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A slew of big bank earnings out today and my next guest says this is the year of transition for all the banks.
Are aliens -- banking analysts that he -- company highbrow art.
That's good as they are you today well this got to be encouraging if you look one year ago.
Yeah probably we're losing billions of dollars everybody was terrified that that you would take a spoon dig a hole -- hiding it I mean just awful and now these banks are making money but.
Some are still losing some money.
What do you think emerges as far as -- little group of winners here.
Well -- we have -- minded.
Some of the banks were were more burdened.
Coming into this year with accumulated problems.
A lot depends on how strong their -- are -- markets are but I think we're we're gonna continue to see some performing.
Better than others.
You know wells I think is certainly looking up US Bancorp.
Is is another and getting -- we look at -- city in the Bank of America and there are they're struggling.
But that's really not a surprise to their problems were deeper to begin with.
-- Bank of America missed estimates plus they're trading revenues plummeted and they have elevated credit costs and that certainly is -- is disconcerting and it makes you wonder you know it is as we face another drag on and on some of these names as it pertains to the employment or unemployment picture is -- work.
Windows Bank of America swing to a profit.
Well of course -- things with with all the all the banks and Eddie is it trading revenues are not going to provide.
The profits that they have over the last year volatility is so declining.
And so then it's a matter of you working through their credit problems.
-- -- of course have a couple two special challenges one is the continued integration of Merrill Lynch.
And that any other courses dealing with their mortgage problems particularly -- those they inherited from from countrywide.
But I think all the big companies are are making headway some just have further to go B of -- is one of those but I think.
That in 2010 we will continue to see improvement pretty much across the -- Or -- there's improvement with Wells Fargo they swung to a profit whereas a loss of a -- was expected they gained eight cents per share.
That there are people who pick apart this balance sheet our -- McDonald among -- says.
Watch out there are still some treaty toxic.
Little hidden bad viral worms that are running around in the form of a lot of these mortgages that may still fail.
Well that is certainly true.
A -- -- lot of exposure to California.
And some of those markets are stabilizing and starting to.
Come back so again there's a lot of uncertainty here in you know we're gonna see that.
And of course a problem it is is coming on horizon for many banks and that is a growing problems in commercial.
A real estate.
If the unemployment rate stays high.
That now he has an impact -- commercial real estate but also on credit cards.
And on prime mortgages and -- here comes the feet proposal from the Obama administration where he would impose fees on some of the banks.
Does that get wrapped big -- Texas I called the big bank tax big -- And then the big question is.
When would this take effect.
We just congress even going to -- that's -- -- populist appeal.
But I'm not convinced that it's going to happen or -- it does.
It'll be a much more limited tax and they're being talked about the problem we have today is.
We don't know much more than just a few bullet point -- run a fact sheet that the White House position.
Are really good to see it thank you for keeping your eye on it for us.
Glad to be here birdie -- -- with alien company.
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