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Non-Tech : Banks--- Betting on the recovery -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (1240)	11/20/2010 3:19:39 PM
From: tejek	Respond to of 1428

It looks like things are bottoming again in this area after the lapsing of the tax credits program. Seattle and the eastside of the metro are doing better than the rest of the suburbs. King County home sales higher than last month October home sales unexpectedly rose above September's, according to the Northwest Multiple Listing Service, though the total was still well below the same month a year ago. read more.......... seattletimes.nwsource.com

To: Road Walker who wrote (1240)	11/20/2010 3:36:41 PM
From: tejek	Respond to of 1428

Bloomberg News, sent from my iPad. Pimco Said to Seek $1 Billion to Buy Troubled Assets From Banks Nov. 19 (Bloomberg) -- Pacific Investment Management Co., manager of the world’s largest mutual fund, is raising at least $1 billion for a private fund to buy troubled loans from banks divesting assets to meet new rules, said two people briefed on the plans. The Pimco Bravo fund, short for Bank Recapitalization and Value Opportunities, will acquire commercial and residential mortgage loans and other debt, according to a prospective investor who asked not to be named because the capital raising is private. Pimco plans to work with a loan servicer to renegotiate the terms of the acquired debt directly with creditors, the client said. I hope this is a sign that the worst is behind us....if the private sector is willing to buy the bad loans, then they must think the time is drawing near when those bad loans will not be so bad and they can make a profit. Having said that, I have sold all my banks except C and HBAN, both of which have good profits in my IRA. I made money on BAC and lost big on RF which saw three top execs. leave this past week and took a small loss on SNV.

To: Road Walker who wrote (1240)	11/22/2010 2:05:03 PM
From: tejek	Respond to of 1428

U.S. Banks May Face $150 Billion Shortfall By Lauren Tara LaCapra NEW YORK (TheStreet) -- Large U.S. banks face an equity capital shortfall of $100 billion to $150 billion once new Basel capital standards are implemented, according to a Barclays Capital (BCS_) analysis. Tom McGuire, an investment banker within Barclays' capital advisory group, performed an analysis of how much capital U.S. banks are lacking if they aimed to hold an appropriate cushion. He found that the top 35 U.S. banks would need to find $100 billion to $150 billion in additional capital between now and 2015 when the rules are implemented, according to a spokesman. About 90% of the capital needs are tied up in the six largest banks. By asset size, those banks would be Bank of America (BAC_), JPMorgan Chase (JPM_), Wells Fargo (WFC_), Citigroup (C_), Goldman Sachs (GS_) and Morgan Stanley (MS_). McGuire also estimates that the top 35 banks have a "liquidity shortfall" of $500 billion -- meaning they will have to come up with additional cash and cash-like assets. However, the investment banker thinks the gaps are "manageable" over that phase-in period and probably won't require much equity raising via stock sales. Instead, he thinks banks will address the shortfalls through retained earnings, asset run-offs and otherwise de-risking business lines. "These shortfalls are entirely manageable?.?.?.?The more difficult question is what affect the new rules will have on the cost and availability of credit and bank profitability," said McGuire told the Financial Times, which first reported his analysis on Monday. The Basel Committee on Banking Supervision issued new rules in September, which will eventually require banks to hold a minimum of 7% risk-weighted Tier-1 capital against assets. The industry has five years before those rules are implemented, though, and the capital requirements won't necessarily lead to stock sales. Banks could also retain more earnings or shrink the size of their balance sheets to reduce the amount of capital they're required to hold. Management of big U.S. banks have told investors they are ahead of the game in terms of Basel and capital adequacy during recent public discussions. During a conference call to review third-quarter results on Oct. 19, Bank of America CEO Brian Moynihan said his team "simply took all the rules that are going to be applied" over the next two years and acted as though they were effective immediately. He added that since early 2010, he'd been telling investors that "from a clear risk basis," Bank of America ought to be holding a Tier 1 capital ratio of 8.5% to 9% of risk-weighted assets and a 5.5% to 6% ratio of tangible common equity, which is the best loss-absorber. thestreet.com