That is a problem. You dont know. Banks have tons of accounts and they all have different balances with different interest rates. Some checking accounts might be paying just .20% right now and 5 yr Cd might be paying 3-4%. The FDIC insurance and state banking regs require an amount of cash to be on reserve to protect against a run on the bank and other assets to invest. This whole thing about betting the bank is dumb, but they should have invested short term. The thought they did,,,the MBS is avg life of 3.5 years. They made a mistake. It was a bad move, and they should match deposits with loans. Banks make money off spread of the invested funds and the borrow funds.
NYB is fine and I will just wait for all this bull crap to blow over.
I bought NYB today but I am not confident in my grasp of its degree of undervaluation.
Other than the fact that it is down big time in price, and selling for a reasonable multiple of earnings, based on earnings without impairments, what is the case for NYB vs. say BAC or any other bank selling at 11-12X?