Posted on 07/15/2008 6:54:49 AM PDT by janetjanet998
NEW YORK (Reuters) - U.S. Bancorp (NYSE:USB - News) posted a larger-than-expected 18 percent decline in quarterly profit due to mounting housing-related credit losses, and said that tough economic conditions will cause bad loans to increase further. The results, from a bank that has avoided the massive credit losses afflicting many rivals, do not augur well for the rest of the nation's banks,
(Excerpt) Read more at biz.yahoo.com ...
If USB is like this then most other banks with are in deep Sh*t
Banks made money by extending credit on mortgages and credit cards. Party ended. Hell to pay.
That is about it.
they are crushing the banks, and the dollar they want to bring in the amero.
Wamu lost 30% yesterday.
When will people here on FR get it through their heads that the assertion that this “would not spread beyond sub-prime” is so much nonsense and twaddle?
The “it won’t spread beyond sub-prime” has been proven false by mortgage stats as of this past spring. The evidence that prime paper would be affected has been available for months.
So this isn’t a surprise - or it shouldn’t be.
At some point, some event will finally crystallize and focus people’s attention on the problems of the financial house of cards that is the US and the Bush cheerleaders here on FR will finally “get” it — that the Bush administration is a year late and a trillion dollars short. The economy isn’t fine, and it doesn’t matter what the cooked government stats say: when the debt markets melt down, the macro-econ indicators soon won’t be able to hide anything.
The GOP could have been out in front on this issue, if only they’d been willing to quit putting their fingers in their ears and chanting “the economy is fine! Unemployment is low!” and other such nonsense.
Total credit would need to contract from the current 40+ trillion by 5 or 10 trillion to get back in the reasonable range. The contraction of a trillion or so has been too painful, so the Fed is trying to prolong the binge instead. It won't work since we have no ability to pay (out of 14 trillion but stagnant GDP)
So, are we talking total economic collapse?
“Banks made money by extending credit on mortgages and credit cards.”
...and not only that they gave credit to illegal aliens and felons who ran up the tab even more.
We'd expect a slight reduction in a banks profits given the current economic environment anyway. Just wait until Schumer or someone connected starts screaming bailout and you'll see how badly the banking industry is politically influenced. If the Arabs ever pulled all their assets out of the US financial system we'd be hosed big time. I'm starting to wonder if Howard Ruff was right about keeping old silver coins on hand. At any rate when you have a system based on faith, you better pray, and pray hard!
Gosh, Maybe you should run for office, you seem to have all the answers.
USB was supposed to be that bank...very consrvative to whom they lended money too...that’s why Buffet and many other bought it becuase it was “a good bank getting dragged down with the subprimers
its the nations 6th largest
The investors and the borrowers should both get what they deserve, and it is not a bailout.
I believe it was under Clinton that Fannie and Freddie ramped up their alt a and sub prime lending. Franklin Raines, Jeannie Gorelick, and The Messiahs VP vetter Johnson all made fortunes working for Fannie and Freddie. The Dems required banks to loan to minorities who were not otherwise credit worthy or risk being publicly humiliated.
Both parties have blame here, but the two catalysts are the total lack of lending standards by the banks and the lack of ANY energy policy. Energy=prosperity. If gas was a buck a gallon, the economy would still be rolling along, but the dimwits in Washington have kneeled to the Branch Algorians and their enviorwacko/marxist allies to ruin our country. The ethanol whores at ADM have driven up our food prices, Nancy Pelosi and Harry Reid shold be impeached for refusing to allow us to access the resources we need to power our economy. Everyone in washington is to blame here, not just the GOP.
No. Please people, get a grip.
Karl, check out the following link to find banks with good ratings:
http://www.bankrate.com/brm/safesound/ss_home.asp
best of luck to all,
Stonewalls
We ALL know that if things get bad, we’ll get another rebate check from Uncle Sam, to pump up and stimulate the economy. Bail outs, are expected, no one has to live or plan wisely, because Uncle Sam will ALWAYS be there...
Who is they??
Yup, to paraphrase Jeremiah Wright, America's chickens (no energy policy) have come home to roost.
Did you buy Howard Ruff’s newsletter in the 80s when he was telling people to buy gold?
The bank is still making profits. Take some smelling salts.
Crikey! I can't believe people are buying into all this horse-hookie...
I'm always happy to gain a profit!
Besides,Bancorp has been shady dealers for years.
Thank goodness the wife and I decided we had enough a couple of years ago and moved on.
All of the ECONOMIC DOOM & GLOOM is a ploy by the liberal media, and their puppet masters in congress to create a stepping stone ("see where voting republican gets you") for their damned agenda. Those traitors should all be shot.
I thought conservatives were optimistic and not “the sky is falling” crowd.
Wells Fargo is predicting 5-8 year recovery. At best.
Yeah, I know, I was just poking a little fun at the headline on this thread, “very, very, very, very, very, very, very, very, etc. bad......
