Richard Bove
Richard Bove
banking banks clear compared deal hot interest investment loan quarter rate retail sector tied tougher trading volume
I think it's clear that the banks that are more tied to the retail sector are going to have a much tougher quarter compared to those with diversified positions. The banks in the retail sector have to deal with interest rate compression, loan volume will be tougher, and they don't have the trading or investment banking that are hot now.
competition exchange fewer five gone increase individual last number percent seeing shares stock trading volume york
If you look at volume on the New York Stock Exchange and the Nasdaq over the last five years, there's been no real increase in the number of shares traded. In addition, proprietary trading has gone from 19 percent to 52 percent of that total. So you're seeing more competition for fewer individual trades.
major plus
This transaction, if it occurs, would be a major plus for the company.
clearly either likely sale selection
This selection clearly indicates that Mellon is not for either sale or dismemberment. It is more likely to go on an acquisition binge.
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.
dropped interest lost margin net
Mr. Oken may have lost some credibility with analysts when the bank's net interest margin dropped dramatically,
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.
banks cycle
But that cycle is over. The banks are going to get squeezed.
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.
degree exist lost major morgan people problem stanley top
This problem doesn't exist to the same degree at the other major brokerage firms because they haven't lost top people like Morgan Stanley has.
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.
crisis four given market mortgage near nowhere talking
I think that if we were talking about this kind of mortgage market four years ago, it would be a real crisis for Lehman. But today, given the kind of diversification they've done, it's nowhere near a crisis.
becoming buy capability company fidelity forcing game issue
It is significant because it expands J.P. Morgan's distribution capability without forcing the company to buy anything. It also allows Fidelity into the new issue game without becoming an underwriter.