Banking Stocks Look Good Now, but Be Warned
The Record, Bergen County, NJ › January 21, 2008
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Summary
NEW YORK Contrarian investors who think now is the time to start buying beaten-down banking stocks could be in for a shock if they don't carefully review those companies' distressed home-equity loan portfolios.
Massive losses tied to subprime-mortgage investments knocked down bank earnings over the last year, spurring investors to flee those stocks. But that could be only the start: Rising delinquencies in home-equity loans and other second mortgages could keep the banks' results from improving anytime soon.See the full content of this document
Extract
Banking Stocks Look Good Now, but Be Warned
In recent days, executives at Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. said missed loan payments were a factor in their quarterly earnings declines. Most said the problem would only get worse.
Why? A ...See the full content of this document
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