When Russell Sage was asked how to to become wealthy, he replied: "Buy straw hats in the winter." Who was Russell Sage? A Congressman from New York who was also a Wall Street financier who died with $70 million ... in 1906. His (sage) advice still works today, especially for stocks.

If you can buy stocks when they're out of season, or more likely, out of favor, you've got a much better chance of making money than when everyone else is jumping on the band wagon. The key item to remember is this: there are four seasons in a year ... every year, and when you buy straw hats in the winter (on sale no doubt), you know summer will be coming and their price will go higher. There are no seasons in the stock market. A stock out of favor now could stay that way for a long, long, long time. Even go bankrupt. So don't believe that a "cheap" stock now will automatically become valuable later.

Continue reading Comfort Zone Investing: Timing Is Everything

Comfort Zone Investing: Timing Is Everything originally appeared on BloggingStocks on Sat, 18 Sep 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Citigroup Outlook Raised, but J.P. Morgan Preferred

Citigroup Outlook Raised, but J.P. Morgan Preferred originally appeared on BloggingStocks on Mon, 19 Jul 2010 11:30:00 EST. Please see our terms for use of feeds.

Continue reading New FDIC Rule Would Have Asset-Backed Securities Issuers Retain 5% of Risk

New FDIC Rule Would Have Asset-Backed Securities Issuers Retain 5% of Risk originally appeared on BloggingStocks on Tue, 11 May 2010 18:30:00 EST. Please see our terms for use of feeds.

The bank failure rate slowed a bit last week, but the tally remains alarming. Two banks in Georgia and one in Florida hit the skids, bringing the 2010 total to 40.

The victims this time around were McIntosh Commercial Bank in Carrollton, Georgia, Unity National Bank in Cartersville, Georgia, and West Bank of Key West, Florida. Together the three bank failures are expected to cost the FDIC insurance fund approximately $213.6 million.

Continue reading Three More Banks Fail

Three More Banks Fail originally appeared on BloggingStocks on Mon, 29 Mar 2010 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Bank Death Toll Approaches 40

Bank Death Toll Approaches 40 originally appeared on BloggingStocks on Mon, 22 Mar 2010 09:30:00 EST. Please see our terms for use of feeds.

Four more banks bit the dust last week, bringing the total to 30 -- just shy of 75 days into 2010. Regulators closed banks in New York, Florida and Louisiana, representing in aggregate nearly $1.1 billion in assets and a little over a billion dollars in deposits.

Park Avenue Bank in New York was shut down by the FDIC this week. It had $520.1 million in assets and $494.5 million in deposits as of the end of last year. Its deposits will be assumed by Valley National Bank, which is based in Wayne, New Jersey, and it will pay a small premium for them. Valley National also agreed to pick up virtually all of the bank's assets.

Continue reading 75 Days, 30 Bank Failures

75 Days, 30 Bank Failures originally appeared on BloggingStocks on Mon, 15 Mar 2010 10:00:00 EST. Please see our terms for use of feeds.

Three more banks failed last week, bringing 2010's total to 25. Already, this year's bank failures have matched the 2008 full-year total and exceeded the 2007 amount by a factor of greater than eight. The three regional banks that failed last week were in Florida, Illinois and Maryland, with close to a billion dollars in aggregate assets. According to the FDIC, the pace of bank failures could be set to accelerate in the next few months.

Sun American Bank, in Boca Raton, was taken over by the FDIC, with First-Citizens Bank & Trust, based in Raleigh, N.C., assuming the Florida banks assets and almost all of its deposits. Sun American had assets of $535.7 million and $443.5 million in deposits. Since July, First-Citizens has acquired the assets of four failed banks, the others being First Regional Bank of Los Angeles, Venture Ban (Lacey, Wash.) and Temecula Valley Bank (Temecula, Calif.).

Continue reading Bank Failure Tally Hits 25

Bank Failure Tally Hits 25 originally appeared on BloggingStocks on Sun, 07 Mar 2010 10:10:00 EST. Please see our terms for use of feeds.

