Stock Traders Blog

News come out that

Sovereign Bank lost $763.8 million in the first quarter after setting aside several hundred million dollars to absorb potential losses on an escalating number of troubled construction and commercial loans.

The net loss, compared with net income of $119.2 million in the year-ago period, underscores how rough economic conditions will continue to haunt the bank over the next year.

Sovereign said its provision for anticipated loan losses was $505 million in the first quarter, compared with $135 million in the year-ago quarter.

See original news here Sovereign books $763M Q1 loss, bad loans spike

There are not much events on next Monday. If other market is not doing well on Monday then very likely it will be a down day in US. Sovereign’s news is not too big a news. But if no other events draw the market’s attention the bank sector most likely will see it as a selling excuse at least when the market is open. I still believe Well Fargo price at $24.80 is too high and have room to go down.

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