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The Closing Bell: U.S. Stocks Decline as Consumer, Technology Companies Retreat
Chris Whalen on CNBC: "My gosh, they have been struggling for years, we still haven't seen a change in management. It's really quite incredible to me that the board of Bank of America tolerates this kind of performance from senior management. I really think you need to see a change there." Bill Smead comes up with a disagreement, although it's not much of a case (I think he rambled something about Warren Buffett liking it.)
Whalen again: "We've turned this into a circus where we control dividends and equity market expectations instead of benchmarking safety and soundness, which is what we're supposed to be doing here."
You still have banks in this market that trade significantly under book value. I'll contend that banks in this country have only gotten less transparent and seem to have not learned much from 2008. However, maybe views on the sector change if rates go higher.
Morgan Stanley, Discover and BNY Mellon announcing multi-billion repurchases. Wells Fargo raising dividend. American Express with a dividend boost and large buyback.
Note: despite being known as credit card companies, Discover, Capital One and Amex are effectively considered banks and have to submit capital plans to the Fed. Visa and Mastercard are networks only and therefore do not.
Edited to add: BAC announcing $4B buyback, but dividend maintained at a nickel. Citi ups divi to a nickel from a penny, plus $7B buyback.
Edited to add: JPM with a $6.4B buyback and div raise to 44c. JPM down a bit as buyback and div raises are under expectations.
Citigroup Has Cleanest Stress-Test Pass of Top Wall Street Banks !!!
I guess they cleaned up their act!
Edit/Add: "Bank of America’s revenue and loss models and parts of its internal controls were lacking and need to be resubmitted by Sept. 30, the Fed said Wednesday."
Citigroup Has Cleanest Stress-Test Pass of Top Wall Street Banks !!!
I guess they cleaned up their act!
I don't have any interest in the US banks, but I guess if I did C would probably be the top of the list from the standpoint of their huge credit card business (including the recent Costco win), global reach (I think it's still the most international of the big US banks) and a few other things. However, I still trust it about as far as I can throw it.
Considering the amount of government money that was pumped into these institutions, I'm not surprised at the passing list. Ally is at the top. I wonder why?
I'll agree with you on that. I own Scotiabank (BNS) and largely from the standpoint of valuation (it's gotten obliterated since last Fall along with the Canadian currency) history, yield and other factors (Canada's most international bank, it's a bullion bank, etc.) It's admittedly not my most comfortable or favorite investment (and certainly not the largest), but I'm getting paid a nice yield in the meantime.
As for the difference with currency, BNS shares in Canada vs the US shares over the last year. Interesting look at the same company local shares vs US shares.
With all the scrutiny at BAC and with Brian Moynihan, it is inconceivable that they did not make this plan and attendant processes a priority.
I did see recently that Moynihan took a "pay cut" and that several accountants at the firm were let go/replaced. So, figured something was up.
Still shaking my head.
I wonder if the animosity between BAC and government/Fed is part of the reason for this failure. Suspect there is lots to be bitter about on both sides here, but at the end of the day, if that animosity continues, it may be impossible for BAC to score well. Leadership would have to change, which is a shame, 'cause I've liked Moynihan. But he's in the barrel right now and I hope he will implement the changes necessary to avoid failure like this in future.
Comments
Whalen again: "We've turned this into a circus where we control dividends and equity market expectations instead of benchmarking safety and soundness, which is what we're supposed to be doing here."
You still have banks in this market that trade significantly under book value. I'll contend that banks in this country have only gotten less transparent and seem to have not learned much from 2008. However, maybe views on the sector change if rates go higher.
Morgan Stanley, Discover and BNY Mellon announcing multi-billion repurchases. Wells Fargo raising dividend. American Express with a dividend boost and large buyback.
Note: despite being known as credit card companies, Discover, Capital One and Amex are effectively considered banks and have to submit capital plans to the Fed. Visa and Mastercard are networks only and therefore do not.
Edited to add: BAC announcing $4B buyback, but dividend maintained at a nickel. Citi ups divi to a nickel from a penny, plus $7B buyback.
Edited to add: JPM with a $6.4B buyback and div raise to 44c. JPM down a bit as buyback and div raises are under expectations.
Regards,
Ted
http://www.bloomberg.com/news/articles/2015-03-11/citigroup-has-cleanest-stress-test-pass-of-top-wall-street-banks
Citigroup Has Cleanest Stress-Test Pass of Top Wall Street Banks !!!
I guess they cleaned up their act!
Edit/Add: "Bank of America’s revenue and loss models and parts of its internal controls were lacking and need to be resubmitted by Sept. 30, the Fed said Wednesday."
I don't trust any of them.
As for the difference with currency, BNS shares in Canada vs the US shares over the last year. Interesting look at the same company local shares vs US shares.
http://finance.yahoo.com/echarts?s=BNS+Interactive#{"range":"1y","scale":"linear","comparisons":{"BNS.TO":{"color":"#cc0000","weight":1}}}
I still like FIS as an alternate play on banks as it provides financial tech, but that company is expensive fundamentally.
I'm still stunned.
With all the scrutiny at BAC and with Brian Moynihan, it is inconceivable that they did not make this plan and attendant processes a priority.
I did see recently that Moynihan took a "pay cut" and that several accountants at the firm were let go/replaced. So, figured something was up.
Still shaking my head.
I wonder if the animosity between BAC and government/Fed is part of the reason for this failure. Suspect there is lots to be bitter about on both sides here, but at the end of the day, if that animosity continues, it may be impossible for BAC to score well. Leadership would have to change, which is a shame, 'cause I've liked Moynihan. But he's in the barrel right now and I hope he will implement the changes necessary to avoid failure like this in future.
Funny thing is, this one is procedural!
Time for a strong drink.