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Bloomberg
Further evidence that the economy is weakening can be seen as Berkshire Hathaway’s (BRK/A) rental furniture unit saw a slowing of demand from business clients in the second quarter.  Businesses are reluctant to invest in growth because of a lack of confidence in the overall economy.  While the Federal Reserve has been extremely loose, the...
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Corporations are issuing debt aggressively taking advantage of these record low interest rates.  JP Morgan (JPM) is taking advantage of their tremendous financial strength and is gaining market share as the number one underwriter.  Because JP Morgan has been able to stay in tact after the “Great Recession” they have benefited greatly as their competitors...
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Euro leaders produced some tangible results over the night through extended discussions.  They agreed to set up a single banking supervisor to oversee the industry, and this will enable funding from the ESM, which takes pressure off the peripheral countries economies that are struggling to raise cash at reasonable prices.  Finance ministers are targeting a...
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Richard Bove of Rochdales Securities is correct in his assertion that people shouldn’t make too much of the trading loss at JP Morgan (JPM).  Yes it is a significant mistake and should never have happened but JP Morgan has $20-$25 Billion in earnings power.  Although I do like JP Morgan here I’m more attracted to...
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I find myself disagreeing reluctantly with one of my favorite investors Michael Price in his assessment of breaking up the big banks.  While I don’t disagree that the value of the banks would increase over the short term, I do believe that increased size allows for certain efficiencies which would be compromised if they were...
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This was an exceptional interview on Bloomberg with Morgan Stanley (MS) CEO James Gorman.  Gorman correctly understands the global nature of the financial industry and the benefits of scale necessary to compete on that global level.  It is extremely obvious that the sum of the parts of these banks are greater than the current market...
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There were positive signs in the data for pending sales of U.S. homes and durable good orders, which are a welcome relief from the recent data which has been quite poor.  There is no doubt that if the U.S. economy is to outperform expectations housing will be a key cog in doing so.  Sentiment amongst...
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This article describes how many of the larger banks are curtailing lending and the regional banks are picking up the slack.  This is a direct result of the Dodd-Frank legislation which has had the effect of reducing lending as banks are forced to horde capital, and shut down formerly profitable business operations.  This is a...
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This article written by Simon Johnson is another in a long line of commentary that is not supported by facts or solutions.  Obviously there is a lot of stress directly stemming from the situation in Europe and it will effect banks.  Currently banks in the United States have some of the highest capital and liquidity...
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Unsurprisingly the market seems to realize that the ratings agencies are simply reflecting the past as opposed to the future.  They were wrong when they gave the banks AAA and AA ratings, and they are wrong with many of them rated BBB even though they are sitting on double the capital that they had in...
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