Wednesday, June 01, 2011

Ugly for Banks, Again

Ticker has all sorts of bad news.

"If we do not see a meaningful recovery in home prices by the end of the year, we may need to contemplate impairment charges on first liens owned by banks and wholesale write-downs of second lien exposures. This implies solvency issues..." C Whalen, Inst'l Risk Analytics, quoted by Ticker.

Named in the Whalen quote: Citi, B of A, JPMorganChase, and WellsFargo.

3 comments:

J. Strupp said...

Could be worse.

You could be a bank in Germany sitting on a pile of Greek debt right now. It's coming a part at the seams over there right now.

Dad29 said...

There's a difference between Greek debts and Lehman MBSs?

Oh, that's right: the US taxpayer made good on the Lehman MBS. Not that they volunteered to do so, of course.

Are you purchasing ammo, Struppster?

J. Strupp said...

Not yet. But I think I'll cruise by that section of Cabela's and take a look at what they have over there.