Not bad, dropping just 2% when the Bank of Prince had a decline of over 57% and has to be helped out by the competition to keep his head, and indeed the health of the entire financial system and the economy, above water. Reason I own this stock and not C.
Some quote I saw last week from Prince published in Kiplingers or Smartmoney, in which he said back in early d something like the "the dance shows no sign of stopping, and as long as it went on, what me worry??" Of course, that quote was just days from the subprime blowup. Nothing like having a CEO in touch with the risk inherent in his business.
What's interesting here is that the earnings disappointment is not generally from charges associated with mortgages like WFC and others (USB has a small and relatively low risk portfolio). USB's problem is that the miss is coming from increasing operating expenses. They're already the cheapest place going (poor facilities, low wages, 1% merit increases, aging technology infrastructure). Don't see any way they're going to be able to reverse this trend. They have years of deferred maintenance and expense that is coming home to roost. Oh well, they'll just have to invent some new fees to try to offset it.