As of late, euphoria in bank stocks has rest on a simple prediction: The losses that brought so much pain over the past two years are finally coming to an end.
Maybe you've heard this popular myth: A major cause of the financial crisis was boneheaded Wall Street compensation packages unaligned with shareholder interests.
In February, with great fanfare, the government announced a mortgage modification program targeting loans backed by Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). It was designed to stem the surge in foreclosures and give the little guy a chance. A bailout for the average Joe, to fix housing and get the economy back on track.
Think you have a lot invested in Bank of America (NYSE: BAC)?
John Paulson, the head honcho at Paulson & Co. (not to be confused with ex-Treasury chief Hank Paulson), invested $2.2 billion in the bank during the second quarter, at an average buy price of $13.20 a share.
Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, banking behemoth Citigroup (NYSE: C) has received a distressing two-star ranking.
Florida, August 8: The effects of economic recession just do not seem to show any signs of slowing down with two more banks being shut down in Florida and one in Oregon. With this, the number of U.S. banks that have failed this year jumped to 72.
You've probably heard by now that Goldman Sachs (NYSE: GS) shot the lights out last quarter. In its 10-Q, released earlier this week, the investment bank shows just how successfully it's navigating current markets. During the second quarter, Goldman made more than $100 million in trading revenue in each of a record 46 days, with just two losing days out of 65 – for an astonishing hit rate of 97%!
Bank of America (NYSE: BAC) has surged nearly sevenfold since its March lows. After this epic run, it's worth asking: Are shares getting ahead of themselves, or are they still worth buying?
It was a relatively slow Monday morning for me, spent trying to kick-start my brain with a few cups of coffee, when Bank of America (NYSE: BAC) jolted me into action -- and gave me a great laugh.