PNC Financial releases earnings soon. Ponder this Bear Case Scenario as you consider your stake:
As loan portfolio is expanded underwriting standards may be relaxed with the eventual loan losses working their way through the system to a balance sheet near you.
New banking regulations will impact PNC’s efforts to control its expenses.
The benefits of purchase accounting accretion from PNC’s discounted acquisition of RBC Bank USA affect net interest margin.
In summary PNC has some interesting factors which can easily crumble and turn into problems.
George Gutowski writes from a caveat emptor perspective.