Foreclosures: Next shoe to drop for bank
By Paul R. La Monica
Bank stocks have been shellacked lately as investors worry about what impact the foreclosure scandal will have on the results for the nation’s largest financial institutions.
Still, some fund managers think the market is overreacting and that the allegations of improper documentation for foreclosures and the resulting delay in some proceedings is not setting the stage for the next Bear Stearns or Lehman Brothers — i.e. another major banking crisis.