Bloomberg reports that the much anticipated bank stress tests will be released Thursday, May 7 after the close of the stock markets.
The markets have stagnated over the last week or so while investors await the results.
Paul Miller, a former bank examiner and current analyst for FBR Capital Markets weighed in on how banks will fair:
When you start talking about 4 percent on risk-weighted assets based on the stress test two years out, most banks will be required to raise more capital,†Miller said in an interview yesterday. “I believe it will be as high as 14.â€
While most mainstream media news outlets have been leaning towards positive results, contrarian analysts are not so optimistic. Deep down in their guts, most savvy investors probably also feel something is amiss – I know I do!
In a recent interview at Disciplined Investor, Andrew Horowitz, Mike shedlock and Tyler Durden of ZeroHedge discussed the possibility that there has been so much good news priced into the markets, that a positive news story may actually be the catalyst that turns this rally into a correction or a re-collapse of the financial markets.
Could the results of the bank stress tests be the foot that stomps the green shoots we’ve heard about so much lately?
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