…But the depository bank deals keep happening!”, Excerpt from November 2015 Banking/Mortgage Industry Newsletter

“In other words, post-crisis banks are worth one-half to one-third of what they were pre-crisis, because the market now correctly perceives them as risky (given the leverage required for banking and the volatility in the asset values that collateralize loans….homes, commercial real estate, oil, etc.) and because excessive government bank regulation, compliance, arbitrary enforcement, and private litigation, have dramatically increased the risks and costs of banking and lowered investor returns on bank capital. Several of the Too Big to Fail Banks haven’t earned their cost of capital since the crisis. As a result, they are trading below book value (below 1.0X) and therefore should eliminate their dividend, shrink, and buy back shares. Any bank trading at book value per share or lower is not a financially viable bank, as the market perceives them as adding no value beyond the capital they have raised or earned through past retained earnings.”, Mike Perry, former Chairman and CEO, IndyMac Bank