What I Meant To Say Was-- BUY INDY


Ladenburg analyst Dick Bove has been strong armed, probably by the person who called him insane, into clarifying his outlook concerning the state of banking. Everybody just calm down, because nothing, apparently, is fucked. Not really sure where you got that idea from.

The main thrust of this report is that the banks are in better condition than is generally perceived. Firm says apparently, it has been misinterpreted to suggest that there are significant problems in the financial system. This is not firm's point at all. To reinforce this, firm produced 2 ratios which indicate the percentage of non-performing assets in the system compared to loans outstanding and capital defined as common equity plus reserves. These ratios indicate that the stress on the banking system at present is substantially less than it was in 1990. Additionally, information was produced to indicate that capital is rising in the banking system and that reserves have been increased in the past 2 years. Firm says no bank under their coverage is in this danger zone, although Washington Mutual (WM) is on the edge. Firm is definitely not suggesting that National City (NCC), or First Horizon (FHN), is in dangerous condition at the present time.

Confidential to Dick:

You're better than this. I know tensions are flaring but you need to stay strong. Stop responding to the misreading of anything you say, write, or do, no matter how batshit insane flipping out on Citi like the fifth cast member of Sex and The City, or nominating Phil Purcell for CEO of Wachovia, may seem to lucid-minded individuals. It's a slippery slope from releasing a statement clearing up what you intended to convey in an earlier report to responding to the misinterpretations of anonymous 'guests' on 2-bit blogs at three in the morning (if it's already come to that, I don't want to know).