Not only being vulnerable to Schumer’s rumor mill, but my question is this: How much of this housing/mortgage/loan crisis is bring caused by banks and other financial institutions being forced by the government into making bad loans on the basis of some sort of threat of discriminatory lending process?
I think Warren Buffet is an asshat anyway.
18% reduction in profits. What does that mean? It sounds like they still had profit, so this actually does not sound like terrible news, in comparison to WAMU and others that are taking significant losses in the same period.
US Bank and US Bancorp are separate entities.
By that time thanks to the non-energy policy of the democrats, the Arabs will own the country and we can look to them for our bailouts.
Careful. You’ll be called a racist. A while back I posted information about the pressure put on banks to loan to minorities. A number of freepers denied it, although I had friends in the banking industry who experienced the pressure first hand.
.gov* will bail them out
*that means us.
No, there seems to be no point. People don’t want leaders that tell them “You’re going to have to spend less and engage in thrift and enterprise.” They want to be told that they can spend money that isn’t theirs until the cows come home.
People don’t want to be told that they cannot afford that house. People don’t want to be told that they have to put down 20% on a house to get a note. People don’t want to be told that they have to pay their debts. People don’t want to be told that you can’t ‘get rich quick’ - because only the first few people in that line actually stay rich.
Clowns on Wall Street don’t want to be told that regulation in the markets is actually a good thing.
Bankers don’t want to be told that there are large numbers of people who, in fact, don’t and won’t repay their loans, and as such, these people are horrible credit risks.
People don’t want to be told the truth. Right here on FR, we have a crowd of Bush cheerleaders who seem to want to believe every headline economic number without reading into the actual data and noticing that “Hey... this isn’t quite so rosy as the headline number makes it sound...”
So you get what we have here: a mountain of financial lies and self-deception that builds up until it collapses under its own weight.
The GOP, if it had some people within its ranks who knew how to look at the data (instead of a bunch of mindless cheerleaders), could have looked at the indications in the debt markets last year, and have done some intelligent things. But no, we have Paulson, who now has squandered any and all credibility that the Bush administration ever had on economics and finance. Paulson, for all his supposed expertise on Wall Street, is a clueless clown.
Just go back over the last week, pull all the things he said about Fannie/Freddie and string them together. He’s flip-flopped his positions about four times in the space of a week. The GOP would be ahead of the game with a SecTreas who had only one position in the space of a week.
Goodness, I just recommended USB to someone yesterday, relative to other choices. Shows how all the ships sink with the receding tide.
Oh, I completely agree with you: the DNC is utterly complicit in this melt-down.
Notice how the GOP and the Bush admin don’t say a word on the Democratic malfeasance at Fannie/Freddie, how they don’t (and won’t) harp on the absurd bookkeeping inside these outfits, and how they’ve been used as posh political appointment jobs?
This is another example of how “nice guys” like Bush don’t win.
The GOP could have been doing something with the information that would *at least* allow them to say “Look, see? We actually know our stuff on the economy... vote for us” but instead they choose to look as clueless as the Democrats.
I don't think the Community Reinvestment Act (and other) requirements for lending to bad risks isn't a major cause for the current problem. Yes, it is stupid to have to lend to someone because his grandfather may have been discriminated against, and more likely the CRA is used to give sweetheart terms to politicians and community activists so they don't file complaints instead of lending to those the law was supposed to help.
However, the CRA didn't force banks to give half-million, no money down, no documentation of income, interest only loans on property with completely fictional appraisals in a bubble market. It seems like many/most banks got into a race to see which could give the worst loans. I want to find a bank which said early on "This is stupid. We might make money this year, but we'll lose much more when this collapses. 10% down and not a penny less!" because they are more likely to be responsible with my money.
actually at 22/share the yield is at 7.78%
Why did you choose that specific phrase?
Carolyn
Why use a negative when you can use a double negative to obscure your meaning. I meant "I don't think the Community Reinvestment Act (and other) requirements for lending to bad risks were a major cause for the current problem."
Never get distracted in the middle of an edit.
Because global warming is much like the Branch Davidian religous cult and Al reminds me of David Koresh. Thus Branch Algorians.
USB is the stock symbol for US Bancorp
Bookmark
I guess you can call me a cheerleader, because I blame the dims and their environmental friends for their actions of the last 60 years that have gotten us into the situation we now face.
They called it ‘redlining’ I believe. The gov’t was only to happy to eliminate the ‘discrimination’ in lending by eliminating standards altogether. Liars loans, interest only, no doc, etc were all a result of the effort to make this the ownership society.Our chickens are indeed coming home to roost.
In the 80’s I was in the Coast Guard having enough trouble buying cereal for the kids much less gold. However a Warrant Officer I knew bought gold at $800 in 82-83 IIRC and it went to $300 right after that. Gas was $160 in at the Navy exchange in Pearl Harbor. Ruff supposedly backed off on the survivalist nature of his recommendations later but you never know.
Usually, I'm pretty adept at long division. However, I was using the numbers provided at:
http://finance.yahoo.com/q?s=USB
Yeah NVDave, you know it all, you got the answers now go get elected.
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