Shorting the Big Banks (e.g. JPM, BT, CMB, CCI)

STOCKTALK

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Non-Tech
Shorting the Big Banks (e.g. JPM, BT, CMB, CCI)

An SI Board Since August 1998

Posts	SubjectMarks	Bans
268	9	0

Emcee: BDR	Type: Unmoderated

Introduction Compact

At the outset I will acknowledge that my reason for starting this thread is self-serving. I make no pretense of understanding the banking business and its accounting. It is common knowledge that the large banks have significant exposure due to the economic deterioration in several parts of the world. After discussing this subject via PMs with another SI member for a while we realized that neither of us knew much about the business though we both felt that some of these stocks would be good shorts. He suggested I start a thread to discuss the subject and even offered an introductory statement:

"I am a doc and I was put up to this by some mouthy street lawyer and together, our knowledge of the banking business rolled up in a ball looks like a bb rolling down a four lane super highway."

So, help me out. What really is the banking industry's exposure? If it is so obvious, why can't all those smart people earning six and seven figures at the banks work their way out of it? Has the exposure already been factored into the stock price? Which bank stocks make the best shorts? What related financial stocks might we look at for "collateral damage" as various economies tank around the world?

Longs, shorts, fence sitters, anyone with information to impart are all invited to participate. Flamers-please take it somewhere else.

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
268	Reaction to Mayo's downgrade: cnnfn.com	David C. Burns	-	5/25/1999
267	Posting for the thread's info. Does not imply my endorsement. Message 9723	David C. Burns	-	5/24/1999
266	DJ, sometimes an individual stock has a special circumstance which makes it a	JEB	-	5/9/1999
265	<<Dale, I guess you made money by shorting bank long time ago, but I am s	BDR	-	3/14/1999
264	As I mentioned long time ago, it was time to short bank when this thread is cre	dj8000	-	3/14/1999
263	<<This thread as well as shorters are dying. >> I thought it had d	BDR	-	3/14/1999
262	I just bought some puts today. But that's probably a contrarian bullish i	epicure	-	3/11/1999
261	CMB is 89 now. and This thread as well as shorters are dying. DJ	dj8000	-	3/11/1999
260	Banks may be called on to restate/reduce reserves. Benefit to earnings but it w	BDR	-	2/25/1999
259	;-)...keep up the good fight, my friend! Thanks, JEB	JEB	-	2/20/1999
258	JEB, The gold world is one of shadowy, nuances. EVERYONE is afraid to go aga	Bill Murphy	-	2/20/1999
257	What kind of response have you had?	JEB	-	2/20/1999
256	JEb, Just starting. The internet makes this possible. Mind boggling what has h	Bill Murphy	-	2/20/1999
255	;-)...you've done well so far with this war.	JEB	-	2/20/1999
254	Thank you JEB, I am long this and will post it to let you know what we are up	Bill Murphy	-	2/20/1999
253	Bill, Heads up to you and all here, the financial sector will be the next mark	JEB	-	2/20/1999
252	Midas du Metropole "The Gold Market and Precious Metals Commentary" Q	Bill Murphy	-	2/19/1999
251	Maverick, interesting. I am going to post my last Midas here. Has to do with th	Bill Murphy	-	2/19/1999
250	Prudential Securities cut its rating on CHASE MANHATTAN CORP Thursday to accumu	Maverick	-	2/18/1999
249	Don, I remember that well. This was sent to me at one of my threads here at SI	Bill Murphy	-	1/26/1999
248	Bill: ++OT++ You are correct. Very good friend of mine went to ND when I went	Don S.Boller	-	1/26/1999
247	Don, Yep the "Fighting Irish" have not been up to SPEED lately. They	Bill Murphy	-	1/26/1999
246	JEB, Yes we are read for battle. Two thousand more in pledges came in last	Bill Murphy	-	1/26/1999
245	"CONTEND WITH THE FIGHTING IRISH".................Heck we beat you gu	Don S.Boller	-	1/25/1999
244	Good luck with it. Let me warn you that this will drag out for some time. I h	JEB	-	1/25/1999

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