Both Meredith and Dick Bove released reports for record 2013 Bank stock performance based on identical expectations of a bigger and better payout from Bank of America , Meredith mentioning a figure of upto 8 times its current capped dividend for the stock performance to hit the high wires. The reports confirm the inkling of the markets that would be further jumped by a great performance in the stress test edition on currently and as the Yen trade begins to switch out once it probably hit the 90s in a never before mop up for speculators in the global markets.
Bank dividends aside, Bove and Meredith point out the higher plateau of earnings that will be achieved by bankc in the high tide of 2013 and 2014 that will stand them in good stead for their redesigned future as the pressure of regulation gets some recognition for them to proceed in rarified yet still available fresh air. Bove mentioned a figure of upto $38 B for the big banks profits up 50% from 2011 and as we expected all year long, more analysts fall in line toward the close of the year and trading is making a surefooted comeback but stilla lot of idle capital is available and housing lending has not taken off to the extent 2012 promised with New Housing starts down to 861k this month yet a high water mark and confirming the trend hit by a minute upward shoe at the beginning of the year data in charts we all saw the limited potential upside of any recovery from a recovery to 2006 levels
Unfortunately for Citi and the Global franchises from HSBC and UBS, Citi’s new stewardship has not engendered the required level of confidence yet except in pockets and HSBC and UBS are still earning brownie points this decade after a drawal from the largest global market in the US while even after over regulation has trampled a few feet, structured products, leveraged and high yield debt and even municipals are making a comeback investor appetite increasing at higher yields and borrowers accepting higher rates of interest for volumes and profits to come backafter discounting the bite from the increasing required rates of return int he fixed income markets as the US Dollar corrects itself to new equilibrium where it can effectively support domestic growth.
- Bank of America is Flush With Capital: Analyst(thestreet.com)
- Fed to Give Failing Stress Test Banks Second Chance – Bloomberg(bloomberg.com)
- Which Big Bank Has The Strongest Balance Sheet?(seekingalpha.com)
- Report: Bank of America delays higher account fees(miamiherald.com)
- How to Fairly Punish Bad Banks(fool.com)
- UBS bankers ( 36 ) to be implicated in Liborgate – but no manipulation can be found for gold or silver ?(fredw-catharsisours.blogspot.com)