If you put a band aid on a gaping wound and tell the person that they are going to be all right, your actions have done more harm than good. In many ways this is what is happening with the TARP bail out. And like the old potato chip commercial, a lot of these banks can’t stop at one – they are lining up at the TARP trough to feed again on public money.
Wed. Mar. 4, 2009
commentary
TARP Trips: You Can’t Stop At Just One *
Tue. Feb. 24, 2009
commentary
Financial Crisis: Can You Spare A Dime For My Wealthy Friend? *
So, the company you work for is starting to lose money and the layoffs have begun. You hold your breath as the names are read. Then suddenly it dawns on you – it just the working stiffs that are being affected. Is there something wrong with this picture? Where’s the equity in this? Not to fear, after careful research I have determined this financial downturn is so bad, that even the well-to-do are suffering – at least in their own way. Consider the following:
Tue. Feb. 17, 2009
commentary
Wells Fargo: Things May Not Be Well at Wells *
I thought Bank of America (BAC) was strong enough to survive without cutting its dividend. It was better managed than Citigroup (C) and wasn’t in near the dire straits that C was in when it was forced to cut its dividend. This all changed with the announced acquisition of Merrill Lynch. When a company such as Merrill is sold at a fire sale, there usually is a reason. BAC is now learning why Merrill was so favorably priced – they got what they paid for. Is this same situation playing out with Wells Fargo’s (WFC) acquisition of Wachovia?
Fri. Jan. 23, 2009
commentary
Big Banks, Little Dividends: More Bad News For Large Banks *
Big banks continue to struggle and rely on TARP funds to prop them up. Last week Bank of America (BAC) reported a net loss of $0.48 per share for the fourth quarter, well below the consensus of an $0.08 profit. Merrill Lynch’s preliminary results indicate a fourth quarter loss of $15 billion due to the turmoil in the capital markets. The U.S. government agreed to provide BAC an additional $20 billion to assist in the Merrill acquisition. In addition, the government has agreed to provide BAC protection against certain losses on $118 billion in selected capital markets.
Fri. Jan. 16, 2009
commentary
Bank of America Headed Back to the TARP ATM *
Someone once said that there is no such thing as bad publicity. I think Bank of America (BAC) would take exception to that statement. BAC has been in the news all week and it has not been flattering or reassuring to it shareholders. This once proud dividend aristocrat continues to struggle even after slashing its dividend.
Tue. Oct. 14, 2008
commentary
Should You Sell A Dividend Stock After A Dividend Cut? *
I am not a stock trader; I am a dividend and value based long-term buy-and-hold investor. When I add a stock to my dividend portfolio, it is my intention to hold the stock forever. I am not smart enough to time the daily gyrations of the stock market. When stock prices start dropping, our primal instinct of flight kicks in and we want to sell. In many cases that is the time to be buying. However, sometimes selling a stock is the right thing to do.
Buy-And-Hold Under Attack *
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