"History is a wonderful thing, if only it was true"

Friday, February 13, 2009


From AP wire:
Wish I'd shorted this puppy when they lost my business

Fifth Third shares fall on stability concerns - Yahoo! Finance:

"Shares of the Cincinnati-based bank fell as much as 9 percent Friday, and recently traded down 6 cents, or 2.7 percent, to $2.14.

In a note to clients, senior analyst Kevin St. Pierre said more details are needed on how the government plans to administer its 'stress test' on banks with assets over $100 billion. This will determine not only if Fifth Third needs more capital, which he believes it does, but will also provide more insight on how much its shares could be diluted from further government investment.

As part of the government's overhaul of the $700 billion financial bailout package passed last fall, the Treasury Department has proposed a 'stress test' for the nation's largest banks to determine whether they can make loans on their own or need further government aid.

"Upon release of the details of the test and the minimum capital levels desired by the government, we will be better equipped to evaluate the viability of Fifth Third and the potential dilution involved with further injection of capital by the government," St. Pierre wrote. Until then, the bank is "un-investable," he said."

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