In this June 2 Bloomberg podcast [MP3] — David Goldman, senior portfolio strategist at Asteri Capital, explains why the KBW bank index continues to fall towards the basement. And the significance of the collapse in the shares of Britain’s Bradford & Bingley Plc. forecasts what is likely coming to US banks as they scramble to recapitalize their exploding balance sheets by going to the equity markets.
The KBW Bank Index is a modified cap-weighted index consisting of 24 exchange- listedand National Market System stocks, representing national money center banks and leading regional institutions.The index is intended to reflect the evolving financial sector and was developed with a base value of 250 as of October 21, 1991. Effective March 22, 2004, the index had a 10:1 split.
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