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Question the Quality Of BoomBustBlog Bank Research, Will You? Bove and Fitch Follow "The Blog"!
On Friday, the 9th of December 2011 I published What Is More Valuable, The Opinion Of A Major Rating Agency Or The Opinion Of A Blog? Go Ahead, I DARE You To Answer!
wherein I made clear that rating agencies are STILL moving in slow
motion and using kids gloves, as was articulated in the piece Where Are The Ratings Agencies Before UK & German Banks Go Boom? How About Those Euro REITs? Agencies Anybody? Remember, I warned of a European bank runs early on and even warned the public (after my subscribers had an opportunity to take positions) of the impending fall of BNP Paribas. See "BoomBust BNP Paribas?" (it is strongly recommended that you review this article if you haven't read it already) I started releasing snippets and tidbits of the proprietary research that led to the BNP short, namely "Bank Run Liquidity Candidate Forensic Opinion" - A full forensic note for professional and institutional subscribers.
I
then went on to throroughly analyze the risks and potential downfalls
of Goldman, Morgan Stanley and Bank of America - all while the sell side
had strong buys on both these banks and the industry. Well, it appears
as Fitch has either caught an attitude, caught religion or both. As
reported through the MSM, Fitch Downgrades Several Big US and European Banks
Fitch
downgraded its credit ratings on several big banks, including Bank of
America and Goldman Sachs, citing "increased challenges" in the
financial markets.
I also went so far as to declare celebrity
bank analyst Dick Bove to be wrong on his stance on banks - perennially
wrong - and despite his long track record that has been both in direct
contravention to my outlook and to that which actually happens (aka
reality) he is CONSTANTLY featured in the MSM. To wit, look who arrives
late to the party, touted and showcased by the mainstream media saying
the same thing that I screamed from BoomBustBlog 6 months ago while he
was saying BUY! BUY! BUY! Bove Slashes Price Targets on Goldman Sachs, Morgan Stanley
Bank
analyst Dick Bove cut price targets and earnings estimates on financial
giants Goldman Sachs (GS), Morgan Stanley (MS) and Credit Suisse (CS)
on ...
Here's my rant on the man known as Dick...
CNBC Favorite Dick Bove Admits To Being Wrong On Banks, But For The Right Reasons, But Those Reasons Are Still Wrong!!!
As excerpted...
Now
that we've established a small base of potential credibility when it
comes to bank failure, back to today and Dick's proclamations on CNBC,
let's start with Bank of America, who Dick says won't be affected by
European malaise. This is Reggie's take...
Then there's Goldman Sachs, the bank where Reggie is just so loved...
After
all, I'm sure there'll be no volatility in the markets if Europe blows
up. Then again, even if there is volatility in the markets, Goldman's
prop desk can handle it, right? I sure hope you guys don't think I'm being a Dick, do you?
What Was That I Heard About Squids Raising Capital Because They Can't Trade? Well, you guys know where I stand on this, and I have warned you ad nauseum...the Squid Can't Trade!
After all, eventually someone must query, So, When Does 3+5=4? When You Aggregate A Bunch Of Risky Banks & Then Pretend That You Didn't?
I'm Hunting Big Game Today: The Squid On A Spear TipSummary: |
Hunting the Squid, Part2: Since When Is Enough Derivative Exposure To Blow Up The World Something To Be Ignored?Welcome |
Hunting the Squid Part 3: Reggie Middleton Serves Up Fried Calamari From Raw SquidFor |
Hunting the Squid, part 4: So, What Else Can Go Wrong With Goldman Sachs? Plenty!Yes, |
Hunting the Squid, Part 5: Sometimes Your Local Superhero Doesn't Look Like What They Show You In The Movies |
On
to the next Banque de Dick... You'd think with Dexia in the news, one
would know to either stay clear of JP Morgan or at least subscribe to
the BoomBust, eh? CNBC reports today (as highlighted in the introductory
graphic) France, Belgium Wrangle About Dexia Deal: Reports. Why is this important? Well, look at why Dexia's in trouble in the first place. In the (must read) post
Dexia Sets A $5.1bn Provision For Loss On Trying To Sell The Same
Residential Real Estate Assets Upon Which JP Morgan Has Slashed
Provisions 83% to $1.2bn from $7.0bn you will find..
