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7 Big Banks Going Bust

Debt fears continue to beat down financial stocks

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closed bank e1311027569279 7 Big Banks Going BustDespite being given every advantage to repair the disastrous damage of the housing market crisis and financial crash of 2008, big banks and financial stocks are struggling to gain any positive momentum in 2011. The sector is one of the worst performing groups of stocks in 2011, compared with other areas of the market that have actually put up respectable gains  of about 7% year-to-date as measured by the Dow Jones and S&P’s performance

Unfortunately that downward trend is likely to continue for bank stocks. There is no easy solution to the mess in the wake of a huge sub-prime mortgage crash, rampant foreclosures and a dramatic slump in the value of bank stock share prices. Time is needed to heal the damage, and unfortunately the hits keep on coming and revenue remains flat for the major financial stocks on Wall Street. It may not be a lost decade like Japan, but it will be close. Real estate values are still falling and consumers are still strapped and trapped in jobs that offer very little income growth.

Banks are to be sold in this environment, and big banks like Bank of America (NYSE:BAC), JP Morgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC) are the biggest sells of all. Here are seven that should be jettisoned post haste.


Article printed from InvestorPlace Media, http://investorplace.com/2011/07/7-big-banks-going-bust-hbc-jpm-wfc-c-bac-gs-ubs-financial-sector/.

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