We know that Merrill Lynch is peddling this or Bloomberg or both. And their earnings come out in a couple of days. We've been hearing that "Blackrock" is a crown jewel. Remember Larry Fink of Blackrock is the one who said the Fed's Bear Stearn's paper didn't drop a "penny."
Of course this was in a "normal market." This market has been this way since August. Maybe someone needs to read the cover of the book, 'The New Normal" and start accepting that these prices are reality.
And their pricing isn't.
PNC Financial (52.05) owns a big chunk (1/3) of Blackrock, and the put buyers have been busy in this number. Blackrock has a market cap of $21 billion; and PNC's is $18billion. You can do the math.
This quarter, PNC will have at least $500 million in HELOC's to writedown, the same in asset backed and still significant problems in commercial mortgages. Is that in the stock?
I don't think so.
PNC is supposed to be one of the "better" banks. Blackrock is one of the "better" managers.
We'll soon see how they look when the tide comes out.
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