corporation — went public with a $2.38 billion IPO. Proceeds went to the U.S. Treasury, which spent $16.2 billion bailing out GMAC in the wake of the financial crisis. The Treasury, which once owned as much as 74% of the company, now owns about 17%."
LOL. Happy talk about how a terrible financial company that had to be bailed out (and was rebranded with a cheery, cheesy name - "Hey taxpayers, we're your Ally - especially when we need to get bailed the bleep out again.") was able to be dressed up and sold to a market that....didn't much seem to care for the IPO.
"JPMorgan Chase (JPM), for example, has a 2.7% dividend yield, and sells for 1.1% of book value per share."
And hey, after today's selloff after JPM earnings weren't taken well, it's even cheaper.
I continue to like Financial Technology, which is dominated by two similarly named companies, FIS (FIS) and Fiserv (FISV). Necessary products and services for the industry and two names dominate the sector.
Comments
Big banks, from the article.........."Should the economy get stronger, interest rates should rise along with loan demand — both good things for banks."
>>>So, in the next recovery, eh??? Okay. 'Course, the big banks are still sucking on the Federal teat of being paid to hold "excess reserves". Me thinks the Federal, still having this part of the plan in place, still does not really feel good about the big banks. And what are the big banks allowed to do with these excess reserves??? Only keep the money on the books so that the balance sheet appears to be more happy?
From the article: "Smaller, regional banks have something else going for them: merger-and-acquisition activity."
>>>Likely still some money to be made in this area.
The economy, regular folks, businesses.......still a lot of debt hanging around out there in "magic land". Let it ride seems to be the thought of the day; till the next problem(s) arises.
Me 2 cents worth.
Catch
LOL. Happy talk about how a terrible financial company that had to be bailed out (and was rebranded with a cheery, cheesy name - "Hey taxpayers, we're your Ally - especially when we need to get bailed the bleep out again.") was able to be dressed up and sold to a market that....didn't much seem to care for the IPO.
"JPMorgan Chase (JPM), for example, has a 2.7% dividend yield, and sells for 1.1% of book value per share."
And hey, after today's selloff after JPM earnings weren't taken well, it's even cheaper.
I continue to like Financial Technology, which is dominated by two similarly named companies, FIS (FIS) and Fiserv (FISV). Necessary products and services for the industry and two names dominate the sector.