Bouncing around trading desks is this comment on Fifth Third Bancorp (FITB):
“Given its recent performance, the company has announced they are changing its name to “Three Fifths” Bank . . .”
Looking at the chart below, perhaps that should even be “Two Fifths” Bancorp !
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Thanks, Mike!
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Anyone catch the RBS commentary from Bob Janjuah. Here’s a snippet:
The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks. “A very nasty period is soon to be upon us – be prepared,” said Bob Janjuah, the bank’s credit strategist. A report by the bank’s research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as “all the chickens come home to roost” from the excesses of the global boom, with contagion spreading across Europe and emerging markets. RBS warning: Be prepared for a ‘nasty’ period. Such a slide on world bourses would amount to one of the worst bear markets over the last century.
Not sure how much play this got on CNBC, but this seems like a pretty brazen call. It’s not like RBS is some small firm making cuckoo calls.
– AT
…more like 1/5th of 1/3rd Bancorp!
The housing bubble and burst, which is a symptom of lots of economic problems, is getting worse. The number of people that are walking away in my area is accelerating and, in California–with very few exceptions, there is no recourse against the borrower. Bank/Investor losses are going to be staggering and will continue to mount for the next 18-months.
Last Third?
RBS call..you kidding ..those are the guys if you are sinking in quicksand take action and throw you a rope..or if your stuck in a cable car acrooss a mountain cliff press the on button..or interuppted a boring speech by a teacher blowhard when they were 12..but also just wrote off a couple billion recently..nice..
Having worked for this turd at one point in my life, I am amazed that it has taken this long for the street, ahem, investors to recognize the issues at play and reflect such pricing. Who is next? How many more?
Yours at 2/5!
In fact, the history of the bank is that it was a merger of two banks and not called Third Fifth specifically because of the humor which would be directed against it.
How about 3/5ths Bancrupt?
As a less than satisfied former customer, I always thought it was morbidly amusing that their idea of a whole number was 5/3. That has to be a all-time terrible name, especially for a bank.
I have a loan from 5/3rd (or currently 1/3rd). If they go bankrupt, does that mean I don’t have to repay them……..
Just wondering.
Gotta wonder when the capital-raising spigot gets turned off.
So far, everyone who’s acted as though this is 1990 and they want Citi at $9 for a decade-long 12-bagger has gotten their little butt toasted.
Investors are always willing to expect high profits when everyone knew the banks were taking in higher risk loans to keep those same investors happy (greed). Now it has finally tilted back and they point fingers. Maybe oil futures next time? They should have stayed out of the Hard Money business, that’s basically what they were doing wasn’t it?