Oh, so “some” banks ?
Overall, both the quantity and quality of capital at many large bank holding companies have improved since the financial crisis, the Fed said. The return of capital to shareholders under appropriate conditions is a step in the process of improvement in the financial sector and will help to promote banks long-term access to capital.
Really? Is there actual coverage of bank “assets” by actual capital? How about second lines on homes, for instance?
There are a few people who I converse with on the forum and elsewhere who have been looking through some offerings of these loans, and also tracking their performance. I’ve long argued that one of the big scams with bank balance sheets is that these loans are, as second lines, worthless if there is a mortgage default and the home is worth less than the first. We’re now seeing this with losses on these loans in the 70-100% range.
Earnings estimates on balance are positive for the near-term, but should be improving at a much stronger pace. How the “Street” will reward or punish WFC, or any other company in the future, is always questionable. It appears,
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