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-- Financials we're gonna drill down here so today from the -- we heard no higher rates no QE3 not -- X prize to anyone really.
So what's the impact if you are investing in banks stocks right now I'm casting I was here -- like Charlie.
I -- some say there's no story.
No QE3 no help in -- putts but there is a story it is winners and losers on this fed policy and it's pretty interest being outspoken analysts today.
Look at the banking sector and there's been a lot of negative stuff going on there are out there about the big banks about the city groups JPMorgan how do you today.
Those are and you see -- right there the winners here why are they the winners when you keep interest rates at zero.
Basically lower their borrowing cost what does that do well all these banks have what securities firms.
The eBay owns Merrill Lynch Citigroup has its own securities themselves -- musical -- -- Barney.
And I JB Morgan has its own you know really brokerage business you know securities business if you can borrow at zero.
You could buy treasury bond that very you -- trade.
You can make some money and that's why all those big bank stocks are up.
It's really -- for the regional banks and when you talk to analysts took that a major Reynolds out -- guys like Mike -- Who -- who know a thing or two about regionals they all have -- ratings every -- why is that.
When you keep interest rates at zero -- for them to make money on their bank deposit it's a very scary situation.
If you're regional bank and -- -- yet people don't -- lay -- -- at the big securities firms we have 0% interest rates.
Well why would you be laying people off when they they're gonna that the securities firms parts of these banks are gonna make money it's almost impossible not to.
But at the same time it's easy to make money so why you need all the experts only on -- trading -- I mean they're not taken very much risk -- -- -- less risk so buying treasuries because you're buying -- with money that well it cost you nothing is easy.
There is something known as scale and not only that you do deals and you'll see deals and -- tea.
I know there's a lot of negative about the about the big Wall Street firms but in a very low interest rate environment it is being in -- -- it's almost.
It's almost a universal sort of law that.
Those firms do very well now there's other things stored on capital requirements about three and all the -- Dodd-Frank implications yeah that's bad.
But when you have 0% interest rates they'll point you pointed this sort of -- -- here in one deal member of what the banking are operations of RBC a that was Monday to announce -- deal.
They bought that and this came out in the annals -- Mike -- brought it up big what that for something like ninety -- percent.
At a book about silly boy it below enjoyable book value that is -- -- -- just shows you those -- operations are not make a lot of money in a low interest rate environment.
You can get you know those those regional banks bank operations are not worth as much interest in net interest margin is net interest margin skis and his Barley to -- island land long.
Every fan it's it's it's kind of makes sense it makes sense and so it was and -- -- saying that means we're gonna have a miss the pirates real Wall Street as you know.
The -- refers people talk about -- I don't think they're going to be severe some of those other reports.
Low interest rates and nothing coming out of -- I mean this is kind of a non story.
We'll see what would -- what kind of questions here -- -- gets asked.
You know -- he get another Jamie -- moments and someone really breaks his chops and says.
-- -- about banking regulations how that's hurt the economy maybe get some like that maybe opens up a little -- but barring anything.
Like that coming out of this press conference I to say there's nothing much here.
Our Charlie I guess we'll have to see far south now thanks as always.
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