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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: gladman who wrote (5919)	8/13/2009 8:07:10 AM
From: RockyBalboa	Respond to of 6370

Don´t know specifics on RF particularly how much troubled CRE they have and whether they are adequately reserved. It appears that they are CRE-heavy, with two thirds of its portfolio in commercial loans half of which is CRE. Significant charge-offs in its florida home equity portfolio (3%) and some CRE in the first Q 2009. Like in nearly every other bank its well being depends on further improvements of the credit quality of its portfolio. I used to trade the trio, RF, HBAN, FITB a lot and it seems FITB did best, so far. Today´s gap in all banks makes decisions harder. It is difficult to buy the gap up (which fades already a bit since FAS deflates from 77 to below 75 in a matter of 2 hours).

To: gladman who wrote (5919)	8/19/2009 8:45:20 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 6370

Piggybacking a fish could be dangerous. Begs the question who is really piggy-backing. Found this, and it means that in a less friendly environment RF is zip. >>>>>>>>> Inquiring minds are reading Next Bubble to Burst Is Banks’ Big Loan Values, an excellent article by Bloomberg columnist Jonathan Weil. Check out the footnotes to Regions Financial Corp.’s (RF) latest quarterly report, and you’ll see a remarkable disclosure. There, in an easy-to-read chart, the company divulged that the loans on its books as of June 30 were worth $22.8 billion less than what its balance sheet said. The Birmingham, Alabama-based bank’s shareholder equity, by comparison, was just $18.7 billion. So, if it weren’t for the inflated loan values, Regions’ equity would be less than zero. Meanwhile, the government continues to classify Regions as “well capitalized.” While Regions may be an extreme example of inflated loan values, it’s not unique.