Analyst believes 'subprime risk overstated' for Citi, Lehman, Bear Stearns, JP Morgan

[c1ue]

Merrill Lynch analyst Guy Moszkowski said in a note to clients on Tuesday. Concerns have arisen since HSBC announcements regarding subprime mortgages last week, he noted. "It appears that these firms, cognizant of the deterioration in lending standards during 2006, took steps to lessen their risk," he said. Looking ahead, the opportunity for firms to acquire distressed assets at distress prices "is likely to be significant."

http://www.marketwatch.com/News/Stor...yhoo&dist=yhoo

For the record...

[DemonD]

Re: Analyst believes 'subprime risk overstated' for Citi, Lehman, Bear Stearns, JP Mo

The thing that kills me about the subprimers being bought at distressed prices is that the big banks will be able to take massive tax breaks due to the net operating loss they will be receiving. Any bank buying a subprimer will be able to make billions in tax deductions. yikes.