BOA CEO said this in the conference call. Here is the quote from WSJ.
Lewis said that, overall, "we believe we may have peaked in total credit losses this quarter, although the levels going forward will continue to be elevated and certain businesses will still experience higher losses."
As the unspoken truth, when a publicly listed company make a comment about their future, they will try to paint a colorful picture. If there is a downside in their speech, they always try to use a benign or non definitive words to cover their own "back hole" so they don't get caught lying to the public. The whole purpose is to prevent a massive selling of their company stocks.
This comment sounds like this to me.
"We are still experiencing high losses this quarter and anticipate the future quarters will be the same, give an take a few percentage. Some department will see higher losses but some with less. But overall, don't expect the loss will reduce significantly in near future."
I just don't think using the peaked word makes much difference. Loss of 2 bil and 1.95 bil are about the same to me but this can be a big spin by media saying the loss is reduced.
So folks, financial sector is still very bad and still on life support except a few big companies such as Goldman Sach which manage to steal money from government with out a obvious trace. If BOA suffers losses, other companies can't be far away. It is just a matter of telling the truth. 2010 will be interesting to see.
BOA CEO said this in the conference call. Here is the quote from WSJ.
Lewis said that, overall, "we believe we may have peaked in total credit losses this quarter, although the levels going forward will continue to be elevated and certain businesses will still experience higher losses."
As the unspoken truth, when a publicly listed company make a comment about their future, they will try to paint a colorful picture. If there is a downside in their speech, they always try to use a benign or non definitive words to cover their own "back hole" so they don't get caught lying to the public. The whole purpose is to prevent a massive selling of their company stocks.
This comment sounds like this to me.
"We are still experiencing high losses this quarter and anticipate the future quarters will be the same, give an take a few percentage. Some department will see higher losses but some with less. But overall, don't expect the loss will reduce significantly in near future."
I just don't think using the peaked word makes much difference. Loss of 2 bil and 1.95 bil are about the same to me but this can be a big spin by media saying the loss is reduced.
Here is the link to the post http://online.wsj.com/article/BT-CO-20091016-708665.html
So folks, financial sector is still very bad and still on life support except a few big companies such as Goldman Sach which manage to steal money from government with out a obvious trace. If BOA suffers losses, other companies can't be far away. It is just a matter of telling the truth. 2010 will be interesting to see.