Continue reading UBS Reports Stronger-Than-Expected Second-Quarter Earnings

UBS Reports Stronger-Than-Expected Second-Quarter Earnings originally appeared on BloggingStocks on Tue, 27 Jul 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading American Express is in an uptrend

American Express is in an uptrend originally appeared on BloggingStocks on Mon, 16 Nov 2009 18:00:00 EST. Please see our terms for use of feeds.

A few weeks ago Dodd's Senate banking committee held hearings on the need for regulation of the financial industry. Present were 10 regulators each from one of 10 different regulatory bodies. Dodd commented: "the picture of 10 people was the picture of the problem."

So it seems that we have too many regulators, none of whom were able to individually or collectively deal with the recent financial debacle. Now lawmakers are trying to figure out what to do and how to do it. Obviously there will be fierce power struggles among the existing agencies. Hal Scott, professor at Harvard University said: "its grown topsy turvy since the civil war driven by a reaction of events -- the turf was where industry always wants its own regulator that they can be more comfortable with."

Continue reading Politicians and bank regulators will battle over turf and powers

Politicians and bank regulators will battle over turf and powers originally appeared on BloggingStocks on Fri, 29 May 2009 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Citigroup first quarter earnings preview

Citigroup first quarter earnings preview originally appeared on BloggingStocks on Thu, 16 Apr 2009 16:40:00 EST. Please see our terms for use of feeds.

The shares of Wachovia Corporation (NYSE: WB) opened on a gain of nearly 6% this morning, thanks to a positive note from brokerage firm UBS. The analysts raised their price target on WB from $12.50 to $16, and reiterated a "neutral" rating. However, the stock has wasted no time in whittling its early morning gains, and slipped into negative territory before midday.

Yesterday, Wachovia shares closed lower after Friedman Billings & Ramsey reinitiated coverage at "underperform." No surprise there -- but, in today's session, the equity is declining on what should have been a bullish boost from UBS. In fact, most financial stocks are higher today following speculation on a potential buyout bid for Lehman Brothers (NYSE: LEH). The Select Sector SPDR Financial Fund (NYSE: XLF) is sitting on a gain of more than 2% at last check.

Continue reading Wachovia bounces, then fizzles, on price-target boost

Wachovia bounces, then fizzles, on price-target boost originally appeared on BloggingStocks on Fri, 22 Aug 2008 12:06:00 EST. Please see our terms for use of feeds.

Like its peers, investors have been dour on Evercore Partners Inc. (NYSE: EVR), which is a boutique investment bank. But this week, the firm got some nice support; Mizuho Corporate Bank, Ltd., has agreed to purchase $120 million in senior unsecured notes in Evercore. The deal also includes a warrant to purchase 5,454,545 shares at $22 a piece. In fact, Mizuho has agreed to commit $150 million to Evercore-affiliated funds.

With the credit crunch, it's always good to get a slug of cash. But the Evercore deal is more than just a capital infusion. Basically, the firm will strengthen its existing strategic alliance with Mizuho -- so as to better penetrate the Japanese marketplace. For the most part, cross-border deals are likely to become increasingly important for investment banks.

Actually, Evercore recently announced a strategic alliance with G5 Advisors, which is an investment bank in Sao Paulo. With the strong growth in Brazil, there should be some opportunities to snag assignments.

But such things take time to play out. After all, as seen with Evercore's latest quarterly report, revenues were off 9% to $60.1 million, with profits at $2.1 million, or $0.16 per share.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Evercore Partners gets a $120 million booster originally appeared on BloggingStocks on Thu, 21 Aug 2008 15:57:00 EST. Please see our terms for use of feeds.

Want a classic example of how the real estate slump is affecting not only the construction industry and home owners, but also states and municipalities, as well?

Consider the plight of the nation's largest city, the City of New York.

Wall Street's mortgage losses have ballooned to such a degree that some firms may pay small or no taxes for years, Bloomberg News reported. That's right: no taxes for years.

Rising tax revenues, no more

For much of the current decade, indeed for much of the 1990s as well, the city could count on rising tax revenue from Wall Street firms -- based on increased securities industry business -- as a starting point for the city's budget. Not now: the city, which derives about 20% of its revenue from Wall Street businesses, is projecting a decline in revenue from Wall Street firms -- a contraction that is expected to widen the this year's $1.5 budget deficit in fiscal 2009 to $2.3 billion next year, fiscal 2010, and then to $5.96 billion in fiscal 2011 budget deficit, Bloomberg News reported. The city's budget for fiscal 2009 is $59.1 billion.

The Wall Street recession has put the social service goals of Mayor Michael R. Bloomberg on hold, for the most part. Bloomberg has already asked city department and agency heads to implement a 6.4% spending cut; he will likely ask department heads to identify other cost savings of up to 3%, should revenues continue to come in below projections.

