If Citibank Is Like GM, Which Bank(s) Are Like Ford?

[Median Democrat]

One thing I always here is the comparison between banks and car makers. If so, then there should be differences among the banks, as there is between automakers. Ford has a far better quick ratio than GM, which is why it does not need to draw on its bailout funds.

So, if Citi is like GM, my question, which banks are like Ford?

[Wapsie B]

1. If I'm not mistaken Wells Fargo gave their bailout money back.

[applexcore]

3. They were forced to take it.

Richard was pissed as hell about it.

[uponit7771]

5. Yeap, was told it was for "national saftey" or something like that but they cut their dividend and..

...that's why they got tagged with Citi et al.

IMHO, it was it was HUGE buy back time for them.

[Phx_Dem]

7. No, they haven't paid it back because they aren't allowed to

by the terms of the TARP contract, which Paulsen made them sign. But they did pay the Treasury a $371.5 million dividend on their stock purchase.

I'm not a fan of Paulsen, but I can understand why he didn't want them paying the money back too soon. FIrst, it has to be understood that Paulsen forced the 9 banks to take the TARP payment in Sept/Oct 08 in order to unthaw the frozen credit market. If the banks paid it back too soon, it wouldn't help the frozen credit market which was the whole point of buying the bank stock in the first place. Last I heard, the banks can pay it back when raise the same amount of capital; in Wells Fargo's case that would be $25B.

http://money.cnn.com/2009/02/02/news/wells.dividend.fortune/index.htm?postversion=2009020212

[GentryDixon]

2. Wells Fargo.

[uponit7771]

4. Fargo, JPM-Chase and a lot of regionals. They are holding the MBS's until maturity because they ...

...didn't buy into SubPrimes too much.

If you look at the ETF stock ticker UYG it's still around 10% of it's high (around 3.00 a share) if things recover in 2-3 years this could be at 9 seeing it trades the overall banking sector.

The banks aren't as beat up as everyone is sayin seeing the spreads are STILL wide (consumer credit rates are high) and they're getting some good refinance income. The banks that are holding their MBS's are the ones who are more stable, they have no reason to sell seeing they didn't get risky.

[Kurt_and_Hunter]

6. JPM-Chase. Wells Fargo is better than Ford