headkicker bank gets some of its own medicine, page-36

Nothing new about this article.Regurgitate every other month. Jim Chanos - a genius? I have expected in august that a us investment bank will go bust before mqg. MQG is not Bear Stearns -there is a 0 probability of it going insolvent.It has 3bn in cash which it can redeploy - either to buy distressed assets or launch a buyback. Its satellite funds MIG and MAP has about $1bn in cash.

MQG is doing exactly what other banks are doing - raise deposit rates to attract new moneys. I think that the 5 big banks are still overpriced - they are writing new mortgages at a loss and will need to raise capital within the next 6 months - a 15% fall in the sp will see the bottom or a 15% gross div yld. Likely that divs will be cut in 2009.

imo the 2 big banks are vulnerable - there are plenty of centros that are yet to be revealed; and they are more likely to be bailed out than MQG.

I expect MQG to bottom out at 35 and Management to launch a buyback once the sp drops below 40.

there is no rush to buy these shares as the shortsellers control up to 60% of the issued capital at the moment