Saturday, August 10, 2013

10 Shocking and Overlooked Comparisons (in Graphs!)

Investors often view the financial sector is as a black hole of sorts. Banks, mortgage lenders, insurers, and hedge funds are constantly lumped together and referred to as if they were one overly complex and unintelligible mass.
While many of these entities are interconnected and dabble in similar areas, it's important to investors to understand the vast differences and the quick changes that can occur, seemingly in the blink of an eye.
With that in mind, here are 10 graphical representations of some astonishing and overlooked comparisons involving banks, insurers, real estate, and more.
1. Unforeseen circumstances

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Source: Bank of America annual reports.
In 2006, pre-Countrywide acquisition, Bank of America (NYSE: BAC  ) was considered one of nation's strongest financial institutions. Little did management and shareholders know that the Countrywide acquisition would ultimately lead to massive legal settlements and liquidity uncertainty as a result of "representations and warranties" made on the droves of questionable mortgages Countrywide had written for years.  (more)
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