US Bancorp is about to release earnings. Ponder this Bear Case Scenario if your belief in USB might waiver.
Regulators limit dividends to 30% of earnings no exceptions. The company does not have the ability to trick yield oriented investors.
As long as interest rates stay low margins will be small and difficult to expand.
Additional regulatory burdens may be on their way as Obama seeks to beat up Wall Street.
In the next crisis will USB be asked to fix something in the marketplace that they will regret shortly thereafter.
George Gutowski writes from a caveat emptor perspective.