They are going to be the sacrificial lamb of the stress tests. The large bank numbers will look cheery but we all know they are in the most trouble. However, to have some validity to the reports the government will allow some regionals to fail.
Yes to consolidate the banking sector, to allow the real crooks of GS and JPM to pick over the carcasses of the dead regionals.
HCBK look strong. No exposure to subprime, all loans past have to have money down. And they check for income vs affordable loan. I maybe want to buy some of this stock for a long term. Opinions?
How I speculate for HSBK is maybe they will make good profits with jumbo loan in the future, when people who have money go to buy big houses that fall in value from 2 year ago. HSBK can offer good competitive interest rate because of good cash on their balance sheet.