Stumble it!In addition to the report of 117 banks being on the "trouble" list, the earnings stink badly. It amazes me how this is all being spun as "good news", though, by the media. How? Well, it’s not as bad as some thought and it doesn’t appear that a big bank (large assets) is on the list. HEY- Indymac wasn’t on the dang list before it was taken over, either!! And I guess the fact that Q2 bank earnings are down 87% year over year is no big deal??!! Wow.
FDIC’S BAIR: Q2 WAS ANOTHER ‘ROUGH QUARTER’ FOR BANK EARNINGS
- says Q2 US bank earnings down 87% y/y to $4.96B, second lowest since 1991.
- says reserves for loan losses quadrupled to $50.2B.
- will propose increasing insurance premiums on banks
- says delinquent loans increased to $162.9B v $136.2B q/q
The market managed to close to the upside, but it was still a rather flat day. The chart of the 5 minute S&P, below, shows where the downtrend line was broken to the upside in the last hour. The push upwards is suspect, so be careful trying to play a bounce tomorrow. The hurricane that is headed to the Gulf, and the Russia problem, kept oil prices elevated today. See you later with more commentary!
