Financials Feel the Hate

 | Aug 23, 2011 | 11:50 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

fnfg

,

hcbk

,

af

,

pbct

,

hban

,

HAVNP

Stress in the system? Or just crazy valuations that signal nothing other than hatred of the financials?

I am talking about the remarkable declines in regional banks that had been relatively unscathed. The ones that seemed so conservative. The ones that should have benefitted from the big refinancing moment that Ben Bernanke engineered. The ones that shouldn't be in danger because of Spanish savings and loans (that's what the troubled ones are like) or Italian runs, or the ever-present derivative book of Societe Generale. I am talking about the banks that were supposed to take advantage of the chaos.

I am talking about First Niagara Financial Group (FNFG) and Hudson City Bancorp (HCBK), of New York Community Bancorp (HAVNP) and Astoria Financial (AF) and of People's United Financial (PBCT). I know that Hudson City, New York Community and Astoria have, at various times, taken too much risk on the investment side, with Hudson City really surprising people with its leverage, but some of these banks are taking out their 2009 lows.

In particular, I am struck by how People's United, so well capitalized, is in free-fall, and First Niagara, considered to be the bank that has most taken advantage of the craziness, is plummeting through old levels.

This retreat is about hatred of a cohort -- a hatred that knows no bounds -- that isn't necessarily linked to risky lending or a bad book left over from the bad days.

The negativity also affects reformed banks like Huntington Bancshares (HBAN), which has had endless insider buying.

Just another miserable portion of a terrible group, a dank corner in a dark building.

Columnist Conversations

No movement on interest rates this time. No surprise here, let's hear what Draghi says in less than half an ho...
Since the ECB cut rates at its most recent meeting, I'll be surprised if any new actions are taken this month....
HLF closed Wednesday trading at $43.63, down small with IV30™ down 3.2%. Conclusion HLF is down 40% sinc...
The Russell 2000 has led the broader market lower and today it returned to its 2014 lows, the bottom end of a ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.