Jump to content

BAC Passes Stress Test According to WSJ!


Parsad

Recommended Posts

  • Replies 125
  • Created
  • Last Reply

Top Posters In This Topic

I don't think Berkowitz is going to look dumb to many people much longer.  He's got a ways to go, but I think this just the start for some of his positions.  I'm sure his SHLD is looking pretty good this year as well.  Again, those guys that jumped the ship near the bottom are going to regret their decision.  Cheers!

 

 

Link to comment
Share on other sites

I mean, if BAC didn't pass the stress test, what the hell was the whole point of the test?  BAC is basically the symbol of the American banking system in the markets right now.

 

I'd be very surprised if BAC didn't pass.

 

Link to comment
Share on other sites

According to different reports, they passed.  I hope they do file an amendment or something to ask if they can buy back shares in the 2nd quarter on.  I don't want them to increase their dividend anyway, until they've got their Tier 1 up at 10% and they've bought back some shares below tangible book.  Cheers!

Link to comment
Share on other sites

Bank Holding Company

 

first number:

Minimum stressed ratios

assuming no capital actions

after Q1 2012 (1)

 

second number:

Minimum stressed ratios

with all proposed capital

actions through Q4 2013

 

Ally Financial Inc. 2.5 2.5

American Express Company 12.4 10.8

Bank of America Corporation 5.7 5.9

The Bank of New York Mellon Corporation 13.3 13.0

BB&T Corporation 7.3 6.4

Capital One Financial Corporation 7.2 7.8

Citigroup Inc. 5.9 4.9

Fifth Third Bancorp 7.7 6.3

The Goldman Sachs Group, Inc. 5.8 5.7

JPMorgan Chase & Co. 6.3 5.4

Keycorp 6.3 5.3

MetLif e, Inc. 5.4 5.1

Morgan Stanley 5.4 5.4

The PNC Financial Services Group, Inc. 6.6 5.9

Regions Financial Corporation 5.7 6.6

State Street Corporation 15.1 12.5

SunTrust Banks, Inc. 5.5 4.8

U.S. Bancorp 7.7 5.4

Wells Fargo & Company 6.6 6.0

Link to comment
Share on other sites

Appendix C includes reports by company ... including PTPP. Dancing with some Springsteen in the background.

 

$44 billion of PTPP over a two year period under stress scenario.  That pretty much puts an annual floor of $22 billion/year for BAC.

Link to comment
Share on other sites

http://online.wsj.com/article/SB10001424052702303717304577277621266731402.html?mod=WSJ_hp_LEFTWhatsNewsCollection

 

"Gains in the financial firms' fixed-income businesses, which can account for as much as half of revenue, are putting companies including Goldman Sachs Group Inc., Morgan Stanley and the J.P. Morgan unit of J.P. Morgan Chase & Co. on track to report their strongest numbers since the first quarter of 2011, said bankers and analysts."

 

Even though they completely ignore Merrill Lynch, lets hope this is article rings true for 2012 Q1 as the fixed income business has been a big drag for the last two quarters:

 

ML's FICC revenue in 2011 Q1 was $3,954, ML net income $2,143

ML's FICC revenue in 2011 Q3 was $  314, ML net income - $ 302

ML's FICC revenue in 2011 Q4 was $1,218, ML net income - $ 443

 

 

Link to comment
Share on other sites

ok  I have a fairly large position in BAC now but is this one of those back the truck up and load up for a big windfall. SD was my horse but I am thinkng of placing a bet on two.

 

Back up the truck was several months ago, when a handful of us were backing up the truck.  Now it's stay the course on BAC and WFC, and look for other ideas for capital.  Cheers!

Link to comment
Share on other sites

ok  I have a fairly large position in BAC now but is this one of those back the truck up and load up for a big windfall. SD was my horse but I am thinkng of placing a bet on two.

 

Back up the truck was several months ago, when a handful of us were backing up the truck.  Now it's stay the course on BAC and WFC, and look for other ideas for capital.  Cheers!

 

You could do worse than putting money into BAC or WFC at current prices.  Actually, it sort of depends on the rate of return you're expecting from investing and how concentrated you already are in those names.

 

I likely will not be adding to those particular names. 

Link to comment
Share on other sites

TX what about AIG have we missed the boat there, or is the ceiling at 29 a good place to buy? I am now compressed for time, so looking for long term compounders which can be left alone for a few years. AIG seems perfect for that given the Fed stack and asset spinoffs. It is also slightly less black boxy inmo.

 

Though I am hoping for a pull back in the financials.

Link to comment
Share on other sites

TX what about AIG have we missed the boat there, or is the ceiling at 29 a good place to buy? I am now compressed for time, so looking for long term compounders which can be left alone for a few years. AIG seems perfect for that given the Fed stack and asset spinoffs. It is also slightly less black boxy inmo.

 

Though I am hoping for a pull back in the financials.

 

We definitely have not missed the boat on AIG.  The only reason I'm not adding to BAC is because I'm adding to other positions, including AIG. 

 

I'm very hopeful, by the way, that the government will not now mess with the AIG "tax break."  I actually like Elizabeth Warren, but geeze, the government should be doing everything it can to make a substantial profit on the AIG bailout.  Taking the action requested by Warren and others is exactly the wrong thing to do to make the taxpayers whole.

 

Stupidity.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...