Articles Written by:    VERNON HILL     

WaMu: Why Core Deposits Matter

If you want to understand the value to banks of having a strong core deposit base compared to reliance on wholesale funding, take a look at what Washington Mutual (WM) is lately having to pay on a one-year CD: a whopping 5%. That’s fully 135 basis ...

From VERNON HILL, Seeking Alpha,  2 Sep 2008
Related Topics: Washington Mutual, Inc.,  Bankrate Inc

What's the Deal with Wachovia's L.A. Plans?

Someone please explain to me the wisdom of Wachovia’s (WB) decision to open it first full-service branch in Los Angeles. It’s not as if the company has perfected the art of running branches in markets where it’s already tried to ...

From VERNON HILL, Seeking Alpha,  26 Aug 2008
Related Topics: Bankrate Inc

Sovereign Bancorp's GSE Preferreds: What Was the Company Thinking?

It’s far from clear what (if anything) that paper will be worth in the event of a government bailout—yet the company owns so much that a writedown to zero would cost it a year or more of normalized earnings—exactly what the company does not need right ...

From VERNON HILL, Seeking Alpha,  26 Aug 2008
Related Topics: Sovereign Bancorp, Inc.

Private Equity Seeks to Ease Fed's Bank Investment Restrictions

At the head of the pack is JC Flowers, a renowned investor in struggling financial institutions. The solution of its chairman, Christopher Flowers, has been to launch a fund under his own name - with no ties to his other funds - that would enable him, ...

From VERNON HILL, Seeking Alpha,  10 Aug 2008

The WaMu Mess: No Surprise Here

For sheer evaporation of shareholder value, it’s hard to top what the holders of Washington Mutual (WM) have had to endure. Over the last 12 months, their stock has fallen by 90%. Over the past five years, it has fallen 35%--annually. Yet incredibly, ...

From VERNON HILL, ETF Investor,  1 Aug 2008
Related Topics: Washington Mutual, Inc.,  TPG, N.V.

Fed to Ease Restrictions on Private Equity Investments in Banks? It's About Time

The rules as they now stand are ridiculous. According to current regulations, a U.S. investor that takes more than a 9.9% in a commercial bank is deemed to have a “control position,” which in turn means it has to register as a bank holding company. ...

From VERNON HILL, Seeking Alpha,  1 Jul 2008
Related Topics: TPG, N.V.,  Washington Mutual, Inc.

Why is Citi Selling a Product That Customers Don't Want?

I keep promising myself I’m going to lay off Citigroup (C) once and for all—then the company goes off and makes yet another idiotic decision, and temptation returns. Here we go again. Very Internet-sounding, I know. MyFi is short for “My Financial.” It’ ...

From VERNON HILL, Seeking Alpha,  18 Jun 2008
Related Topics: Citigroup

Citi's Old Lane Fiasco: A Perfect Illustration of Everything That's Gone Wrong

I try not to kick companies when they’re down, but Citigroup’s (C) experience with the soon-to-be late, lamented Old Lane Partners is such a perfect distillation of everything that’s gone wrong at the company in recent years, I can’t help myself. It’s ...

From VERNON HILL, ETF Investor,  17 Jun 2008
Related Topics: Citigroup

GE: Immeltdown?

Investors aren't taking kindly to the earnings miss General Electric announced Friday morning. The company reported 44 cents vs. 48 cents a year ago and a consensus estimate of 51 cents. The stock is off by 12% at this time; since Jeff Immelt took ...

From VERNON HILL, ETF Investor,  12 Apr 2008

TPG-WaMu Transaction Shows Lunacy in OCC Notion of 'Controlling Shareholders'

Why are bank investors different? Because of that regulatory idiosyncrasy, TPG has reason to be happy. The firm will not have to become a bank holding company, will not be hamstrung by the restrictions on ownership or activities that BHC status ...

From VERNON HILL, ETF Investor,  11 Apr 2008
Related Topics: TPG, N.V.

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