UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Hawkwin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1977282  
Subject: JPM < BAC Date: 10/3/2012 9:27 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
In light of the recent fraud suit against JPM over Bear Sterns, I thought it might be wise to take a look at the other players in this bucket of unprotected mort securities.

So far, the JPM stock price has not been harmed by this but that is because they continue to have a much healthier balance sheet. JPM also bought WaMu which likely had the same problem as Bear so there is probably another suit in the future for JPM.

In contrast, I think the biggest concern for all players is the purchase of Countrywide (the largest and probably worst player in this market) by B of A. The balance sheet of BAC is much worse than JPM so the likely suit to be brought against BAC could smack their stock price for double digits. Countrywide sold over $400 billion in such securities during this time - twice what Bear Sterns did - so the suit against BAC could top $50 billion which is half of their market cap.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement