>>> US Research Calls

Research Calls
  • Upgrades:
    • AllianceBernstein (AB) upgraded to Buy from Neutral at BofA Securities; tgt raised to $47
    • American Express (AXP) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $200
    • Assoc Banc-Corp (ASB) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $24
    • Belden (BDC) upgraded to Buy from Neutral at Goldman; tgt raised to $117
    • Brixmor Property (BRX) upgraded to Sector Outperform from Sector Perform at Scotiabank; tgt $25
    • Corteva (CTVA) upgraded to Buy from Neutral at UBS; tgt raised to $67
    • Centene (CNC) upgraded to Neutral from Underperform at BofA Securities; tgt lowered to $72
    • Domino's Pizza (DPZ) upgraded to Outperform from Market Perform at TD Cowen; tgt raised to $450
    • Equity Residential (EQR) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $69
    • Hudson Pacific Properties (HPP) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $9
    • Jefferies (JEF) upgraded to Conviction Buy from Buy and added to Directors' Cut list at Goldman
    • Keysight (KEYS) upgraded to Buy from Neutral at Goldman; tgt raised to $164
    • Lamb Weston (LW) upgraded to Buy from Neutral at Goldman; tgt raised to $127
    • Lowe's (LOW) upgraded to Outperform from Mkt Perform at Bernstein; tgt raised to $282
    • lululemon athletica (LULU) upgraded to Mkt Perform from Underperform at Bernstein; tgt raised to $366
    • NetApp (NTAP) upgraded to Positive from Neutral at Susquehanna; tgt raised to $100
    • Regency Centers (REG) upgraded to Outperform from Mkt Perform at Raymond James; tgt $69
    • Retail Opportunity Investments (ROIC) upgraded to Outperform from Mkt Perform at Raymond James; tgt $16
    • Stryker (SYK) upgraded to Buy from Neutral at BofA Securities; tgt raised to $315
    • Woodward (WWD) upgraded to Outperform from Market Perform at TD Cowen; tgt raised to $160
    • Vail Resorts (MTN) upgraded to Buy from Hold at Stifel; tgt $268
  • Downgrades:
    • Agiliti (AGTI) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $11
    • Banco Bilbao Vizcaya Argentaria (BBVA) downgraded to Equal-Weight from Overweight at Morgan Stanley
    • Bread Financial (BFH) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $43
    • Chicago Atlantic Real Estate Finance (REFI) downgraded to Neutral from Buy at Compass Point; tgt $16
    • CNH Industrial (CNHI) downgraded to Mkt Perform from Outperform at Bernstein; tgt lowered to $15.11
    • Danaos (DAC) downgraded to Hold from BUy at Fearnley; tgt $77
    • Douglas Emmett (DEI) downgraded to Neutral from Overweight at Piper Sandler; tgt $15
    • Equity Lifestyle Properties (ELS) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $70.50
    • Eos Energy (EOSE) downgraded to Neutral from Buy at Seaport Research Partners
    • Federal Realty (FRT) downgraded to Outperform from Strong Buy at Raymond James; tgt lowered to $104
    • FMC Corp (FMC) downgraded to Neutral from Buy at UBS; tgt lowered to $97
    • General Mills (GIS) downgraded to Neutral from Outperform at Exane BNP Paribas; tgt $72
    • Innovative Industrial Properties (IIPR) downgraded to Neutral from Buy at Compass Point; tgt $95
    • Kite Realty (KRG) downgraded to Mkt Perform from Strong Buy at Raymond James
    • Olin (OLN) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $67
    • Oracle (ORCL) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $150
    • ResMed (RMD) downgraded to Neutral from Buy at UBS; tgt lowered to $170
    • Spirit Aerosystems (SPR) downgraded to Hold from Buy at Melius; tgt $23
    • Synchrony Financial (SYF) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $37
  • Others:
    • Automatic Data (ADP) initiated with a Sector Perform at RBC Capital Mkts; tgt $267
    • Braze (BRZE) initiated with a Buy at Citigroup; tgt $60
    • Cabaletta Bio (CABA) initiated with a Buy at Citigroup; tgt $22
    • Dine Brands (DIN) initiated with a Buy at UBS; tgt $68
    • MFA Financial (MFA) resumed with an Outperform at Wedbush; tgt $12
    • Patterson-UTI (PTEN) initiated with a Buy at Stifel; tgt $19
    • The Duckhorn Portfolio (NAPA) initiated with a Market Perform at BMO Capital Markets; tgt $14
    • Diamond Offshore (DO) initiated with a Buy at BTIG Research; tgt $20
    • HubSpot (HUBS) initiated with a Buy at Citigroup; tgt $695
    • Mid-America Aptmt (MAA) initiated with a Neutral at BofA Securities; tgt $158
    • Paychex (PAYX) initiated with a Sector Perform at RBC Capital Mkts; tgt $130
    • Pyxis Oncology (PYXS) initiated with an Outperform at RBC Capital Mkts; tgt $7
    • Sana Biotechnology (SANA) initiated with a Buy at Citigroup; tgt $8
    • ZoomInfo (ZI) initiated with a Neutral at Citigroup; tgt $19

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:
  • TCOM -3.4%
Other news:
  • MANU -9.7% (bidders failed to reach asking price, according to Daily Mail)
  • QURE -3.4% (FDA has cleared the Investigational New Drug application for AMT-260)
  • CIFR -3.3% (August 2023 Operational Update)
  • ALXO -2.7% (files for 18,446,936 shares of common stock by selling shareholders)
  • CCJ -2.3% (reports market update regarding challenges at the Cigar Lake mine and Key Lake mill impacting 2023 production forecast)
  • RPD -2% (proposes offering of $250 mln of convertible senior notes due 2029)
  • WES -1.9% (to acquire Meritage Midstream Services II, LLC in an all-cash transaction for a purchase price of $885 million)
  • LNC -1.5% (to be replaced in the S&P 500)
  • CANF -1.4% (files for $100 mln mixed securities shelf offering)
  • VNOM -1.2% (acquires certain mineral and royalty interests from affiliates of Warwick Capital Partners and GRP Energy Capital in exchange for ~9.02 mln Viper common units and $750 mln of cash)
  • NWL -1% (to be replaced in the S&P 500)
  • RIG -0.9% (files for 82,596,498 shares of common stock by selling shareholder)
Analyst comments:
  • AGTI -4.4% (downgraded to Underperform from Neutral at BofA Securities)
  • EOSE -1.6% (downgraded to Neutral from Buy at Seaport Research Partners)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • BRC +12.2%
Other news:
  • NXGN +10.9% (Thomas Bravo in advanced discussions to purchase NXGN, according to Bloomberg)
  • DHC +10.6% (Diversified Healthcare Trust and Office Properties Income (OPI) trust mutually agree to terminate merger agreement)
  • WVE +7% (announces the submission of its first clinical trial application for WVE-006 in alpha-1 antitrypsin deficiency)
  • ABNB +5.6% (will join S&P 500)
  • INSM +4.2% (topline results from Phase 3 ARISE study of arikayce (amikacin liposome inhalation suspension) in patients with ntm lung disease caused by MAC)
  • BX +3.7% (will join S&P 500)
  • XENE +3.6% (showcases XEN1101 Epilepsy Program at 35th International Epilepsy Congress)
  • AUTL +3.3% (announces data from AUTO1/22 trial in pediatric Acute Lymphoblastic Leukemia published in the journal Blood)
  • GNL +2.9% (to host conference call and Q&A to discuss benefits of merger and internalization transaction)
  • RLYB +2.8% (presents Phase 1 single ascending dose data for RLYB116, an innovative subcutaneously injected inhibitor of complement component 5)
  • OPAL +2.3% (announces new $500 million credit facility)
  • HOLI +2.2% (notices of intention to request Special Meeting of Shareholders and additionally an unsolicited offer to acquire the company)
  • VTRS +2% (receives FDA Tentative approval of a Paediatric Formulation of Abacavir (ABC)/Dolutegravir (DTG)/Lamivudine (3TC))
  • TRVG +1.7% (announcing a renewed focus on its brand marketing strategy; plans to issue a special one-time extraordinary dividend; no longer expects to exceed adjusted EBITDA of €70 million in 2023)
Analyst comments:
  • AB +2.1% (upgraded to Buy from Neutral at BofA Securities)
  • WWD +2% (upgraded to Outperform from Market Perform at TD Cowen)
  • CNC +1.2% (upgraded to Neutral from Underperform at BofA Securities)
  • SYK +1.1% (upgraded to Buy from Neutral at BofA Securities)

>>> US Early premarket gappers

Early premarket gappers

Gapping up:
NXGN +11.2%, DHC +10.3%, TRVG +6.7%, ABNB +5.2%, BX +3.8%, XENE +3.6%, GNL +2.9%, VTRS +2.7%, CIFR +2%, HOLI +1.7%, FATE +0.7%, SGEN +0.5%

Gapping down:
MANU -9.1%, TCOM -4.8%, ALXO -2.7%, CCJ -2%, RPD -2%, LNC -1.7%, CANF -1.4%, VNOM -1.3%, PBR -1.2%, NWL -1%, RIG -0.7%, NVS -0.6%, VALE -0.5%, ALB -0.5%

>>> Europe : Brokers Upgrades & Downgrades - 5th of September 2023 V2(+)

>>> Up
* Akzo Nobel Raised to Buy at Deutsche Bank; PT 90 euros
* American Express Raised to Outperform at RBC; PT $200
* Boliden Raised to Buy at Deutsche Bank; PT 380 kronor
* Bunzl Raised to Buy at Goodbody; PT 3,200 pence (+)
* Colruyt Raised to Overweight at JPMorgan; PT 39.80 euros
* EDP Renovaveis Raised to Overweight at Morgan Stanley
* Ence Raised to Buy at JB Capital Markets; PT 4 euros (+)
* Lancashire Raised to Equal-Weight at Morgan Stanley
* Maisons du Monde Raised to Neutral at Bryan Garnier; PT 9 euros (+)
* Oracle Raised to Overweight at Barclays; PT $150 (+)
* RELX Raised to Buy at Investec; PT 2,850 pence
* Sanofi Raised to Buy at Berenberg; PT 115 euros
* Siemens Healthineers Raised to Buy at HSBC; PT 56 euros
* Tryg Raised to Overweight at Morgan Stanley; PT 178 kroner

>>> Down
* Aedifica Cut to Hold at SocGen; PT 62.50 euros
* Ahold Delhaize Cut to Underweight at JPMorgan; PT 28.17 euros
* BBVA Cut to Equal-Weight at Morgan Stanley; PT 9.20 euros
* B&M European Cut to Underweight at JPMorgan; PT 513 pence
* Boohoo Cut to Neutral at BNPP Exane (+)
* Campari Cut to Equal-Weight at Morgan Stanley; PT 13.30 euros
* CFE Cut to Underperform at Oddo BHF (+)
* CMC Markets Cut to Add at Peel Hunt; PT 140 pence
* Commerzbank Cut to Underweight at Barclays; PT 10.80 euros (+)
* Cie du Bois Sauvage Cut to Accumulate at KBC Securities (+)
* Credit Agricole Cut to Sell at Goldman; PT 11.50 euros
* Fnac Darty Cut to Sell at Bryan Garnier; PT 27 euros (+)
* Fresenius SE Cut to Hold at HSBC; PT 33 euros
* Headlam Cut to Hold at Peel Hunt; PT 250 pence (+)
* Informa Cut to Hold at Investec; PT 775 pence
* J. Martins Cut to Underweight at JPMorgan; PT 20.80 euros
* Hiscox Cut to Equal-Weight at Morgan Stanley; PT 1,233 pence
* Kingspan Cut to Hold at SocGen; PT 77 euros
* National Grid South West Cut to Reduce at AlphaValue/Baader
* Roche Cut to Hold at Berenberg; PT 290 Swiss francs
* Tesco Cut to Neutral at JPMorgan; PT 250 pence
* Volvo Car Cut to Hold at SEB Equities; PT 44 kronor

>>> Initiation
* Alten Rated New Buy at Stifel; PT 170 euros
* Coloplast Reinstated Neutral at Goldman; PT 820 kroner
* ConvaTec Reinstated Buy at Goldman; PT 300 pence
* EDP Resumed Overweight at Morgan Stanley; PT 5.20 euros
* Headlam Cut to Hold at Peel Hunt; PT 250 pence (+)
* Trainline Rated New Buy at Canaccord; PT 371 pence (+)

>>> Call
* BBVA Cut at Morgan Stanley, SocGen Now Among Top Bank Picks
* Campari Cut as Morgan Stanley Says Wait For Better Entry Point
* Credit Agricole Cut at Goldman as Estimates Turn More Cautious (+)
* EDP Renovaveis Raised at Morgan Stanley, EDP Resumed Overweight
* Reinsurers, Multi-Liners Favored by Morgan Stanley in Insurance
* Sanofi Raised at Berenberg, Roche Cut on Pipeline Outlook (+)

>>> Swatch X Blancpain : la future Fifty Fathoms en Biocéramique fait son arrivé

Swatch X Blancpain : la future Fifty Fathoms en Biocéramique fait son arrivée ?
Il est tout bonnement impossible de passer à côté de cette News : la marque Swatch vient de dévoiler une collaboration inédite avec sa marque sœur Blancpain connue pour la légendaire Fifty Fathoms ou encore la collection Villeret. (je dis marque sœur, car les deux maisons appartiennent au même groupe, le géant Swatch Group).
C’est le Vendredi 1er septembre que tout a commencé “en douceur” avec une immense campagne de publicité dans la presse. Les plus grands magazines du monde comme le Washington Post ou encore le New York Times et j’en passe y sont passés. Une campagne simple mais efficace qui a suffit à mettre en excitation le monde entier. On retrouve une page imprimée d’une eau bleu turquoise avec pour seule petite indication une couronne de montre qui porte le logo “Swatch X …” annonçant une collaboration entre deux maisons du grand groupe, comme l’était l’emblématique Moonswatch de Swatch et Omega.
À partir de là, le premier son de cloche était donné et les passionnés de montre du monde entier n’ont pas eu besoin de beaucoup de temps pour comprendre que la forme de la couronne présente dans ces publicités ne pouvait représenter qu’une seule chose : une Blancpain Fifty Fathoms.
Swatch X Blancpain : rendez-vous le 9 septembre 2023
Ce n’est que hier soir, le Dimanche 3 Septembre que la marque Swatch à réellement officialisé et annoncé le lancement de cette nouvelle collaboration. Alors que nous ne savons toujours pas à quoi ressemblera cette futur montre, même si on peut s’attendre à quelque chose qui va garder l’ADN de la Blancpain Fifty Fathoms mais avec un boîtier en biocéramique.
Le site de la marque Swatch ainsi que de la maison Blancpain fait peau neuve avec une bannière annonçant leur collaboration à travers une MAP reprenant les 5 océans de la planète : l’océan Pacifique, l’océan Atlantique, l’océan Indien, l’océan Antarctique et l’océan Arctique.
Ce matin même, le Lundi 4 Septembre, certaines boutiques Swatch et Blancpain soigneusement sélectionnées ont reçu une livraison particulière, une valise style Pelicase étanche de couleur jaune entièrement scellé avec une étiquette “T minus X days”. On retrouve également le logo qui sera présent sur la couronne de la montre. Le logo de la collaboration Swatch et Blancpain représente à la fois le “S” de Swatch et le “JB” de Blancpain qui fait référence au fondateur de la société, Jehan-Jacques Blancpain.
À noter que la maison horlogère Blancpain évolue depuis 1992 sous la gouverne du Swatch Group.
Le design de la montre Swatch X Blancpain
Parlons un peu design maintenant. Un grand nombre de médias et de passionnés ce sont prêté au jeu d’imaginer le design, le boîtier et les cadrans de cette future collection qui risque une fois de plus de créer des files d’attente et des bagarres. Une chose qui semble totalement plausible concernant cette collaboration, c’est le fait que la collection comportera sûrement 5 montres différentes : une montre représentant un Océan. Un peu dans le style de ce qui a été fait lors de la collaboration entre Swatch et Oméga ou une montre représentait une planète du système solaire.
ATTENTION CECI EST UNE PRÉDICTION ET CE N’EST EN AUCUN CAS LE DESIGN DE LA MONTRE
Dans l’idée on retrouverait donc 5 montres avec des couleurs plus ou moins liées à l’océan et au monde Nautique. Un cadran qui restera sûrement fidèle à l’ADN de la Blancpain Fifty Fathoms avec un dateur ? Peut-être que oui, peut-être que non ? Une lunette unidirectionnelle ?
Bien évidement, on retrouvera le logo des deux maisons Swatch et Blancpain. Mais ce qui va poser le plus de questions c’est l’étanchéité. La montre Blancpain Fifty Fathoms est connue pour être la première vraie montre de plongée au monde. Une montre robuste et étanche jusqu’à 300 mètres. J’ai du mal à croire qu’une montre avec un boîtier en biocéramique, qui n’est autre qu’un plastique “de luxe” avec un nom bien marketé puisse être étanche ne serait-ce qu’à 20 ATM.
De plus, c’est quand même un comble de vouloir concevoir une montre de plongée en plastique en hommage aux océans quand on sait que le plastique est justement la source de pollution principale sur notre planète et surtout dans nos océans.
Le mouvement de la montre Swatch X Blancpain
Le mouvement de cette future montre a également été source de nombreuses rêveries. Alors que le calibre Quartz de la Moonswatch a été plus ou moins bien accueilli, certains aimeraient voir débarquer un mouvement Sistem 51 dans cette nouvelle collaboration Swatch X Blancpain.
Le mouvement SISTEM 51 est un mouvement automatique et amagnétique avec seulement 51 pièces et une vis centrale. Une petite prouesse pour Swatch puisque se mouvement offre une réserve de marche de 90 heures. Quand on voit le prix d’une montre Swatch avec ce type de mouvement, il n’est pas délirant de voir ce mouvement sur une montre Swatch X Blancpain qui serait vendue aux alentours des 300€.
Pour le moment aucun prix n’a été annoncé, on ne sait pas non plus si la montre sera disponible en édition limitées ou non, sur internet ou non mais à mon avis c’est la stratégie de la Moonswatch qui va primer donc j’opte pour une disponibilité uniquement en boutique.
Pour conclure
En bref, rendez-vous ce Jeudi 7 Septembre pour la révélation des 5 design de la montre Swatch X Blancpain et pour la disponibilité en boutique je vous donne rendez-vous le Samedi 9 Septembre dans les magasins Swatch et Blancpain (oui oui) sélectionnés. Je n’ai pour le moment pas trop d’avis à donner puisque la pièce n’est pas encore sortie mais bon, je reste septique face à l’exploitation, une fois de plus, de cette stratégie marketing du Group Swatch.
Est-ce pour donner plus de visibilité et faire connaître la marque Blancpain qui reste bien moins connue des nouveaux amateurs de montres mécaniques ? Quoiqu’il en soit j’espère que le groupe de ne va pas répéter les mêmes erreurs que lors de sa collaboration avec Omega.

>>> Stoxx 600 Pre-Market Indications

  • Rio Tinto (RIO1 TH) +1.8%
    • Iron Ore Rises to Highest Since April on China Property Aid
  • Siemens Healthineers (SHL TH) +1.4%
    • Siemens Healthineers Raised to Buy at HSBC; PT 56 euros
  • Vodafone (VODI TH) +1.1%
  • Cellnex (472 TH) +0.8%
  • FDJ (1WE TH) +0.7%
  • Sanofi (SNW TH) +0.7%
    • Sanofi Raised at Berenberg, Roche Cut on Pipeline Outlook
  • Adidas (ADS TH) -0.9%
  • Zalando (ZAL TH) -0.9%
    • Rising Cost of Capital Looks Like Last Straw for Low-ROIC E-Tail
  • BBVA (BOY TH) -1.2%
    • BBVA Cut at Morgan Stanley, SocGen Now Among Top Bank Picks
  • SCA (SCA TH) -1.4%
  • Credit Agricole (XCA TH) -1.6%
  • Commerzbank (CBK TH) -1.7%
    • Commerzbank Cut to Underweight at Barclays; PT 10.80 euros
  • Fresenius SE (FRE TH) -2.5%
    • Fresenius SE Cut to Hold at HSBC; PT 33 euros
  • Ahold Delhaize (AHOG TH) -2.8%
    • Ahold Delhaize Cut to Underweight at JPMorgan; PT 28.17 euros

>>> TradeGate Pre-Market Indications

DAX:
  • Siemens Healthineers (SHL TH) +1.5%
    • Siemens Healthineers Raised to Buy at HSBC; PT 56 euros
  • Commerzbank (CBK TH) -1.4%
    • Commerzbank Cut to Underweight at Barclays; PT 10.80 euros
  • Fresenius SE (FRE TH) -2.5%
    • Fresenius SE Cut to Hold at HSBC; PT 33 euros
MDAX:
  • Nordex (NDX1 TH) +1.4%
  • Thyssenkrupp (TKA TH) -0.9%
SDAX:
  • Wacker Neuson (WAC TH) +1%
  • Deutz (DEZ TH) -0.8%
  • Salzgitter (SZG TH) -0.8%

