Portway Capital Vindicated on Bearish Bank Stance

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Portway Capital proven right on “false dawn” statements

Portway Capital have been proven accurate in their reported assertions that bank stocks remain mired in a writedown “funk” and are thus to be avoided.
Even the mighty Goldman Sachs Inc. has reversed a call on financial stocks, saying on June 23 that its May 5 recommendation was ``clearly wrong.'' A Portway Capital source reportedly mused that analysts have markedly less credibility than they did 10 years ago. Although Portway Capital’s source wouldn’t be drawn on specific timeframes for the end of the rout in banking stocks, the consensus at the French-based wealth management group appears to be that additional writedowns outside subprime will see banking stocks depressed even further going forward.
The mortgage-market debacle that began last year and led to almost $400 billion in bank writedowns and credit losses has endured longer and cut deeper than many bearish analysts predicted. Citigroup Inc., the biggest U.S. bank by assets, and UBS AG, Switzerland's largest lender, have lost $43 billion and $38 billion, respectively.
Portway Capital are thought to have repeatedly advised caution since the beginning of the subprime debacle and are rumoured to have remarked that the only involvement investors should have with bank shares for the foreseeable future is when shorting them.

(PressReleasePoint)