Using Veritas to Construct the "Per…

29-04-2017 Hits:84612 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:79083 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:78930 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:83416 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:79980 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:82287 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:53261 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:81293 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:81294 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:81103 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:86955 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:84971 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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Washington Mutual announced a second-quarter net loss of $3.33 billion (vs $1.04 consensus estimate - an absolute joke to be so far off after nearly 10 quarters of losses in its mortgage department) as it increased its loan-loss reserves by $3.74 billion. Let me add that this loss was ex-items. I don't do ex-items without knowing exactly what the items are. Does this mean ex-another $3 per share in HELOC writedowns??? What the hell is an item. Remember, GGP tried to pack non-recurring income (lease cancellation fees)  into their net income as ordinary recurring income.  Beware of the fine print and footnotes. The stock is actually trading up after hours, as is Amex which just had a big consensus miss as well as a very bleak management outlook. Pushing up these weak stocks is very bad is very bad for our markets. It shows a lack of transparency and a severe disconnect from the fundamantels. A company has a big miss, it trades up, it beats estimates and it trades up, it issues bleak outlook and guess what??? It trades up.

The orginal Doo Doo 32 post: As I see it, 32 commercial banks and thrifts may see the feces hit the fan blades

  1. Doo-Doo bank drill down, part 1 - Wells Fargo

  2. Doo-Doo Bank 32 drill down: Part 2 - Popular

  3. Doo-Doo Bank 32 drill down: Part 3 - SunTrust Bank

  4. The Anatomy of a Sick Bank!

  5. Doo Doo 32 Bank Drill Down 1.5: The Forensic Analysis of Wells Fargo

 

  1. Intro: The great housing bull run - creation of asset bubble, Declining lending standards, lax underwriting activities increased the bubble - A comparison with the same during the S&L crisis

  2. Securitization - dissimilarity between the S&L and the Subprime Mortgage crises, The bursting of housing bubble - declining home prices and rising foreclosure

  3. Counterparty risk analyses - counter-party failure will open up another Pandora's box (must read for anyone who is not a CDS specialist)

  4. The consumer finance sector risk is woefully unrecognized, and the US Federal reserve to the rescue 

  5. Municipal bond market and the securitization crisis - part I

  6. Municipal bond market and the securitization crisis - part 2 (should be read by whoever is not a muni expert - this newsbyte may be worth reading as well)

  7. An overview of my personal Regional Bank short prospects Part I: PNC Bank - risky loans skating on razor thin capital, PNC addendum Posts One and Two

  8. Reggie Middleton says don't believe Paulson: S&L crisis 2.0, bank failure redux

  9. More on the banking backdrop, we've never had so many loans!

  10. As I see it, these 32 banks and thrifts are in deep doo-doo!

  11. A little more on HELOCs, 2nd lien loans and rose colored glasses

  12. Will Countywide cause the next shoe to drop?

  13. Capital, Leverage and Loss in the Banking System

 

In the mean time and between time, the WSJ has ran an article on the regional banks which featured quite a few members of the Doo Doo 32. See the excerpt below and reference the links to the right:

 Fifth Third said in June its net charge-offs would triple from last year's second quarter, and KeyCorp expected its charge-offs to be almost 10 times higher, as 40% of the loans in its $650 million commercial real-estate portfolio were expected to fail.

Fifth Third, which many had considered a strong Midwest bank, reported a net loss of $202 million, or 37 cents a share compared with year-earlier net income of $376 million, or 69 cents. The latest results included 42 cents in leveraged-lease charges. The mean estimates of analysts polled by Thomson Reuters were for break-even results.

The firm's loan-loss provision soared to $719 million from $121 million a year ago and $544 million in the first-quarter.

Net loan charge-offs, those loans the bank no longer thinks it will collect, rose to 1.66% of total loans from 0.55% a year ago and 1.37% last quarter. Non-performing loans, those in danger of becoming uncollectible, increased to 2.56% from 0.70% a year ago and 1.96% in the first quarter. For the year, Fifth Third sees charge-offs of 1.6% to 1.7%....

 

KeyCorp posted a net loss of $1.13 billion, or $2.70 cents a share, compared with net income of $334 million, or 84 cents a share in the previous year. The latest results included $1.01 billion in charge the company disclosed last month following the ruling involving leveraged leases. Analysts projected a loss of $2.57.

Loan-loss provision surged to $647 million from last year's $53 million and the first quarter's $187 million.

Net charge-offs increased to 2.75% of total loans, up from 0.32% in the year-ago prior, and 0.67% in the first quarter. Nonperforming assets were at 1.07%, up from last year's 0.41% but down from the first quarter's 1.38%.

Looking forward, KeyCorp expects net loan charge-offs to be lower than the second quarter for the second half of the year, coming in between 1.2% and 1.6%...


SunTrust Banks Inc. posted a 21% decline in second-quarter net income as credit-loss provisions surged, though they dropped from the first quarter.

The regional Atlanta-based bank -- hard-hit by the real-estate slowdown -- reported net income of $540.4 million, or $1.53 a share, down from $681.4 million, or $1.89 a share, a year ago. The results included net gains, including from the sale of Coca-Cola Co. stock, which boosted results by 75 cents and 41 cents, respectively. Revenue rose 9.4% to $2.6 billion. The mean estimates of analysts polled by Thomson Reuters were for per-share earnings of 64 cents on revenue of $2.13 billion.

SunTrust boosted its provision for loan losses to $448 million from $104.7 million a year ago, but down from $560 million in the first quarter.

Net charge-offs soared to 1.04% of total loans from 0.30% a year ago and 0.97% in the first quarter. Last month, SunTrust reiterated its expectations for net charge-offs to rise 15% to 20% from the prior quarter. Nonperforming loans surged to 2.22% from 0.64% a year earlier and 1.67% in the first quarter. Net interest margin increased to 3.13% from 3.10%...

 

Regions Financial Corp. posted a 54% decrease in second-quarter net income as the Southeastern bank cut its dividend 74%.

The quarterly dividend is being shaved to 10 cents a share from 38 cents in a move the company said will "further strengthen its capital position." Region's dividend yield was recently around 20% and many analysts were expecting a reduction. Goldman Sachs recently listed the bank as the one most likely to cut.