Displaying items by tag: STi

Fourth quarter operating results opinions are available for Morgan Stanley and Suntrust for paying subscribers(File Icon STI 4Q09_Review

and File Icon MS 4Q09 result).

Of particular note is the difference between some readers perception of the Suntrust results and mine. If you take a close look at the results, you will see credit performance and asset quality is still deteriorating. The perception of a reprieve or moderation is potentially misleading due to the fact that Suntrust (like most other large banks) is actively shrinking their loan portfolio and transferring bad assets from one category to another.

To the credit of the CEO, he actually appears to tell it like it is and does not appear to be on a marketing binge to sugarcoat reality. This is an impressive, and increasingly rare trait among the C-suite crowd!

Some highlights from the Sun Trust Review: 

Fourth quarter operating results opinions are available for Morgan Stanley and Suntrust for paying subscribers(File Icon STI 4Q09_Review

and File Icon MS 4Q09 result).

Of particular note is the difference between some readers perception of the Suntrust results and mine. If you take a close look at the results, you will see credit performance and asset quality is still deteriorating. The perception of a reprieve or moderation is potentially misleading due to the fact that Suntrust (like most other large banks) is actively shrinking their loan portfolio and transferring bad assets from one category to another.

To the credit of the CEO, he actually appears to tell it like it is and does not appear to be on a marketing binge to sugarcoat reality. This is an impressive, and increasingly rare trait among the C-suite crowd!

Some highlights from the Sun Trust Review: 

Friday, 23 October 2009 00:00

More Bank Bullsh1t???

Among the green shoots sprouting today, we have several lenders reporting things are potentially looking better. Let's glance at two:

Loan Delinquencies Increase For Freddie Mac: Freddie Mac said on Friday its mortgage investment portfolio grew by an annualized 7.3 percent rate in September, while delinquencies on loans it guarantees accelerated.

The portfolio increased to $784.2 billion, for an annualized 3.4 percent decrease year to date...

The portfolio size increased on a year-over-year basis. In September 2008, the portfolio was $736.9 billion.

Delinquencies, which increase stress on the company's capital, jumped to 3.33 percent of its book of business in September from 3.13 percent in August and 1.22 percent in September 2008.

 Hmmm. All big lenders are shrinking their portfolio except for the one's outright nationalized. Oh well, there is one thing they nearly all have in common, and that is they are taking credit losses up the wazoo! Most paper over the losses with cute terminology and accounting gimmicks, but we at BoomBustBlog.com know better. After all, if you apply The open source mortgage default model loss rates to these companies' portfolio, the truth is evident.

SunTrust posts 3Q loss but sees some signs improve   22 Oct 2009  -  The Associated Press: ATLANTA - SunTrust Banks Inc. on Thursday posted a big third-quarter loss as it set aside more money to cover bad loans, but said the rate at which mortgages were slipping into delinquency slowed for the first time in a year.

I'm going to review this one in another post since I have so much to say about it.

 I received this email a couple of days ago. I looked into him and he is a relatively large concern. It is not just the little guy getting shafted...
Reggie - I am a large hotel company and have been treated like a thief by the doo doos [he is referring to Reggie Middleton's notorious Doo Doo 32 (As I see it, these 32 banks and thrifts are in deep doo-doo!)].  It infuriates me everyday.  This statement is obviously false and banks are using every coverage or ltv test they can to make borrowers pay loans down.  Please do not use my name in anything...

http://www.marketwatch.com/story/suntrust-reports-third-quarter-results-2009-10-22
Additionally, commercial loans have declined due to weak loan demand as a result of the recessionary environment and borrowers' desire to restrict capital spending and pay down existing debt facilities.

The Company has substantial available liquidity as the inflows of high quality deposits and longer term financing sources have largely been retained in cash and invested in high quality government-backed securities.
 Anyone interested in my latest take on the Suntrust numbers (remember, I warned you about them a long time ago) should look here: Reggie Middleton on Suntrusts Q3-09 Earnings
Friday, 23 October 2009 00:00

More Bank Bullsh1t???

Among the green shoots sprouting today, we have several lenders reporting things are potentially looking better. Let's glance at two:

Loan Delinquencies Increase For Freddie Mac: Freddie Mac said on Friday its mortgage investment portfolio grew by an annualized 7.3 percent rate in September, while delinquencies on loans it guarantees accelerated.

The portfolio increased to $784.2 billion, for an annualized 3.4 percent decrease year to date...

The portfolio size increased on a year-over-year basis. In September 2008, the portfolio was $736.9 billion.

Delinquencies, which increase stress on the company's capital, jumped to 3.33 percent of its book of business in September from 3.13 percent in August and 1.22 percent in September 2008.

 Hmmm. All big lenders are shrinking their portfolio except for the one's outright nationalized. Oh well, there is one thing they nearly all have in common, and that is they are taking credit losses up the wazoo! Most paper over the losses with cute terminology and accounting gimmicks, but we at BoomBustBlog.com know better. After all, if you apply The open source mortgage default model loss rates to these companies' portfolio, the truth is evident.

SunTrust posts 3Q loss but sees some signs improve   22 Oct 2009  -  The Associated Press: ATLANTA - SunTrust Banks Inc. on Thursday posted a big third-quarter loss as it set aside more money to cover bad loans, but said the rate at which mortgages were slipping into delinquency slowed for the first time in a year.

I'm going to review this one in another post since I have so much to say about it.

 I received this email a couple of days ago. I looked into him and he is a relatively large concern. It is not just the little guy getting shafted...
Reggie - I am a large hotel company and have been treated like a thief by the doo doos [he is referring to Reggie Middleton's notorious Doo Doo 32 (As I see it, these 32 banks and thrifts are in deep doo-doo!)].  It infuriates me everyday.  This statement is obviously false and banks are using every coverage or ltv test they can to make borrowers pay loans down.  Please do not use my name in anything...

http://www.marketwatch.com/story/suntrust-reports-third-quarter-results-2009-10-22
Additionally, commercial loans have declined due to weak loan demand as a result of the recessionary environment and borrowers' desire to restrict capital spending and pay down existing debt facilities.

The Company has substantial available liquidity as the inflows of high quality deposits and longer term financing sources have largely been retained in cash and invested in high quality government-backed securities.
 Anyone interested in my latest take on the Suntrust numbers (remember, I warned you about them a long time ago) should look here: Reggie Middleton on Suntrusts Q3-09 Earnings