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The authors express concerns that small investors may start to buy financial stocks whose prices are trading well below their book value. The article discusses how Bank of America bought Countrywide Financial for $4 billion, a price equal to a third of its book value. The deal between Bank of America and Countrywide Financial is believed to be relatively sound, but the authors are concerned that other investors may follow it.

The article reports on the possibility that the U.S. Federal Reserve will not help enhance the trends in stock trading in the country since doing so can threaten the performance of longer-dated government bonds in 2011.

The article reports on the stock trading gains of the U.S. pension funds as of July 2011.

This article looks at the impact of financial services legislation on financial stocks in the U.S.

The author comments on the decision of the U.S. Federal Reserve to cut lending rates. He states that investors are right to bid up stocks when Fed's decision revived the economy. He mentions that home sales and refinancing activity would improve due to likely easing of mortgage rates because of Fed's actions. He believes that any firming of credit markets could provide investors enough confidence to venture out from Treasurys and bank accounts.

The author reflects on the U.S. government's move to strengthen Fannie Mae and Freddie Mac. He says that government action will be temporary and the enthusiasm for the bailout plan could wane. When government support facilities expire after 2009, no one knows what the firms will be like. In politics, anything is possible and one has to ask holders of Fannie's and Freddie's preferred and common stock, the author concludes.

The author warns company chief executive officers (CEO) in following leads to buying stocks. He cites that according to studies from Gradient Analytics, the third and fourth quarter of 2007 recorded executives and directors buying more stock in their companies than at any other time since 2002, unable to mark a bear-market bottom. He suggests for the executives to base their buying and selling of stocks from past incidents. He believes that executives should pay less attention when insiders are cashing in their chips.

The author emphasizes the need for the U.S. mortgage company Freddie Mac to bolster its equity in 2008. He notes that the firm and chief executive officer (CEO) Richard Syron concentrate on measures of regulatory capital. He cites the plan of the company to raise a capital worth $5.5 billion. He adds that the reserve for losses in mortgage portfolio of Freddie Mac was increased by $2.8 billion.

The article focuses on the implication of the purchase of Countrywide Financial by the Bank of America to investors in the housing market. It mentions that the relief rally of financial stocks was hindered by poor existing home sales as investors continue to lack confidence in the sector. It notes that the acquisition reflect that big losses could still be found among banks. It discusses how the net worth of Countrywide Financial was valued at $100 million.

The author examines whether the common equity in Fannie Mae and Freddie Mac will have any value left once the housing crisis in the U.S. is done. He says the best worst-case scenario would be that large capital raises in which millions of new common shares are issued, diluting the holdings of existing shareholders. He notes that investors have to consider any actions the U.S. government takes to protect Fannie Mae and Freddie Mac.

The article discusses the financial state of Lehman Brothers Holdings Inc. as of June 4, 2008. It states that due to its falling stocks, investors consider Lehman as the latest company weighing on financial stocks. The financial problems, it adds, can compel the firm to issue a big amount of equity, sell a part, or all of it to a larger financial company. A full discussion on the challenges facing the firm is provided.