Richard Bove
Richard Bove
derivative difficulty earnings event
This event highlights, once again, the difficulty in determining earnings for derivative transactions.
basically businesses company core depending earnings flat nature quarter weak
These brokerages are going to say about the quarter that just ended, 'It never happened,' because basically all of the core businesses you look at were flat or down somewhat, ... Depending on the company and the nature of its earnings base, earnings will be weak to very weak.
critical dominant earnings estimates found hit money needed sandy united
Citigroup needed a lot more earnings to hit its estimates and Sandy just found them in a dominant company. This will give them a foothold in the United States, which is critical because that's where the money is made.
averaged bank country curve earnings increase percent rapid stocks yield
From 1965 to 1982, the yield curve in this country was inverted 47 percent of the time, yet bank earnings averaged a more rapid increase than non-bank earnings. Bank stocks also outperformed the S&P 500, on average, over that period.
accustomed avoid banks earnings happen loan local losses plan prices stock
Midwestern banks are accustomed to shifts in the local economies. They plan for it. However, they do not avoid it. They get hurt. Their loan losses rise. Their earnings tumble and their stock prices are impacted. It will happen again.
equity fixed income market mixed strong
In general, this should be a mixed quarter. Clearly, M&A is strong but the IPO market has slowed down, the equity market is weakening and the fixed income market is limping along.
equity fixed income market mixed strong
In general, this should be a mixed quarter, ... Clearly, M&A is strong but the IPO market has slowed down, the equity market is weakening and the fixed income market is limping along.
core
It's not an international bank. It doesn't have an international reputation. It's not a core business.
couple factors last months pointing strength
Not only are long-term factors pointing to considerable strength, but short-term developments in the last couple of months have been positive.
accounts advisory banks checking city companies competition dealing difficult financial lack offer pricing regional trade universal worry york
It's increasingly difficult to be a regional broker. There's a lack of trade to worry about, yes, but you're also dealing with pricing weakness, competition from the big New York City companies and the universal banks that offer everything from checking accounts to financial advisory services.
america bank cost doubling handling individual lower scale size
You have to have scale in this business. By doubling the size of their credit-card business, Bank of America will lower their cost of handling each individual account.
debt difficult oriented rose stocks throughout
It would have been difficult for Goldman not to do well. Goldman is more oriented to equities than debt, and stocks rose throughout the period.
change coming company people pushed upset
People got all upset because they don't like to see people they know getting pushed out, and they don't know the new people coming in, ... But this company has been underperforming for some time. Significant change is needed.
companies growth next percent piles sitting work
Some firms are projecting 30 percent M&A growth next year, after 36 percent this year. Companies are still sitting on piles of cash, and they'll get to work after the new year.