I have a totally different take on ths situation, I believe the FED will start putting more emphasis on the inflation portion of the duel mandate.
It seems to me Janet Yellin came in talking alot about the underemployed but in the future will pull back on this half of the duel mandate and rather emphasize inflation.
WPD, yes you are right.
When the treasury handed out the TARP money, they would not allow the banks to pay back TARP nor payout a divi until the FED was comfortable with their balance sheet. Some time thereafter the FED started allowing them to payout a dividend, however the FED made it known (through the media) to the public that the payout ratio would not be allowed to go above 30%. After a couple of years of that the FED made it known to the public that a bank could go over the 30% payout ratio but if they did, it would incur a much more stringent look into their balance sheet. At the time it was commonly thought that no bank would go over the 30% because no one would ever want to draw the FED Reserve' ire. However Wells Fargo very soon after starting pushing the envelope.
As the years go on, I totally expect them to (once again) reach a normalised 40% to 50% .
In fact, I will go out on a limb to say that I forsee a future where Wells is a boring old stodgy bank with very little growth that pays out 60% of its income to its shareholders
Dividend will be increased around the first part of April for a .40 dividend at the June 1st date. Up .05 per quarter or .20 higher annually. All in it will be $1.60 then.
Come on, Jerry. You're incapable of forming your own opinion. You copy and paste everything. Good luck with your "slight net short" by the way.
Lizard, that would be a matter of opinion, and you know what they say about opinions. I would agree that you might have a slight edge on your best pal Gus.
My posts are always a bit better than your s you turkey:)
Lizard, if you ever happen on news worth posting you are late. I was posting that yesterday on another board. It does help your ego I guess. Say hello to Gus when you two chat tonight.
Regulators Give Passing Grade to Wells Fargo Plan on Bankruptcy
Fed Says Big Bank’s Bankruptcy Plan Is Better Than Peers
Ryan Tracy And
WASHINGTON—U.S. regulators said Wells Fargo & Co. has convinced them that the financial system could avoid serious damage because the bank is about to collapse, giving it a passing grade that ratchets up the pressure on other big banks slammed for producing unrealistic bankruptcy plans a few months ago. Happy Thanksgiving you turkeys:)
I just realized that the dividend is above pre-crisis levels. Yet the payout ratio is lower. Are new capital requirements preventing them from increasing the payout ratio?
The Federal Housing Finance Agency , regulator of Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, gave the green signal to both the housing mortgage giants to offer the homeowners of foreclosed properties an opportunity to purchase their homes back at lower prices.
Under the FHFA’s prior guidelines, Fannie Mae and Freddie Mac could sell the foreclosed properties back to the homeowners at the outstanding mortgage amount. There was no respite for the borrowers earlier. Only new buyers could purchase the properties at market prices.
Under the new policy, the opportunity to repurchase home at the current market price has been extended to the former homeowners as well. However, this modification is applicable only on the 121,000 single-family homes owned by Fannie Mae and Freddie Mac as of Nov 25, 2014. Moreover, certain properties may be prohibited from being included under the revised policy.
The FHFA has been working actively to encourage more lending as well as accelerate the housing market recovery. Last week, it revised rules to bring more clarity in the process of buying back loans sold to these two federal mortgage finance agencies. This is expected to transform lenders’ perception of risks involved in repurchasing loans.
The latest move will help in stabilizing property value as well as decrease the number of vacant properties with rising number of prospective home buyers, lured by the lower price incentive.
The FHFA’s policy shift will be appreciated by the homeowners as well as democratic lawmakers, who stress on the need to liberalize the FHFA policies in favor of troubled homeowners. On the flip side, some people may take undue advantage of these relaxed policies through surplus borrowing, which will likely strain the financials of the mortgage agencies.
Although percentage of those participating in our national workforce points to weakness in our economy,
The percent ratio of initial unemployment claims to civilian workforce is at .18% which is the lowest its ever been. (Actually the graph I looked at only went back to 1965)
this stat speaks to the initial claims number should be seen as low relative to the size of our work force. The 4 week average of 294k is near the 1999 numbers, the thing is that since our work force is larger than it was back then, that is why we get such a historically low .18% ratio on claims versus workforce.
Wells Fargo & Co. WFC, -0.41% economists on Thursday predicted holiday sales will increase 3.9%, compared to last year. The economists predict that despite a shorter holiday season this year, the increase in sales is based on an increase in consumer confidence, continued employment growth and lower gas prices
Read More: beatpennystocksDOTcom
And speaking about other people who have been constantly wrong, how long has Jim Cramer been on TV? Has he ever been right since about 2006? Not that I know that much about his track record before 2006. I just ignored him before then!
ck4dui - not a lot of supporting reasoning in your comment. Say, you aren't Mike Bailey now are you?
US stocks are expensive. No question about it. I think implied returns for the next 7 years are somewhere between -2% to +4%, but there are still decent opportunities.
I read a convincing analysis of Buffett's investment style a year or two ago. The premise was that he targets 10% annual returns for the stocks he buys, and that based on a set of metrics, he would buy WFC until it hit $52 a share. Which is close to how it played out in real life. I think he stopped buying around $48.
That's still pretty encouraging. If WFC was a buy until $48, implied returns at $54 are no longer 10% a year, but 7-8%% ain't too shabby.