Brokerage ETF Should Climb, Thanks to Us
by Don Dion
I anticipate "better than bad" results in the next few weeks from U.S.-taxpayer-supported Goldman Sachs, JPMorgan Chase and Wells Fargo -- three of our better TARP recipients. These results could continue to power the iShares Dow Jones U.S. Broker Dealer ETF.
A Bank of America analyst upgraded Goldman today, on account of its trading revenue, despite the problem with its $400,000-per-year Russian computer programmer. The lack of competitors, due to the failures of Lehman Brothers and Bear Stearns, coupled with the huge wave of public capital-raising by U.S. and foreign financial institutions, should have powered Goldman's earnings in the second quarter.
Our taxpayer dollars have also lowered their cost of capital, and that should allow these firms to resume their huge salaries and bonuses. Nantucket and the Hamptons may be more crowded next summer.
Know What You Own: In Thursday's trading, the most active stocks include Bank of...
Jim Cramer
In Defense of Filthy-Rich Investment Banks
They had willing buyers for their proprietary products, and there was no deception.
MORE >>
Don Dion
Build On My Skepticism
The BAB could be a nice short-term play on growing demand for the Build America Bonds.
MORE >>
Rev Shark
Sudden Drop in Gold Causes a Wrinkle
Other than that, the market seems to be complacent to a fault.
MORE >>
With RealMoney You Get:
- Actionable ideas straight from
Wall Street to you
- A front row seat to the most authoritative financial forum in town
- Immediate access on your
iPhone or Blackberry
© TheStreet, Inc., 14 Wall Street, 15th Floor, New York, NY 10005.