Not even two months into 2010, the number of banks closed this year has already reached 20, not far behind the full-year result of 25 in 2008 and ahead of the three in 2007. On Friday, four banks were shut down by regulators, carrying forward the momentum from 2009's 140 bank failures. In only one week, the number of bank failures this year spiked 25%.

La Jolla Bank FSB in California was taken over by the Federal Deposit Insurance Corp. It had 10 branches, $3.6 billion in assets and $2.8 billion in deposits. Its deposits and assets were taken over by OneWest Bank in Pasadena in a deal that is expected to cost the insurance fund $882.3 million. OneWest and the FDIC will share the losses on failed bank loans and other assets of approximately $3.3 billion.

Continue reading Bank Failures Surge 25% in One Week

Bank Failures Surge 25% in One Week originally appeared on BloggingStocks on Sun, 21 Feb 2010 09:40:00 EST. Please see our terms for use of feeds.

Continue reading Banks Still Not Providing Enough Credit to Small Businesses

Banks Still Not Providing Enough Credit to Small Businesses originally appeared on BloggingStocks on Fri, 05 Feb 2010 17:40:00 EST. Please see our terms for use of feeds.

After seeing the number of bank failures tick up to 140 last year, there's some slight comfort in seeing the annual total only reach four. The feeling of relief disappears, of course, when you realize that we're only two weeks into 2010. The effects of the late 2008 financial crisis are still with us, as three small banks learned this week -- in Illinois, Minnesota and Utah. As expected, the 2009 trend continues. The Federal Deposit Insurance Corporation's takeover of the banks follows the closure of the much larger Horizon Bank in Bellingham, Wash., the week before.

Continue reading Bank Failures Begin Again

Bank Failures Begin Again originally appeared on BloggingStocks on Sat, 16 Jan 2010 09:40:00 EST. Please see our terms for use of feeds.

Continue reading Investment Banking Unit Pushes JPM to Strong Profit

Investment Banking Unit Pushes JPM to Strong Profit originally appeared on BloggingStocks on Fri, 15 Jan 2010 08:30:00 EST. Please see our terms for use of feeds.

A political issue that's there for the taking; i.e. one that either political party, the Democratic or Republican parties, could win votes on? The need to charter and capitalize new, small/mid-sized banks. (It's an issue that the Tea Party movement could make some hay on, also.)

The financial crisis is over, but the credit squeeze continues, and small and medium-sized businesses have borne a great deal of it, with many still unable to secure the credit they need to expand their operations, despite rising demand.

Continue reading This Decade May Have to Become the Era of New, Small Banks

This Decade May Have to Become the Era of New, Small Banks originally appeared on BloggingStocks on Tue, 12 Jan 2010 13:00:00 EST. Please see our terms for use of feeds.

Best wishes to all and, next to world peace among people, we should hope for the same among world markets.

I have let some time pass before commenting on a recent example of how fragile a world we live in. This past year through a time of greater economic danger, fear and volatility than most of us has experienced in a life time, many people cannot fathom how close we came to the edge of Hades.

Continue reading Serious Money: Dubai Vaporizes $48 Trillion

Serious Money: Dubai Vaporizes $48 Trillion originally appeared on BloggingStocks on Mon, 28 Dec 2009 15:00:00 EST. Please see our terms for use of feeds.

Nobody expected bonus season to be comfortable, even with the financial crisis more than a year in the rear-view mirror. Yet, Goldman Sachs (GS) is getting sued over its compensation package, under which key executives are only compensated in long-term stock. In the latest development, John Mack, CEO of Morgan Stanley (MS), is skipping his bonus for the third year in a row, according to Reuters.

Mack isn't the first banking CEO to go sans bonus this year. Kenneth Lewis, top dog over at Bank of America (BAC) is getting neither a salary nor a bonus for 2009. Both plan to step down at the end of the year, though Mack will stick around Morgan Stanley as chairman. The last time Mack got a bonus was in 2006: he picked up $36.2 million in restricted shares.

