Fed bank stress tests are due up after the equity close - ForexLive

The Fed's annual stress test is coming up at 4:30 pm ET

If you go back to 2009, these were one of the things that kept the equity market rally going from the March bottom.

The twist this time is that the Fed is doing a sensitivity analysis, but no one is really sure what that will mean for capital plans. The entire methodology is now.

Should banks cut dividends to preserve capital? Probably. But Randy Quarles and Jerome Powell were hand-picked to ease regulation on banks and I just can't see them doing anything that Jamie Dimon doesn't like. I'm not the only one thinking that way, shares of JPMorgan are up 4% today, including a strong bid in the past 30 minutes.

One bank that may be vulnerable is Wells Fargo, which is sitting just above March levels.

On the headlines, watch out for how many banks fail. A few are expected but so long as they aren't the big names, then I think the market will be fine. There are usually about 35 banks tested.

For bank trade ideas, check out eFX Plus

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiaGh0dHBzOi8vd3d3LmZvcmV4bGl2ZS5jb20vY2VudHJhbGJhbmsvIS9mZWQtYmFuay1zdHJlc3MtdGVzdHMtYXJlLWR1ZS11cC1hZnRlci10aGUtZXF1aXR5LWNsb3NlLTIwMjAwNjI10gEA?oc=5

2020-06-25 19:32:34Z
CBMiaGh0dHBzOi8vd3d3LmZvcmV4bGl2ZS5jb20vY2VudHJhbGJhbmsvIS9mZWQtYmFuay1zdHJlc3MtdGVzdHMtYXJlLWR1ZS11cC1hZnRlci10aGUtZXF1aXR5LWNsb3NlLTIwMjAwNjI10gEA