iBanks Market Cap Tumble: $87B
Wild table via the UK Telegraph of what they call "lending banks" results have been relative to the recent sub-prime woes (as of yesterday's close).
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Note they do not include entities like Citibank or UBS or Lehman Brothers or Lazard Freres.
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Source:
$43bn of deals pulled in a fortnight
James Quinn
UK Telegraph, 1:04am BST 03/08/2007 http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/03/cndebt103.xml
Friday, August 03, 2007 | 10:00 AM | Permalink
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» Fun with Mortgages from Zeroization
The Big Picture (great blog) sums up the story of the subprime meltdown very nicely in this post. Check out the nice graphs of Q2 delinquency rates and where they are occurring. All told, it had a troubling (though deserved) effect on investment bank s... [Read More]
Tracked on Aug 4, 2007 4:11:41 PM
Comments
Someone should forward that chart to Biderman since no bank is going to loose any money on sub-prime fear..........
Ciao
MS
Posted by: Michael Schumacher | Aug 3, 2007 10:13:06 AM
yeah but what goes unnoticed is all the hundreds of billions they increased in 05, 06, and 07. Perspective is important.
Posted by: August Pingpanck | Aug 3, 2007 10:52:24 AM
Conversely, so is timing.
In theory, if one was wise, one would have ridden up the wave to near the crest, and now would be out to let them crash (and who knows how low or not they may go), only to hop back on again at that point.
No sense in incurring losses you don't need to take. Any question of value is always time-frame dependent.
Would I want to have owned BSC from five years ago until today? Absolutely.
Would I want to have owned BSC from six months ago until today? Not so much...
It's the people who bought in at the peak who are getting burned.
Posted by: AD | Aug 3, 2007 11:06:51 AM
Since I don't live my life like a trader, I don't mind this pullback. I consider it an opportunity to start putting cash to work. WM had a great quarter and has lost 25% of its share price since and increased their dividend to what's now 6%. What's not to like for the long-term?
Posted by: Andy | Aug 3, 2007 11:09:29 AM
I would like to see the bonuses handed out earlier this year for each of these as well.
Posted by: Red Pill | Aug 3, 2007 11:16:33 AM
Getting desperate.....
This gets released when BSC is at a 52 week low.
http://www.thestreet.com/s/bear-stearns-bounces-back/newsanalysis/wallstreet/10372208.html
Did they not say virtually the same thing before they decided to make an "orderly exit" from the ABX market.
and then the brainiac over at Morgan Stanley:
Morgan Stanley analyst Betsy Graseck says it is time to "bottom-fish" in the large-cap bank sector, because she believes the market has priced in much of the damage the banks will take on bad debt and related issues.
"We believe the group is already pricing in significant haircuts in the asset classes that are experiencing stress from credit contraction: subprime consumer, highly leveraged consumers and highly leveraged companies," writes Graseck in a note raising the group to attractive from in-line.
In addition, Graseck believes that the economy is not likely headed for a recession, as some observers fear. "While the market is already pricing an easier monetary policy in as soon as December, this could be a catalyst for the shares at a time when sentiment on the group is showing extreme pessimism," she writes.
They just do not get it......these analysts are hoping for the liquidity fairy (ber"hank"e) to bail them out of poor calls and decisions YET again.
BTW when do the lay-offs start on Wall St.
Ciao
MS
Posted by: Michael Schumacher | Aug 3, 2007 1:22:32 PM
Does anyone know of a website similar to LenderImplode.com, but for hedge and similar funds?
Posted by: Mr. Obvious | Aug 3, 2007 3:26:48 PM
Michael
i am not being skeptic just curious.
what is the analysis about PPT participation in today's market? why did they not print another 10-15 billion to keep the party going?
though, i wont be too surprised if FED bails the finance industry right now......since its causing mortgage problems for Joe schmuck..
Posted by: techy | Aug 3, 2007 4:38:36 PM
PPT? I think that is not what we have been seeing lately. The market this week has been the product of the institutions. Witness Weds. and Thursday at almost EXACTLY the same time. Only a few places to get that type of infusion of money that causes what we saw on those days.
The PPT became anaethma last year, I think it's not really part of the equation on the upside......why get involved with that when you can just go over to Hank's place (if you are a broker/dealer) and get the money yourself. Looks good when it's disguised as an auction and then no one can legitimately (without being described as some tin foil hat wearing liberal)debunk it and the media can print things like "11th hour rally" or the like.
As to why they are not defending what they so ceremoniously bloated upwards this week???
I've no idea but I suppose that these institutions had enough time to swing to the short side as the up/down volume of the last few weeks gives a few clues to that.
HAve a good weekend all
even you Fred....
Ciao
MS
Posted by: michael schumacher | Aug 3, 2007 4:55:53 PM
I bought it last year when they said the homebuilders had priced in the damage to come. They were, afterall, down 30%-ish. I would have made a killing if I went with my instincts and gone short. But I wouldn't have made the money for 6 months. I shorted WM in March and am very happy with that. I think they still have more downside since they aren't pricing in recession, just mortgage issues. I think the financial sector right now is where the homebuilders were last summer. They think they've seen the worst, and they are wrong.
Posted by: philip | Aug 3, 2007 5:32:19 PM
