Banking/finance sector: worse is over?

Any one who think the worse is over for banking & finance sector must take into the account these facts.

#Housing is not showing any sign of improvement, so still there can more and substantially write-offs in future.

#Recent worldwide meltdown of equity markets will show it's effect on results in current quarter and in many cases can show upto 30-40% write down/loss in equity investments.

#Worldwide equity markets meltdown will also effect the service related income of banking industry.

#If economy really go into recession then the other business loans (excluding mortgage) will also come under substantial risk.

#Recent rating downgrade of some banking/financial institutions will also eat up profit/interest margins in still profit making segments of banking (due to rising cost of credit).

So if any one want to invest in banking/financial sector must take close look at all aspects before investing.

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