Time and again, Sean Egan and his team at Philadelphia-based Egan-Jones Ratings have made important calls months ahead of their better-known rivals. The firm has won grudging respect for its work on Ambac, CIT, Countrywide, General Motors, IndyMac, Lehman Brothers, MBIA and New Century, all of which encountered big problems after getting poor credit grades from Egan-Jones. Read the rest of the report by clicking on the link below.
A very scary interview with Sean Egan from Barron’s
This is a very convincing report and may prove to be true but the short covering on the banks mentioned in this post was some of the most brutal I have seen in some time. The bank stocks mentioned in this report that were explicitly or implied to be basically insolvent all rallied sharply today.
LYG up 9.47%
RBS up 6.87%
BCS up 11.03%
DB up 4.43%
I don’t know what the remainder rose today as the above have ADR’s I assume the French banks were equally painful for the shorts.
