Milwaukee-based Marshall & Ilsley also has been stung by construction lending. Its shares, at around 18, trade at 1.1 times tangible book value. St. Pierre thinks it will earn $1.44 in 2009 and $2.75 in 2010.

PE of 8, and it pays a dividend of 7.3%.

From a recent Mad Money show: "This is a speculative institution right here. This one is not in my Fortress 4 and I'm not recommending it."

Regional banks, which had been pummeled until a sharp rebound that started Wednesday, have deposit bases that are so valuable that buyers of banks historically have paid sizable premiums to get them. Deposits now are being accorded little or no value throughout the banking industry as many institutions, including SunTrust Banks (STI), Marshall & Isley (MI), Comerica (CMA), Wachovia (WB) and Zions Bancorporation (ZION) trade around their tangible book values -- a conservative measure that excludes goodwill and other intangible assets.

Cramer: No Transparency, No Belief in Banks: Jim Cramer says the lack of bank transparency means he won't be buying any of the country's top banks.

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The piece is a virtual hit list of banks that need to refinance: Bank of America (BAC), Citigroup (C), Citizens Republic Bancorp (CRBC), Colonial Bancgroup (CNB), Comerica (CMA), East West Bancorp (EWBC), First Horizon (FHN), Huntingon Bancshares (HBAN), KeyCorp (KEY), Marshall & Ilsley (MI) (conviction sell!!) National City (NCC), Popular Inc. (BPOP) and South Financial (TSFG).

5/28/2008

Greenlight Capital plans to vote against a reorganization proposal for MI that was submitted by entities affiliated with Frank Stronach of the Stronach Group, its controlling shareholder. Greenlight said that its primary concern with the proposal is that the benefits received by Stronach are so "inequitable" that the reorganization is "patently unfair to the MI shareholders." Greenlight previously submitted a shareholder proposal asking MI shareholders to vote to have the board implement the value-enhancing proposals which the board itself developed and adopted unanimously in May 2005. They called for steadily increasing MI's financial leverage, regularly increasing dividends, repurchasing shares and rationalizing the company's relationship with Magna Entertainment (MECA). "To date, the board resolutions have not been implemented, despite the three years that have elapsed since the company's board adopted them," Greenlight said. Greenlight owns 4,975,000 shares (10.8%).

Marshall & Ilsley (MI) was downgraded to Neutral, Goldman Sachs said. Estimates also cut, as the company has high exposure to construction loans. $26 price target.

Marshall & Ilsley (MI) was lowered from Neutral to Sell, Merrill Lynch said. See material earnings risk following the most recent quarterly report. See 20% downside potential from current levels, because of higher credit losses.