...Similarly,
many sell-side researchers award stocks “buy” or “overweight” ratings
even as their internal asset-management units unload shares, presenting a
conflict of interest and ethical dilemma. Goldman’s most famous
front-runs to date were the Abacus transactions, through which the bank
allegedly postured for high ratings for its mortgage-backed CDOs, sold
them to clients and then shorted them.
According
to research from the Street.com, Goldman put a Conviction Buy
Recommendation on JP Morgan Chase shares and issued it to their clients,
and then sold 4,200,009 shares of JPMorgan Chase. At an average of
$45/share, that means that Goldman had a lack of conviction in its own
"Conviction Buy" recommendation to the tune of $189,000,405. I'd hate to
see what the company would do if they recommended clients sell, or
worst yet short sell, stock. Oh yeah! We already know, don't we.
Bloomberg reports: Dexia Takes 3.6 Billion-Euro Charge on Asset Sales
That
charge taken by Dexia was more than necessary, and most likely not
nearly enough. But wait a minute, why did JP Morgan do the exact
opposite regarding the exact same asset class?
Do you remember my recent missive "There’s Something Fishy at the House of Morgan"?
Well, in it I queried how it was that JP Morgan can continuously pull
risk provisions and reserves to pad quarterly accounting earnings at
time when I not only made clear that we are in a real estate depression but the facts actually played out the same. As excerpted from the aforementioned article:
I
invite all to peruse the mainstream financial media and sell side Wall
Street's take on JP Morgan's Q1 earnings before reading through my take.
Pray thee tell me, why is there such a distinct difference? Below are
excerpts from the our review of JP Morgan's Q1 results, available to
paying subscribers (including valuation and scenario analysis): 
JPM Q1 2011 Review & Analysis.
'Nuff said! Let's move over to Morgan Stanley... The Truth Is Revealed About The Riskiest Bank On The Street - What Does That Say About The Newest Bank To Carry That Title? You know, I'm still quite bearish on Asian, European and American banks. Just look at the facts as they're laid before you...
On Friday, the 9th of December 2011 I published What Is More Valuable, The Opinion Of A Major Rating Agency Or The Opinion Of A Blog? Go Ahead, I DARE You To Answer!
wherein I made clear that rating agencies are STILL moving in slow
motion and using kids gloves, as was articulated in the piece Where Are The Ratings Agencies Before UK & German Banks Go Boom? How About Those Euro REITs? Agencies Anybody? Remember, I warned of a European bank runs early on and even warned the public (after my subscribers had an opportunity to take positions) of the impending fall of BNP Paribas. See "BoomBust BNP Paribas?" (it is strongly recommended that you review this article if you haven't read it already) I started releasing snippets and tidbits of the proprietary research that led to the BNP short, namely Bank Run Liquidity Candidate Forensic Opinion - A full forensic note for professional and institutional subscribers.
I
then went on to throroughly analyze the risks and potential downfalls
of Goldman, Morgan Stanley and Bank of America - all while the sell side
had strong buys on both these banks and the industry. Well, it appears
as Fitch has either caught an attitude, caught religion or both. As
reported through the MSM, Fitch Downgrades Several Big US and European Banks
Fitch
downgraded its credit ratings on several big banks, including Bank of
America and Goldman Sachs, citing "increased challenges" in the
financial markets.
I also went so far as to declare celebrity
bank analyst Dick Bove to be wrong on his stance on banks - perenially
wrong - and despite his long track record that has been both in direct
contravention to my outlook and to that which actually happens (aka
reality) he is CONSTANTLY featured in the MSM. To wit, look who arrives
late to the party, touted and showcased by the mainstream media saying
the same thing that I screamed from BoomBustBlog 6 months ago while he
was saying BUY! BUY! BUY! Bove Slashes Price Targets on Goldman Sachs, Morgan Stanley
Bank
analyst Dick Bove cut price targets and earnings estimates on financial
giants Goldman Sachs (GS), Morgan Stanley (MS) and Credit Suisse (CS)
on ...
Here's my rant on the man known as Dick...
CNBC Favorite Dick Bove Admits To Being Wrong On Banks, But For The Right Reasons, But Those Reasons Are Still Wrong!!!
As excerpted...
