stlplaceThe promotion ends Monday March 30, for new customer only. $25 will appear in acct shortly after opening. Need to use the Check Card once to get the remaining $50. As I understand US bank does business mostly in Midwest and Northwest. Check out bank branch locations from their web site.
No additional conditions such as direct deposit etc.
Disclosure: I just opened one this morning; I also hold a few shares of US bank stock (NYSE: USB) at this time.
Also collected here.
1. Why invest in Utilities? Does not Utilities need a lot of capital, what’s the difference between Utilities and the original Berkshire (BRK.A, BRK.B) textile business? You did explained in your letter that utilities can deploy capital for a decent return. And I read this old article “Why Buffett is buying utilities” from MSN money (Jim Jubak). Do you agree some of what Jim said?
2. Why keep American Express (NYSE:AXP) and Moody (NYSE:MCO)? Don’t we see the permanent demage of consumer credit, and the rating companies? How about Wells Fargo (NYSE: WFC)? Why not sell all Bank of America (NYSE: BAC) shares (noticed you did sell half last year)?
3. Derivatives. There are a lot crititics on this, and you have explain this very well in the shareholder letter. But, as I read “Poor Chariles Almanack”, Charile is much more cautious on derivatives, and its systemantic risk (chain effect of credit risk form counter parties). What’s your comments on over the counter derivatives market in general?
Will add more questions when it pops up.
Disclosure: I sold my remaining BRK.B share yesterday. No positions on the other stocks being mentioned.
Unbelievable shot at the end of 1st half. Link here.
Actually coach Anderson did ask players do those long range shoots in practice. It surely paid off.
Time to do some homework, amid all these AIG bonus (Yahoo Tech-ticker; NY Times op ed), and toxic asset plan (Krugman vs. Geithner craziness). I decided to calm down and took a look at US Bank (bancorp) (NYSE: USB; company IR page).
Articles I read from seekingalpha
Amit Kumar: Bank stocks: invest or trade?
Martin Hutchinson (money morning): Wells Fargo and US Bancorp: hitch a ride with those two
Patrick Garot: Repaying TARP: life for USB and NTRS?
I learned about US Bank a few years ago after the FirstStar merger. My coworker told me that this is the only bank named after “US/United States” after Sept 11 (she implied no more bank will be approved using similar name). Later on I visited US bank branch with my roommate because he was US bank customer. I applied US bank visa card %0 balance transfer last year. They approved my card quickly and gave me a generous credit line 🙂
I will add my investment thesis later on.
Toxic asset plan, or Public Private Investment Partnership (PPIP).
Charile Rose
Hedge fund manager’s perspective: Daniel Alpert is a managing director of Westwood Captial and Thomas F Steyer is Co-Managing Partner of Farallon Capital Management (total about 22 mins)
The plan
Tim Geithner (WSJ): My Plan for Bad Bank Assets (aka Public Private Investment Partnership, PPIP); Treasury dept press release.
Notice the PPIP will leverage the TALF program launched by Fed recently. Here is a picture explains how PPIP works with TALF. (click to enlarge)
I think it’s important to read those before reading others comments, no matter a guy is nobel laurate or a blogger. Blackrock and Pimco, two large asset (bond) managers, appeared like the plan.
Psychology Book
Influence: Science & Practice by Robert Cialdini
Link here. See the video below.
The only thing I want to add is: what a game.
AIG bonus. 90% tax. Clawback (that’s new word for me). Goldman Sachs.
The bank rescue (aka toxic assets) plan
Tim Geithner (WSJ op ed March 23) My Plan for Bad Bank Assets;
NY Times article;
WSJ article.
Paul Krugman (the recent Nobel Economics winner) comments (one, two)
Meet the press, Face the Nation and ABC “this week” all talked about this and its implications. So as Fox.
A twist on Coke/Huiyuan story
The China minister of commerce said the outcome does not mean China is now not welcoming foreign investments. This is a merger between two foreign companies (Coca Cola in the US; Huiyuan in Cayman Island). As you may know many Chinese companies are set up in Cayman island (for tax purpose). In other words, the minister is re-emphasize this is purely a monopoly case. Just like the EU rejected the GE/Honeywell merger a while ago.
(Update 31March09) Wells Fargo is saying they may cut foreign staff (source: marketWatch).
(Original) I was expecting Coca Cola’s proposed Huiyuan Juice acquistion go through, but obviously things did not turn out as I expected. While the free trade people in the US are upset by this, they should remember in 2005, the US congress shut down China CNOOC proposed buy of US oil company Unocal. Signs of more protectionism in the US (besides the anti-free trade measures in the stimulus bill, recent trade dispute with Mexico).
Debate on H-1B
On the other side of the pacific.
(Financial Times) BofA withdraws job offers to foreign MBAs; (Forbes) Chuck Grassley hurts America.
Durbin-Grassley anti H-1B bill; (Economy Times) Microsoft reply to the bill; (Seattle Times) Proportion of H-1B workers at Microsoft won’t change after layoffs.
A twist
Interestingly (on the other hand), I read from WSJ, that some people proposed encouraging the immigrants to buy houses in the US to prop up the slumping housing market. Seriously I do think this country could use more money/investments from the world.
From Charlie Rose, March 17. A conversation about AIG with Hank Greenberg former chairman and CEO of AIG, Carol Loomis Senior editor-at-large of “Fortune”, Gretchen Morgenson of “The New York Times” and Meredith Whitney.