Bank Stocks: What Could Still Go Wrong [View article]
The stress test was simply a PR exercise to instill investor confidence. It was carefully done, not all banks got A+ grades some only got B- but everyone passed the test. The results were well known, and as the leaks come out – the results were actually negotiated. The cumulative shortfall in capital was only $ 74 B, conveniently less than $110 B left in TARP.
If the investors buy into the test, than all is well. The early indications are – banks have been able to quickly raise the cash – some investors have voted with their money. Lets’ see what unfolds in the coming weeks. I am not buying the banks or the market.
Bank Stocks: What Could Still Go Wrong [View article]
If the investors buy into the test, than all is well. The early indications are – banks have been able to quickly raise the cash – some investors have voted with their money. Lets’ see what unfolds in the coming weeks.
I am not buying the banks or the market.