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Buy Banco Bilbao Vizcaya Argentaria (BBVA)

The draconian reform of Spain’s undercapitalized caja banking sector is shaping up as a major opportunity for Spain’s big international banks Banco Santander (STD) and Banco Bilbao Vizcaya Argentaria (BBVA).  The biggest opportunity lies with Banco Bilbao, I think,...

Update HDFC Bank (HDB)

Another day, another interest rate increase from an emerging economy central bank. On January 25, it was the turn of the Reserve Bank of India. The bank raised its benchmark repurchase rate to 6.5% from 6.25%. The Reserve Bank of India raised interest rates six times...

Sell Branco Bradesco (BBD)

This is a very tough call. If I owned more than one Brazilian bank stock, I might not sell Banco Bradesco (BBD) out of Jubak’s Picks today—but I don’t. If I had less exposure to Brazilian stocks in my Jubak’s Picks portfolio, I might not sell Banco Bradesco—but I own...

Update JPMorgan Chase (JPM)

Most of the time Wall Street’s attention is riveted on earnings per share. On January 14 when JPMorgan Chase (JPM) reported fourth quarter financial results before the stock market opened in New York eyes were focused on revenue. That’s because now that the economic...

Higher interest rates, lower bond prices–it's a new world

It’s a bond rout. On December 8, prices for U.S. Treasuries plunged and yields on the benchmark 10-year U.S. Treasury hit a six-month high of 3.33%. That’s a full percentage point higher than the October low. And it’s a shocking 0.76 percentage points above the yield...

Update JPMorgan Chase (JPM)

With banks it’s the spread that counts. And it looks like the turmoil in the financial markets is expanding the spread between what banks have to pay for funds and what they can charge for their loans. That should add to bank profits in the fourth quarter. If you’re...

And thoughts of bank dividends danced in their heads

One more test, and, if you pass, you can start paying dividends. That’s what the Federal Reserve told the 19 big banks that were the subject of the original stress test during the financial crisis. Financial statements and capital plans for the new test are due by...

Buy Banco Bradesco (BBD)

At the beginning of November I wrote that I’d recommend buying Banco Bradesco (BBD), Brazil’s second or third largest bank (depending on what you measure) if the bank’s New-York-traded ADRs fell to $20. Well, they just about got there yesterday, November 16, closing...

Buy Westpac Banking (WBK)

They have banks in Australia too. And a stronger economy and an appreciating currency against the U.S. dollar. And no government constraints on raising dividends if a bank wants to signal its confidence in the future. I’m going to use the weakness in Australian stocks...

Buy Citigroup (C)

In the long term, I’m not especially interested in owning Citigroup (C). I think the bank’s consumer banking business, once it’s strength, has turned into an also ran. Its capital needs forced it to put its Smith Barney brokerage business into a strange joint venture...

Update Banco Santander (STD)

The fire sale goes on at Allied Irish Banks (AIB). On September 14 the company announced that it would sell its holdings in two Polish banks to Spain’s Banco Santander (STD). The deal will raise $3.2 billion for Allied Irish. Bank regulators have told Allied Irish,...

Buy JPMorgan Chase (JPM)

Maybe you’re wondering why shares of JPMorgan Chase (JPM) were up 3.4% on September 13? The whole banking sector was up that day, of course, because the announced Basel III new banking regulations aren’t as strict as some investors had worried they would be. That’s a...