Paul J. There is double impact for banks that already have residential portfolio that is performing poorly. Regions shares shed 10. 5 while SunTrust fell 9. You also have people looking at companies that have already raised capital, because there is belief that they already have on hand. Inc., wrote in note issued brought pair of new capitalraising plans and more punishment for financial stocks as investors sold shares of companies they believe be next in line. David Breitkopf contributed to this story. Regions had not returned call requesting comment by press time.
The KBW bank index declined 2. 9 building on Tuesdays 3. 68 loss. Then again, few quarters from they not be able to the capital they need, he said. Investors showed they remain leery of all bank stocks. Originally published in American Banker.. Some analysts said the selling pressure appearing lately in the market could force some companies to issue stock before more value is lost, even if they have chance of making it through the credit cycle with the funds they already have to come back to the well, Mr.
Fitzsimmons said that investment bankers have been looking to take advantage of that argument in recent months. Kevin Fitzsimmons, an analyst at Standard & Poors Corp., said in an interview that Wall Streets focus on credit quality soon shift from housingrelated loans to commercial lending, with an emphasis on industries that could have secondary exposure to consumers, such as retailers and service providers and commercial developments tied to such companies.
said they would bolster capital to address rising credit costs. They have held up fairly well but there are signs in the secondary markets that indicate it could be an issue for lot of banks, Mr. Paul J. Some analysts said the selling pressure appearing lately in the market could force some companies to issue stock before more value is lost, even if they have chance of making it through the credit cycle with the funds they already have to come back to the well, Mr. Fitzsimmons said. Plesser said.
Increasing uncertainty toward dividend sustainability or possible dilutive capital raise make it difficult to handicap current valuations at SunTrust, Robert Patten, an analyst at Sandler ONeill & Partners LP, said Fifth Third is perfect example of company whose tangible equity ratios appear to be above the once generally accepted comfort level of 6. spokesman for SunTrust said it does not comment on analyst reports. Then again, few quarters from they not be able to the capital they need, he said. Paul J.
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