Archive for the ‘Bank of America’ tag
After the Stress Tests
Some 19 banks holding approximately two-thirds of all US bank assets are being “stress tested”. One cannot be blamed for wondering why those banks, including Citigroup Inc, Bank of America Corp, JPMorgan Chase & Co, Wells Fargo & Co and Goldman Sachs, have not always had their assets under scrutiny by the regulatory authorities. What was being done before the stress tests were invented? It seems that instead of having ongoing supervision of the financial institutions, we are resorting to intermittent inspections.
Procerity’s Prognosis: Expect a sudden realignment in relative valuation of bank shares this week as the stress test results become known.