BOA Berstein Says Sell Bank Stocks-Now

Annie

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Nov 22, 2003
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That doesn't sound good...

Bank of America’s Bernstein Says Sell Bank Stocks After Rally - Bloomberg.com

Bank of America’s Bernstein Says Sell Bank Stocks After Rally

By Eric Martin

March 23 (Bloomberg) -- Investors should sell bank stocks after they rallied 12 percent today because the Treasury Department’s plan to buy toxic assets won’t stop profits from dropping, Bank of America Corp.’s Richard Bernstein said.

Removing devalued loans and securities from banks’ balance sheets is a short-term solution that will delay the problem’s ultimate solution, which is bank takeovers, Bernstein said. The government won’t be able to inflate the prices banks receive for selling bad assets indefinitely, he added.

“The history of bubbles shows quite well that financial sector consolidation is inevitable,” Bernstein, Bank of America’s chief investment strategist, wrote in a research note. “Financial stocks will be attractive when the government tries to speed up that inevitable process. However, to the contrary, the government continues to attempt to stymie that inevitable consolidation.”...
 
If a bank is insolvent we ought to nationalize it.

Hell by insuring their deposits and taking over their toxic debts we're nationalizing their risks anyway.

Am I wrong or is all that will do is allow them to make the same damned greed driven risks they took to got us here to begin with?

We keep bailing out the wealthy why, exactly?
 
If a bank is insolvent we ought to nationalize it.

Hell by insuring their deposits and taking over their toxic debts we're nationalizing their risks anyway.

Am I wrong or is all that will do is allow them to make the same damned greed driven risks they took to got us here to begin with?

We keep bailing out the wealthy why, exactly?

i'm going to say this one more time. nationalizing a fucking bank would be a fucking disaster trust me. besides this little advice had nothing to do with the fact that he's leaving BAC next month now does it.
 
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