Two Ways To Play: FDIC Warns, "Don't Bank On It"
Strengthen your portfolio in good times and bad.
In all, 117 banks were on the list as of June 30, up from 90 in the first quarter. 2Q earnings for the sector fell from $19.3 billion in the previous quarter to $4.96 billion and down from $36.8 billion a year ago. It marked the second-lowest net income reported since the fourth quarter of 1991.
Chairman Sheila Blair said at a news conference that the results weren't pretty and she doesn't see a return to the high earnings environment any time in the near future.
So far, banks around the world have reported over $500 billion in writedowns and credit losses. Citigroup (C) leads U.S. companies, reporting over $55 billion to date.
See Professor Bennet Sedacca's Dead Banks Walking?
From the Bull Pen: Bulls can consider Cash America (CSH) for a play. Bad times are good times for this company. Sell-stops can be set below $39.
From the Bear Cave: Bears can consider Discover (DFS) for a downside play. Will the stock get stuffed at its 200 DMA ($16)? Buy stops can be set above that level.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter