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Stress tests look tougher than expected

Published 02/02/2018, 07:32 AM
© Reuters.  Stress tests look tougher than expected
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  • The Federal Reserve last night released its instructions for this year's CCAR, and anyone expecting the central bank bureaucracy to go with the flow of the Treasury Secretary and president (i.e. back off a bit) will be disappointed.
  • Morgan Stanley 's Betsy Graseck is less optimistic on growth in dividends and buybacks, noting the test has more severe recessions and lower asset prices.
  • Goldman's Richard Ramsden agrees that the scenarios look tougher than last year, but still sees room for higher payouts in 2018.
  • Larger regulatory reforms will take time, says Baird's David George. Indeed.
  • Source: Bloomberg
  • Banks are lower premarket in the area of 0.5%, though not out of line with a general decline in the market averages as interest rates look like their beginning to spook just a bit. The cryptocurrency market is in full, all-out panic crash mode.
  • Related names: Bank of America (NYSE:BAC), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS).
  • ETFs: XLF, FAS, FAZ, VFH, UYG, FNCL, IYF, BTO, IYG, RYF, FXO, SEF, FINU, RWW, FINZ, JHMF, FAZZ, FNCF
  • Now read: A Great Bank That Made A Terrible Mistake - Wells Fargo


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