Continue reading Morgan Stanley's CEO skips bonus -- again

Morgan Stanley's CEO skips bonus -- again originally appeared on BloggingStocks on Sat, 19 Dec 2009 13:40:00 EST. Please see our terms for use of feeds.

The bank bust tally is up to 131. Republic Federal Bank was the most recent to be shut down by regulators, which happened on Friday, making it the 13th in Florida to fall.

Boca Raton-based 1st United Bank (FUBC) has agreed to pick up its $352.7 million in deposits and $267.1 million of its $433 million in assets. The FDIC and 1st United are sharing $210.4 million in loans and other assets -- the stuff left over will be held by the FDIC until it is sold. According to the FDIC, this failure will cost the deposit insurance fund $122.6 million.

Continue reading Florida bank brings failure count to 131

Florida bank brings failure count to 131 originally appeared on BloggingStocks on Sun, 13 Dec 2009 11:20:00 EST. Please see our terms for use of feeds.

Continue reading Capital One warrants help chip away TARP obligation

Capital One warrants help chip away TARP obligation originally appeared on BloggingStocks on Sun, 06 Dec 2009 15:40:00 EST. Please see our terms for use of feeds.

In a case of buy low, sell high, Kuwait's sovereign wealth fund just unloaded its $4.1 billion stake in Citigroup (C). In doing so, the fund scored a $1 billion profit -- and a 37% rate of return on its investment -- according to the Kuwait Investment Authority (KIA).

The fund invested in Citigroup in January 2008, before the financial industry came to the brink of collapse last year, but well after the impact of the mortgage crisis had been identified. The fund also invested $2 billion in Merrill Lynch, which was acquired by Bank of America (BAC) in September 2008.

Continue reading Kuwaiti fund rakes in $1 billion profit on Citigroup sale

Kuwaiti fund rakes in $1 billion profit on Citigroup sale originally appeared on BloggingStocks on Sun, 06 Dec 2009 14:10:00 EST. Please see our terms for use of feeds.

U.S. banking regulators took over six more banks on Friday, bringing the 2009 bank failure tally to 130. So, even with the post-financial crisis situation stabilizing a year later, the continued stream of bank failures serves as a stark reminder that we aren't out of the woods yet. Smaller banks are expected to continue to fail at an higher rate through next year, due in large part to the pressures of deteriorating loans.

Of course, unemployment will continue to be a problem, as it impairs the abilities of borrowers to repay their debts. The squeeze appears to be lightening, as job cuts slowed considerably in November, but the unemployment rate is nonetheless expected to peak next year.

Continue reading Six more banks closed, total hits 130 this year

Six more banks closed, total hits 130 this year originally appeared on BloggingStocks on Sun, 06 Dec 2009 10:10:00 EST. Please see our terms for use of feeds.

The federal government is a step closer to having vast powers over financial services firms. The U.S. House of Representatives Financial Services Committee voted on Wednesday to give regulators the authority to carve up financial firms when economic stability is at stake. The bill would also open up the Federal Reserve to much more congressional oversight. This comes more than a year after firms such as AIG (AIG) and Citigroup (C) needed profound financial intervention to prevent a broad collapse of the global economic system.

Of course, the measure is getting mixed reviews. The Independent Community Bankers of America, a lobbying group for smaller entities, says it will "create a more equitable financial system and hold too-big-to-fail firms accountable for the risks they pose." Meanwhile, the Financial Services Roundtable, which represents larger banks, such as Bank of America (BAC), says it will "stifle creativity and the free-flow of ideas and capital."

Continue reading House votes on risk bill, bank breakup power included

House votes on risk bill, bank breakup power included originally appeared on BloggingStocks on Thu, 03 Dec 2009 11:20:00 EST. Please see our terms for use of feeds.

Continue reading JPMorgan slashes earnings estimates on major banks

JPMorgan slashes earnings estimates on major banks originally appeared on BloggingStocks on Tue, 01 Dec 2009 09:20:00 EST. Please see our terms for use of feeds.