Monday, April 6, 2009

$BKX: re Banking Sector Debt Problems Are Far From Resolved

Previous comment on $BKX on 3/24/2009.

Tuesday, March 24, 2009 11:47:03 AM

$BKX 17.75 reversed at the same time as SPX 666.79 on 3/6/2009 and rallied to 31.05 on 3/23/2009 -- 70% rally from the low which is below the 1995 support at 30. $BKX is also trading near at the pivotal resistance 31 +/-. The bearish case for the major markets is to resume the final down move while $BKX is testing near the low 20, a higher low.


06 Apr 2009 | 10:37 AM

bank loan losses will exceed the Great Depression
Banking Sector Debt Problems Are Far From Resolved: Mayo
http://www.cnbc.com/id/15840232/?play=1&video=1084318977

Many of the recent fixes in the financial sector are merely "window dressing" and problems still persist in the sector, says Michael Mayo, a former Deutsche Bank analyst who now works for CLSA's Calyon Securities.

Mayo, who is widely respected for his timely calls in the sector, remains negative on the sector and is starting coverage at Calyon with "sell" or "underperform" ratings on 11 traditional U.S. bank stocks. His earnings forecasts for the sector also are below the average estimates of other Wall Street analysts.

Mayo's comments follow a run-up in banking stocks such as Citigroup and JP Morgan . His comments are putting pressure on banking stocks in trading on Monday.

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