FT : The $44bn bank bailout bonanza

The $44bn bank bailout bonanza
‘Deals of the century’ were to be had for opportunists on both sides of the Atlantic

UBS’s second-quarter results last week included the effects of its June shotgun wedding with arch-rival Credit Suisse. Its $29bn profit was, by far, the single greatest three-month result earned by a bank.

This apparent “deal of the century” bore an accounting gain that in effect contributed all of those earnings. UBS scavenged the mortally wounded CS cheaply amid its potential collapse, a tie-up effectively demanded by the Swiss government. 

With the books closed on that combination, we now have the official figures from quarterly reports and securities filings on all four of the major bank M&A rescues since the early spring crisis:

  • New York Community Bancorp/ Signature Bank (March)

  • First Citizens/ Silicon Valley Bank (March)

  • JPMorgan Chase/ First Republic Bank (May)

  • UBS/ Credit Suisse (June)

In any M&A deal, so-called purchase accounting will require the buyer to allocate the “excess purchase price” to all acquired assets and liabilities. Typically, the purchase price — the present value of future cash flows — will still exceed the revised balance sheet valuation.

That gap is known as “goodwill”. Often thought of as the je né sai quoi of a company, yet goodwill is ultimately a mechanically-derived arithmetic output to ensure that the pro forma balance sheet does indeed balance.

But with this foursome of deals, the calculation is far more interesting. The transactions were extraordinary, with authorities desperate to find a buyer quickly and prevent broader contagion. As such, buyers could largely dictate the deal terms.

In each of these instances, the buyers took over the targets for an effective purchase price far less than the target’s book equity value, also called net asset value (the fair value of their assets less the fair value of their liabilities).

As such, the buyers did not need to raise their own costly and possibly dilutive equity in order to complete the deals. (In contrast, look at the recently announced merger between PacWest and Banc of California, a regular way transaction that requires a $500mn private equity infusion.) 

The four deals each created the unusual “negative goodwill” since the net asset value exceeded the purchase price. Negative goodwill is the term under IFRS. Per US GAAP, the concept is known as a “bargain purchase gain”. In both instances, a gain is recorded and runs through the P&L to create income and then equity capital boosts at essentially no cost. 

(Note that at the time of the deal announcements, the buyers each shared a preliminary calculation of their expected gains and now final purchase accounting largely confirms those initial figures.)

Here is an example, this one from JPMorgan/ First Republic:

Alphaville has attempted to show the scale of the gains for the four buyers:


Those four green bars of bargain purchases prices/negative goodwill add up to $44bn in collective gain. Next we can see how big those gains were, relative to size of the banks, pre-deal, measured by their shareholder equity recorded in the previous quarter.


JPMorgan paid a relatively hefty price for First Republic, including a $10.6bn cheque to the FDIC and writing off the $5bn deposit it had made into First Republic earlier in the year. As such, its bargain purchase gain was less than $3bn for a bank with $300bn of shareholder equity.

First Citizens, a relatively small bank, doubled its equity base by getting most of Silicon Valley Bank for just $500mn. 

More precisely, return on equity (profits divided average shareholder equity) shows how efficient these deals were for the buyers.

First Citizens, UBS and NYCB each had RoEs in the previous quarter of between 9 per cent and 11 per cent. Then they each struck gold.
Accounting aside, what may matter most is how shareholders embraced these deals.

First Citizens stock price has almost doubled. NYCB is up 43 per cent and UBS is not far behind. JPMorgan is up just 9 per cent, indicating the small potatoes of FRB, but still is nearly 30 points ahead of the KBW bank index which is down nearly a fifth this year.

Exploiting the desperation of regulators meant mostly easy money for the buyers. The tough losses then have been imposed on previous shareholders of these moribund banks, their non-deposit creditors as well as the deposit insurance schemes that are funded broadly by the banking industry.

These failed banks had viable assets as these acquirers have demonstrated. Why the returns from those assets must be only captured by opportunistic parties remains a public policy question.