Very unlikely that it's going to be clear sailing to earnings as the situation in Europe will go up and down. Think the market will rally when the first bank reports, jpm even though their trading and investment banking income has been rotten. Think they will offset the downturn with the sale of treasuries and mbs gse securities, booming refinancing profits, continued credit improvement.
Loans for the 3rd qtr. have continued to grow although at a 1 to 2% annualized pace. Credit metrics continue to improve so the ALL should continue to drop. This is not a sign of weakness as long as delinquencies continue to improve. Last qtr. bbt's provision still equaled around 120 bsp which is twice it's normalized level. I just hope King is finished hitting the P&L with a quarterly charge of around $150 million - valuation allowance - primarily because the mark on oreos has been grossly inadequate. I think we're going into year number 3 on this subject. Pretty tortuous. Also, hope he sells most of the $23 billion of investment securities which were yielding 1.69% at 6/30/11. Shareholders should absolutely not have to bear interest rate risk. Treasury yields at this point can only go one way and to get locked into 90 bsp yield for several years is absolutely criminal. We'll see. That's my 2 cents.