Banks, WTF???

sbsquarepants

What's going on with AIB and BOI shares, they've been doing great and then plunged today for no apparent reason. Ideas?

Onikage

Sentiment?
NAMA?
Day traders?
The fact that they are, eh, were probably overvalued?

homer911

They were only down 5% for most of the day, then dropped with heavy selling in the last few hours

pirelli

sbsquarepants wrote: »

What's going on with AIB and BOI shares, they've been doing great and then plunged today for no apparent reason. Ideas?

Well Everything plunged FTSE/NYSE all the financials are down, but Deutsch bank has downgraded AIB And IRE from buy to hold, This was one of the very few analysts favoring BOI and AIB.

As you should be aware Moodies is reviewing our banks and S & P have downgraded irelands rating. This is what rocked the banks last week, however they were in a good position and retained their share price after a slight drop and AIB had a bullish technical outlook short term.I posted this in the AIB thread.

If the banks fail us then Ireland might suffer a further downgrade from Standard and poor which might severely damage our economy. I think it is now a good time for the Minister for finance and some bank heads to work out Nama and give some good news to bolster the share price and allow the banks to raise their capital through common stock. This would have a less of an impact on share price then hiding their heads in the ground.

silverharp

the markets have been turning over the last week , dollar up , commodities topping. Now that the US banks have managed to issue all their crappy stock Government Sachs and JPM can stop propping up the SPX. lol
The chaos in the bond market over the past few should be a clue that all is will not be well with equities.

ranger4

Also ECB statement saying eu banks are expected to post a 283 billion dollar loss by end of 2010 allong with the us and eu trying to re write bank regulation, plus nama, we are entering a uncertain period for stocks and without information being given investors are getting out, this could be start of pullback.

TTNYWWBM

The ECB (european central bank) statement is what caused the tumbling share prices! How stupid are the ECB? If the ECB didn't announce this utter pessimistic horse feathers it wouldn't have affected the market! What a self fulfilling prophecy! Now they can't put the fart back in the dog, the seed of doubt is in investors minds, even when the prices rally up again.

How are we ever going to get out of this recession – with 'over-thinking' negative twits prophesising doom? Anyhow this statement was about ALL 'euro banks' not just for Ireland, NAMA is addressing the major problems of BOI+AIB!

http://www.rte.ie/business/2009/0615/ecb.html

http://www.rte.ie/business/2009/0615/marketupdate.html

It's just a snowball effect pure and simple, stop loss triggering stop loss...

I hope this reactionary selling has been put to rest and investors realise now it's a perfect time to buy back in before NAMA! (IMHO )

silverharp

lets not forget "events" also remember the stress assumtions have already been blown out of the water



Capital One Financial Corp., the Virginia credit-card lender that’s returning federal bailout money, said uncollectible U.S. card loans rose in May.

Capital One wrote off 9.41 percent of U.S. card loans on an annualized basis, compared with 8.56 percent reported for April, the McLean-based bank said today in a federal filing. Loans 30 days or more overdue declined to 4.9 percent from 5.04 percent.

Charge-offs for international loans advanced to 9.77 percent from 8.91 percent, and auto finance climbed to 3.62 percent from 3.46 percent.

silverharp

the banks are a widows and opprhan short now as far as I'm concerned

Time Magazine

TTNYWWBM wrote: »

The ECB (european central bank) statement is what caused the tumbling share prices! How stupid are the ECB? If the ECB didn't announce this utter pessimistic horse feathers it wouldn't have affected the market! What a self fulfilling prophecy! Now they can't put the fart back in the dog, the seed of doubt is in investors minds, even when the prices rally up again.

How are we ever going to get out of this recession – with 'over-thinking' negative twits prophesising doom? Anyhow this statement was about ALL 'euro banks' not just for Ireland, NAMA is addressing the major problems of BOI+AIB!

http://www.rte.ie/business/2009/0615/ecb.html

http://www.rte.ie/business/2009/0615/marketupdate.html

It's just a snowball effect pure and simple, stop loss triggering stop loss...

I hope this reactionary selling has been put to rest and investors realise now it's a perfect time to buy back in before NAMA! (IMHO )

1. Increasing the share price of the banks is not the role of the ECB
2. AIB and BoI share prices will not lead us out of recession. Productivity will.

(Oh and NAMA will dilute your shareholding, have no doubt about that.)