Contents
Banking Siege – Overview 2
Valuations – Unbelievable Levels 4
Recommendations – Strong Buy 5
Market Capitalization Declines vs. Writedowns – Severe 6
Short Interest Ratio Declining – Short Covering 6
Balance Sheet Risk – Exposure to High-Risk Assets
Low Exposure on Absolute & Relative Basis 7
Canada vs. U.S. – Two Very Different Markets – Canada's Structural Advantage 9
Loan Loss Provisions – Trough to Peak – Very Manageable 9
Bank Earnings Momentum – Turning Positive in Q4/08 11
Bank Financing – Aggressive Funding 12
Credit Market/Interest Rate Indicators 12
Bank Relative Performance – Bear Markets, Recessions 13
Periods of Greatest Bank Share Underperformance – Revisited 13
Appendix 1 – List of Exhibits 75