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BANKS LEAD THE MARKET: "Third-quarter earnings for most banks, particularly the regional lenders, will be extraordinarily negative," Bove sa
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Anonymous Coward |
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full article (without charts and the likes): What is a Friday without the FDIC closing down a bank of five? They closed none this week-end. Yet, they have been getting ready:
FDIC gearing up for big bank failures...
See: FDIC preparing for mega bank failures (w/ video)
Colonial Bank had major issues back then, and just went under on the 1st of October:
FDIC seizes Colonial, to sell assets to BB&T: report
Source: [link to www.execdigital.com]
This is an interesting commentary with a potential conspiracy theory for those still concerned about bank holidays and the likes...
"There were no bank closings tonight, leading me to wonder whether the FDIC’s cash flow situation is more dire than it appears on the surface. The number of banks in financial distress only increases week by week, so the gap in bank closings is the result of administrative forces. Besides the obvious cash flow concerns, delays also result as the FDIC’s limited staff is stretched thin by the growing number of problem banks. Computer system maintenance at FDIC scheduled for this holiday weekend may also be part of the reason why the FDIC was not in action tonight."
Source: [link to shamaniceconomist]
Then we read what may be the FDIC's main concern. The next wave.
October surprise from bank earnings?
Some experts worry results may be much more negative than investors expect
SAN FRANCISCO (MarketWatch) -- Bank stocks surged during the third quarter, but as companies prepare to report results from the period, several industry experts remain concerned.
"We are very early on in this credit cycle," Timothy Long, chief national bank examiner at the Office of the Comptroller of the Currency, said at a recent conference.
"That statement caught everyone by surprise," said Nancy Bush, a veteran bank analyst who attended the conference.
J.P. Morgan Chase kicks off the bank-reporting season on Wednesday....
So, we see that this non-FDIC Friday may be just the calm before the storm... With leading indicators like shipping and the BDI as well as the printing trade all down even further, means we have not really seen a recovery at all yet.
I have long heard traders saying how "the financials" (banks and the likes) lead the stock market, up or down. Well, one last quote from the MarketWatch article above sums it up for me:
"Third-quarter earnings for most banks, particularly the regional lenders, will be extraordinarily negative," Bove said.
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