Continue reading All economics is local: Wall Street slump cuts New York City tax revenue

All economics is local: Wall Street slump cuts New York City tax revenue originally appeared on BloggingStocks on Sat, 16 Aug 2008 17:40:00 EST. Please see our terms for use of feeds.

The New York Times reports that S&P held an investment conference yesterday at which leading bankers complained about a rule that requires them to report accurately the value of securities on their books that nobody else wants to own. They complain because this reporting has resulted in $300 billion of losses so far. That cuts into bank earnings and their own bonuses.

Banks naturally don't like having to mark down assets simply because the markets have frozen up. Bob Traficanti, head of accounting policy and deputy comptroller at Citigroup Inc. (NYSE: C), suggested that some assets could be marked as if they would be held until they matured. But this ignores economic reality. If nobody wants to buy an asset, then it has no price. Therefore, for those free marketeers out on Wall Street, the assets have no value at all.

So, as I posted, banks are left trying to make up a value for the assets using computer models on complex spreadsheets. Not surprisingly, different banks use different spreadsheets to value the same kinds of assets. One of the conference participants suggested that regulators should allow banks to get together and compare spreadsheets so they can become more consistent.

Continue reading Why Wall Street's foundations are shaky

Why Wall Street's foundations are shaky originally appeared on BloggingStocks on Fri, 16 May 2008 08:30:00 EST. Please see our terms for use of feeds.

MarketWatch has an interesting article today about homebuilder and financial ETFs. The article, titled "Analysts say financial, builder ETFs signaling buy," interviews a couple of leading analysts who feel that both sectors have bottomed out and are "screaming buys."

Morningstar analyst Sonya Morris said that the Financial Select Sector SPDR (AMEX: XLF) is trading "at least 25% below what Morningstar thinks they are worth."

MarketWatch said in the same article, "Most of the analysts agree that valuations are attractive right now in the financial sector. They said that once the sector gets past the problems with the subprime crisis, probably by the end of this year, the shares could move fast."

I think these analysts are probably right, but that we're probably not through going down in the short term.

Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

Analysts warming up to financial ETFs originally appeared on BloggingStocks on Sun, 03 Feb 2008 11:40:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to the Wall Street Journal's "Heard on the Street," bears believe it may be too early to bargain hunt among financial stocks, as they think there may be more bad news to come after Citigroup Incorporated (NYSE: C) announced it took an $18B write down in Q4.
• Analysts who follow China's telecom sector believe there are a few prime picks, including China Unicom Limited (NYSE: CHU) and China Mobile Limited (NYSE: CHL), but are advising investors to think long term, the Wall Street Journal reported.

• Iron ore talks with China's Baosteel have come to a halt after the company and its peers said price demands from miners BHP Billiton Limited (NYSE: BHP), Rio Tinto PLC (NYSE: RTP) and Companhia Vale do Rio Doce (NYSE: RIO) were "far too high," the Australian Financial Review said.

• MiningMx.com reported that BHP Billiton has reached an "impasse" with South Africa's government over the conversion of the company's exploration leases to new order mining rights.

Newspaper wrap-up: More bad news to come for financial stocks? originally appeared on BloggingStocks on Wed, 16 Jan 2008 08:00:00 EST. Please see our terms for use of feeds.

On Wednesday, the dollar was higher against the world's major currencies, improving 0.21 cents to $1.4684 versus the euro, 0.50 yen to 108.39 versus Japan's yen, and improving 1.35 cents to $1.9596 versus the British pound.

Andrew Resnick, independent currency trader, told BloggingStocks Wednesday that Jen's thesis is plausible.

Continue reading Analyst says dollar could rise despite slow-growth U.S. economy

Analyst says dollar could rise despite slow-growth U.S. economy originally appeared on BloggingStocks on Wed, 09 Jan 2008 11:25:00 EST. Please see our terms for use of feeds.

Continue reading Meg Whitman and Mitt Romney: Oh, the gut wrenching horror of it

Meg Whitman and Mitt Romney: Oh, the gut wrenching horror of it originally appeared on BloggingStocks on Thu, 27 Dec 2007 14:40:00 EST. Please see our terms for use of feeds.

Continue reading Maybe the global economy isn't so global

Maybe the global economy isn't so global originally appeared on BloggingStocks on Wed, 28 Nov 2007 14:26:00 EST. Please see our terms for use of feeds.

Continue reading What to do when your $3 billion worth of Citigroup (C) gets whacked

What to do when your $3 billion worth of Citigroup (C) gets whacked originally appeared on BloggingStocks on Sun, 11 Nov 2007 16:10:00 EST. Please see our terms for use of feeds.

