This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Banks Trail the Market: Financial Losers

Reuters reported on Friday that Bank of America was considering additional assets to boost regulatory Tier 1 capital. The recently announced that its moves to issue new common while retiring preferred shares and long-term debt would increase its Tier 1 capital by $3.9 billion.

Interested in more on Bank of America? See TheStreet Ratings' report card for this stock.

Tuesday's winner among large U.S. banks was People's United Financial (PBCT - Get Report) of Bridgeport, Conn., with shares rising 1% to close at $12.84.

Based on a 16-cent quarterly payout, the shares have a dividend yield of 4.95%, which is a very aggressive payout for the company, which is trying to leverage excess capital.

People's United was included among TheStreet's 10 Large Banks With Very Strong Capital, with a Sept. 30 Tier 1 common equity ratio of 15.00%, according to SNL.

The shares look expensive in the current environment, trading for 1.5 times tangible book value and 15 times the consensus 2012 EPS estimate of 85 cents, among analysts polled by FactSet.

Interested in more on People's United Financial? See TheStreet Ratings' report card for this stock.

Shares of MetLife (MET - Get Report) rose only slightly to close at $31.20, even though the life insurer took a major step as part of its plan to lose its designation as a bank holding company, through its deal to sell most of its MetLife Bank subsidiary to General Electric (GE) unit GE Capital.

While the deal certainly looks like a good one for both companies, since GE Capital is looking to expand its deposit base and MetLife's banking business provides such a small boost to its revenue, it appears that even after MetLife completes its exit from the banking business by selling its mortgage origination operations, the company will still face Federal Reserve scrutiny, as outlined in the regulators proposed rules to strengthen its oversight of large banks and other "systemically important" financial services companies.


-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $15.69 0.00%
MET $47.48 -0.65%
MS $32.31 0.06%
PBCT $15.74 0.03%
AAPL $111.53 0.68%


Chart of I:DJI
DOW 16,821.12 +44.69 0.27%
S&P 500 1,982.91 -4.14 -0.21%
NASDAQ 4,751.7290 -29.5350 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs