Breaking up is hard to do, especially for global banks. Last summer when major bank stocks were below tangible book value, Michael Price
of MFP Investors told Bloomberg, “That means the pieces are worth more than the whole.” At the end of May 2013, Moody's upgraded the U.S. banking system from “negative,” where it had sat for five years, to “stable.” However, smaller, distressed banks with ailing loan portfolios are merging for survival and creating opportunities for billionaire investors like Michael Price
, whose trading shows a penchant for hard-hit banks.
In April, Price made a new buy of savings and cooperative banker First Security Group Inc. (FSGI
) where insider trading
was very active in the same month with anticipated growth from First Security’s recent recapitalization. The company is down 14% over 12 months. Price’s other top holding West Coast Bancorp was recently sold to Columbia Banking System Inc. (COLB
), up 40% over 12 months. Continue Reading »