Continue reading Bernanke's bright idea: $1 million federal mortgage insurance

Bernanke's bright idea: $1 million federal mortgage insurance originally appeared on BloggingStocks on Fri, 09 Nov 2007 10:50:00 EST. Please see our terms for use of feeds.

The market keeps falling, they say, because of sub-prime,
But don't worry, keep buying, what was worth a dollar is now worth just a dime;
People with no money to pay, getting a mortgage is no crime,
"Be patient," we tell our nervous clients, your time horizon is for a long-time.

It's Greenspan's fault, the experts say,
No, says Cramer, it's Bernanke's fault all the way;
With no sub-prime exposure, everyone says Large Tech is the magic play,
"Be patient," we tell our nervous clients, don't look at your portfolio each day.

My screen is all red from stocks across the land,
The phones keep ringing, noise like a marching band;
Just give me some suntan lotion and I'll lie in the sand,
"Be patient," we tell our nervous clients, at least you're diversified and own some South African Rand.

A bounce is due, it's in sight,
Dow-theory sell signals you will live in fright;
How many more articles do we need to read about selling in hindsight,
"Be patient," we tell our nervous clients, at the end of the tunnel there is sure to be light.

"So, what should we do" is what I hear,
With hedge fund selling we are all overcome with fear;
Abby Joseph says forget about losses we are in the clear,
"Be patient," we tell our nervous clients, the holidays are coming, with Rudolph and his red-nosed reindeer.

Bargains abound the analysts tell us,
For those who listened, it was like they were run over by a bus;
With severance worth millions Prince and O'Neill ask,"why all the fuss",
"Be patient," we tell our nervous clients, you can always take a second job and be a bit industrious.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com.

The market in rhyme originally appeared on BloggingStocks on Thu, 08 Nov 2007 17:27:00 EST. Please see our terms for use of feeds.

You currently don't have to ask too many Americans about economic conditions in order to get the impression that at least here at home a majority of people sense that economic upheaval is quite underway. The word recession is becoming a bit too commonplace for my taste and I have come across more than a couple references to "the coming pandemic." I myself wouldn't go so far as to predict widespread economic collapse, but I have called the current economic environment a "realignment" and I hold with that assessment.

In light of our volatile economic times I thought it might be a good thing to do a quick piece about risk assessment. I have suggested that now is the time to cut risk to the bone; I still hold to that. The theory is that the greater risk you take the more you should be rewarded for taking that risk. My position is that currently our high risk economic environment will not, except in a few scattered cases, provide adequate return for the risks involved. In my opinion the risk curve is temporarily broken and I suggest holding the bulk of your money away from high risk play.

Continue reading Deciding how much risk to take under current conditions

Deciding how much risk to take under current conditions originally appeared on BloggingStocks on Sun, 16 Sep 2007 17:40:00 EST. Please see our terms for use of feeds.

This post is part of our Money Face-Offs feature. Let us know who you think comes out ahead in this head-to-head match-up, and check out our other Money Face-Off posts.

Did you ever wonder what it would be like to slip into the world of the mega-famous? Right now I'm going to give you a chance to think about that. Imagine that you get to spend your days rubbing elbows with Hollywood's A-list elite. Now here's the angle, imagine that circumstances have caused you to be put in a serious dilemma, and you are now required to choose a female pop-star business partner. You have been given only two choices, either Britney Spears or Lindsay Lohan. The choice is yours and there are multimillions of dollars now riding on your decision.

Continue reading Money Face-Off: Britney Spears vs. Lindsay Lohan

Money Face-Off: Britney Spears vs. Lindsay Lohan originally appeared on BloggingStocks on Sat, 15 Sep 2007 18:10:00 EST. Please see our terms for use of feeds.

In yet another sign of the growing pressure on consumers, retail sales rose 0.3% in August, less than the 0.5% economists have expected. Excluding autos, sales fell 0.4%. This data will likely pressure stocks and underscore the call from Wall Street for the Federal Reserve to cut interest rates at the September 18 meeting of the Federal Open Market Committee. (Update: Consumer confidence remained low in September, further bolstering the case for a rate cut).

There are plenty of economic signs for investors to ponder. The Wall Street Journal is reporting that the amount of borrowing by banks under the Fed's primary credit program surged to $7 billion, the highest level since just after 9-11. Prices for imported goods unexpectedly fell in August because of declines in oil and natural gas prices, providing a temporary check on inflation, according to Bloomberg News.

Continue reading Stocks slide on worse-than-expected retail sales

Stocks slide on worse-than-expected retail sales originally appeared on BloggingStocks on Fri, 14 Sep 2007 09:45:00 EST. Please see our terms for use of feeds.

Option update: Financial sector volatility increases on credit quality originally appeared on BloggingStocks on Fri, 03 Aug 2007 17:50:00 EST. Please see our terms for use of feeds.