My only concern is how do with know the author is right about their mortgage exposure. It's not always easy to find out what the bank has.The banks might mention this in their SEC filings which are assumed truthful lest they risk charges of fraud. One stock I own and has taken a beating is Umpqua. They state they have no subprime exposure but they have invested in housing development (subdivisions) which are ,as a result of the current mortgage "crisis", having problems.So they dont specifically need to have subprime loans to be having a profit crunch. My guess is that most regional banks have conservative lending practices and dont mess with low quality borrowers. But they can still be affected by the current crisis. The big difference is that the subprime borrower puts up 0% of his own money and the responsible or credit worthy borrower puts up 10 - 50% of his own money.
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