Now
that we've established a small base of potential credibility when it
comes to bank failure, back to today and Dick's proclamations on CNBC,
let's start with Bank of America, who Dick says won't be affected by
European malaise. This is Reggie's take...
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Then there's Goldman Sachs, the bank where Reggie is just so loved...
After
all, I'm sure there'll be no volatility in the markets if Europe blows
up. Then again, even if there is volatility in the markets, Goldman's
prop desk can handle it, right? I sure hope you guys don't think I'm being a Dick, do you?
What Was That I Heard About Squids Raising Capital Because They Can't Trade? Well, you guys know where I stand on this, and I have warned you ad nauseum...the Squid Can't Trade!
After all, eventually someone must query, So, When Does 3+5=4? When You Aggregate A Bunch Of Risky Banks & Then Pretend That You Didn't?
I'm Hunting Big Game Today: The Squid On A Spear TipSummary: |
Hunting the Squid, Part2: Since When Is Enough Derivative Exposure To Blow Up The World Something To Be Ignored?Welcome |
Hunting the Squid Part 3: Reggie Middleton Serves Up Fried Calamari From Raw SquidFor |
Hunting the Squid, part 4: So, What Else Can Go Wrong With Goldman Sachs? Plenty!Yes, |
Hunting the Squid, Part 5: Sometimes Your Local Superhero Doesn't Look Like What They Show You In The Movies |
On
to the next Banque de Dick... You'd think with Dexia in the news, one
would know to either stay clear of JP Morgan or at least subscribe to
the BoomBust, eh? CNBC reports today (as highlighted in the introductory
graphic) France, Belgium Wrangle About Dexia Deal: Reports. Why is this important? Well, look at why Dexia's in trouble in the first place. In the (must read) post
Dexia Sets A $5.1bn Provision For Loss On Trying To Sell The Same
Residential Real Estate Assets Upon Which JP Morgan Has Slashed
Provisions 83% to $1.2bn from $7.0bn you will find..
...Similarly,
many sell-side researchers award stocks “buy” or “overweight” ratings
even as their internal asset-management units unload shares, presenting a
conflict of interest and ethical dilemma. Goldman’s most famous
front-runs to date were the Abacus transactions, through which the bank
allegedly postured for high ratings for its mortgage-backed CDOs, sold
them to clients and then shorted them.
According
to research from the Street.com, Goldman put a Conviction Buy
Recommendation on JP Morgan Chase shares and issued it to their clients,
and then sold 4,200,009 shares of JPMorgan Chase. At an average of
$45/share, that means that Goldman had a lack of conviction in its own
"Conviction Buy" recommendation to the tune of $189,000,405. I'd hate to
see what the company would do if they recommended clients sell, or
worst yet short sell, stock. Oh yeah! We already know, don't we.
Bloomberg reports: Dexia Takes 3.6 Billion-Euro Charge on Asset Sales
That
charge taken by Dexia was more than necessary, and most likely not
nearly enough. But wait a minute, why did JP Morgan do the exact
opposite regarding the exact same asset class?
Do you remember my recent missive "There’s Something Fishy at the House of Morgan"?
Well, in it I queried how it was that JP Morgan can continuously pull
risk provisions and reserves to pad quarterly accounting earnings at
time when I not only made clear that we are in a real estate depression but the facts actually played out the same. As excerpted from the aforementioned article:
I
invite all to peruse the mainstream financial media and sell side Wall
Street's take on JP Morgan's Q1 earnings before reading through my take.
Pray thee tell me, why is there such a distinct difference? Below are
excerpts from the our review of JP Morgan's Q1 results, available to
paying subscribers (including valuation and scenario analysis): JPM Q1 2011 Review & Analysis.
'Nuff said! Let's move over to Morgan Stanley... The Truth Is Revealed About The Riskiest Bank On The Street - What Does That Say About The Newest Bank To Carry That Title? You know, I'm still quite bearish on Asian, European and American banks. Just look at the facts as they're laid before you...
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RM : Please give us an update of how the Iphone/ Google android phone stand off is playing out. MS vs gross margin play. Operating system/EOM vs App Store and broad product line strategy. It is a fascinating race, in this sad state of financial quagmire; TY.
Bove isn't even a good contrarian indicator. He is like a broken record, always touting the banks regardless of what happens.
MSM must really hate their viewers in order to keep inflicting Bove on them.