Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (34304)	5/2/2009 12:35:14 AM
From: Spekulatius	Read Replies (3) \| Respond to of 78751

Madharry - any idea how to handicap the bank stress results due next week. the delay until Thursday can only mean that the results are not to the liking of the bank chiefs, so they need more time to respond. Though i wonder if the response matters since Geithner and co. already said that they are going to do what they want to do. Bloomberg has an article that said that 6/19 banks did not pass, which ones might that be: FITB, STI, KEY, RF, C, BAC are the losers but who knows/ I think only GS, JPM and MS are home free. The banks that won't pass have a few month to raise capital but how are they going to do that with the government driving the bus? So I guess the government injection/conversion will have to do which means that conversion will occur at the share price at 2/9 minus 10% (estimate of reasonable discount). For BAC that would be 6.3$, C -3.6$, USB 15$, KEY 8.1$. Most of those prices are above todays close. Another aspect to consider is that the Chrysler deal shows that the government does not care to much about claim seniority principles either. This means that the owner of preferreds, Trust preferreds and possibly even debt may have to bring "sacrifices" as well. It's like those George Orwell novels where nobody should consider himself safe.