Richard Bove
Richard Bove
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.
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.
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.
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.
card credit division problems
The problems in the credit card division are structural, and kind of long-term,
ability activity bank enormous increase marketing programs utilize
The ability to utilize those marketing programs is going to be enormous for Bank of America. You'll see a significant increase in the bank's credit-card activity now that they have MBNA.
oil prices rising treasury
Treasury prices have been rising and oil is up and down,
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.
banks cycle
But that cycle is over. The banks are going to get squeezed.
home major run
PNC has a major home run here. I don't see a downside.
business cycle lending money ninety percent primary retail
Ninety percent of a retail bank's primary business is lending money on residential real estate, and that cycle is over.
dropped interest lost margin net
Mr. Oken may have lost some credibility with analysts when the bank's net interest margin dropped dramatically,
afford benefit built doctor ford imagine jobs lose next office plans workers
Imagine the doctor who built an office next to a Ford factory. If the workers lose their jobs and those benefit plans disappear, this doctor isn't going to be able to afford his office.
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.