I am starting to become a bit concerned about management's strategy of shrinking the company's balance sheet along with its lending operations to keep its capital ratios in line. What effect might that have on its market share of mortgage originations when they finally turn decisively up?
In this environment for Fannie Mae and American International Group (AIG - commentary - Cramer's Take), I should note that the most bearish loss estimate for IndyMac has $1.1 billion in higher loan losses to be sustained over the next two years, resulting in a $4.25 per share loss in 2008 and a 10 cents per share loss in 2009. While this analyst sees the company remaining adequately capitalized under this scenario, investors should note that the timing of that loss estimate between the two years could have a substantial effect on the IndyMac's capital ratios.
Banking UBS Preview: Split Personality Disorder 5/5/2008 8:48 AM EDT Analysts expect a deep bottom-line loss of 4.64 per share on a revenue loss of $2.39 billion.
Banking Mixed Bag From BAC 4/21/2008 1:35 PM EDT The company reported earnings of 23 cents per share on $17.3 billion in net revenue.
At the time of publication, Thomas had no positions in the stocks mentioned.
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