Trying to shore up share price with the dividend but its not working. Wells fargo are up later. If they miss ire/bkir will be glad to hear the closings bell this evening. -5% again today a real possibility.
falls accelerating, now down 3.26% on 323k shares. JPM's 1Q 2014 BV=54 and share price 55.69 currently. It still made a 10% ROE and is increasing the dividend to an annual $1.6 (0.4 per quarter) which is a 2.9% dividend yield!!!
This is from Goodbodys this morning, whether you respect them or not, it is an interesting proposition and stranger things have happened:
Economic View Is QE on private securities on the way? There has been a lot of speculation on the prospects for QE in the euro area over recent weeks. Piecing together two supposedly unrelated stories over recent days, we would like to add to that speculation. The first story that got our attention was the news that Catalunya Banc SA, a state-owned Spanish lender, is considering selling asset-backed securities. In addition to this, the Spanish government is reportedly considering a government guarantee for a portion of the securitisation. The second story is the comments from Irish Finance Minister Michael Noonan two days ago in which he said that the “mechanism seems to be that the European Central Bank would buy certain types of financial instruments in the banks. We’d want to make sure we have the financial instruments in place if they go in that direction”. One of the key concerns expressed by the ECB to buying private securities has been the size of the market in the euro area. With this in mind, these two stories may reflect a concerted effort to address this particular concern. A state guarantee for even a part of a mortgage securitisation would be a controversial issue, but there are significant benefits of such transactions for the banks, in terms of funding costs and risk-weighted assets. For Ireland, such a move would be particularly helpful for the state-owned permanent tsb and AIB, but any move by the ECB to buy up private banking assets should help the banking system in the euro area as a whole. While we may be putting two and two together to get five, further speculation on QE is likely to intensify in the coming months in the context of continued low inflation readings.
Fair point, though the falls in Euro zone banks since Wednesday have been greater:
Deutsche Bank down 3.1% AXA down 4.1% BNP PARIBAS down 4.8% Intesa down 5.6% Natixis down 7%
But, yes, BKIR is down 10.4% over the same period. So there may be some big hitters moving the stock around, as you say. But there has been nothing to indicate that this stock will be other than a a winner over the next two years.
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