The Crash In US Bank Stocks Is Only Half-Way Through

Tyler Durden's picture

It appears by the total lack of coverage that the utter collapse of Europe's banking system is entirely irrelevant to the "fortress-like" balance sheets of US banks... but it is not. Once again today, US financials saw bonds dumped across the senior and subordinated segments...

 

...and while US financial stocks have fallen hard year-to-date, if credit is right - and it usually is on a cyclical basis - US bank stocks have a long way to go (as believe in book values is battered).

 

Of course, the CEOs will all tell investors there is nothing to worry about - just as David Stockman warned...

"in my experience is that when the crunch comes, bank CEOs lie"

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Tinky's picture

Half-way? An optimist, I see.

marathonman's picture

I would love to see the stock value of Goldman at zero. Take that Lord Blankfein.

FlipFlop's picture

ECB has taken responsibility to supervise the major banks. They have a weapon called the bank resolution fund.

Sounds good? Well, the fund needs to be capitalized, then it might work. Yesterday here was some speculation that ECB might purchase bank stocks. Great, digital currency makes a solid equity base for the Europa :)

In other words, we are fucked. Thank God, Schauble keeps telling that DB is solid. From the mouth of finmin takes makes me feel slightly better, especially since I am no longer German tax payer.

BennyBoy's picture

Gee willikers!

Are the banks that own the FED bankrupt again?!

All god's chillin' need to bail out those who do god's work.

open-range's picture
open-range (not verified) Tinky Feb 11, 2016 3:06 PM

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Sid James's picture

It's Bankushima!

DownWithYogaPants's picture

Ok. Ding ding ding.  We have a winner!  You just made my whole day:

BANKUSHIMA 

coffee out the nose holes with that one

Mark Mywords's picture
Mark Mywords (not verified) Feb 11, 2016 1:25 PM

Who cares about bank stocks? We have tech stocks to keep the *market* afloat.

I'd say if we don't break below 1812 real soon, it's UP UP AND AWAY!

Soul Glow's picture

So when you make comments like this, about stocks going up and away, and I say you're a bull, how am I wrong.

Devotional's picture

Is it me or is 1800 on the S&P500 being defended?

Save_America1st's picture

sub-1800 is most definitely NOT a good place to be and it will most likely be defended with all those bitchez have got. 

chairman of the bored's picture

Yea,the low was 1812 and change...bounced right back up...

franzpick's picture

1810. Being defended by the French.

Squid Viscous's picture

Jump you fuckers!

BAC back to $2... then maybe worth a sniff, or not

Is Dick Bove in his bunker yet? That motherfucker needs a good necklacing.

Iam_Silverman's picture

Whew,!  At least it's far enough into the new year that those big bonuses won't be affected.

And, once they bottom out, any rise above the floor is reason enough to break out the Champagne and celebrate with a round of more bonuses!

Pasadena Phil's picture

I keep hearing one "expert" after another citing the banks' trading at half of book value. But why does that even matter? Their books are loaded with worthless collateral that the Fed has told them doesn't need to be market to market. So $0 of market value gets reported on the books as $XXX billion. What IS the right number to plug in there anyway? How many other assets besides zombie houses and $95 per barrel oil fields are also not marked to market? Let's just assume that the banks don't have ANY collateral with value left if they won't tell us.

E.F. Mutton's picture

I'm sure this is purely coincidental, but Drudge has a story - "Adult Diaper Market is About to Take Off"

franzpick's picture

HalfAmerica Bank: Half your savings and checking balances are guaranteed Janet-proof for half a year.

Soul Glow's picture

Not even healf.  WHen this is said and done a few of the world's largest banks will have closed up shop and all others will be begging for crumbs.

thismarketisrigged's picture

what u.s bank will be the first one to need a bailout?

also, do people on this site still keep there money in the banks, because i sure as hell dont trust those assholes for nothing

One And Only's picture

With government bond yields so low and in many cases negative I believe the banks are shorting themselves.

If I was a bank I'd be going balls to the wall short myself. I know they say don't sell yourself short but they never thought yields would be so low.

LawsofPhysics's picture

Good, then they should have no problem bailing themselves out with all those profits they get when they collapse...

 

Bluntly Put's picture

If/when banks begin to take deposits for bail ins, they will exchange equity shares for deposits. But those will be new shares the bank creates, therefore diluting all other stock for the bank. That means bank stocks have a lot, lot further to go.

franzpick's picture

NationalizedBankOfAmerica, or the SocializedBankOfAmerica: You can pay me now or you can pay me later.

honestann's picture

Stockman:  Short bankster lies!  Good advice.

Dg4884's picture

Already reading the writing on the wall, last year we opened credit union accounts and kept our Wells Fargo accts open to pay bills only.  Closed our savings accounts, pulled CD's.  Just today, grabbed $6k out of savings to store at me casa.  No, you cannot have my address.

hooligan2009's picture

Yellen testimony "don't mess with me Mz Congress or I will make you pay interest on your debt!"

Yellen underwrites the US fiscal deficit to the tune of $100B a year and $600B over the last 5 years????

hahahahahahahahahaha

why doesnt she borrow another $100T and force the banks to earn 0.25% when she can buy MBS and T for a yield pick up of 1% and pay the Treasury $1T ... IN ITS OWN WORTHLESS DEBT!!!!

ponders why nobody is asking the FED why a $4T balance sheet is better than a 1T, 2T or 10T balance sheet and what level she thinks bond yields would be if she had to sell the balance sheet back to the market.

talk about circular, she has lost the plot entirely, and is about as boring as a plank (which looks like it needs a health check)

 

blkblttrdr's picture

"Next time we need a better curtain"

The Wizard of Oz

blkblttrdr's picture

"Next time we need a better curtain"

The Wizard of Oz