BAC is trending better on key metrics, but still not optimized in cards, resi-mortgage and home-eq. Derivatives continue to be a huge outlier and cornering the retail deposit mkt could raise regulatory ire. Buy stock, most Bonds. Risk-reg most tenuous of big US banks. BAC BAC BAC
GS hit a big trading pothole, as the rest of the franchise was not enough to backfill. Still, we believe GS ripped some gains out to make it less awful. Stock takes a beating today, but we are a Stock/Bond buy on pullback. Risk-reg at medium levels of concern. GS GS GS GS GS
JPM EPS beat consensus as its economic earnings juggernaut chugs through rising US rates, FinTech competition, and a regulatory rollback pause. Buy Stock, Buy sub versus sr. debt, sell preferreds. Risk-reg tame. jpm jpm jpm jpmorgan jpmorgan jpmorgan
WFC has been dragged through the regulatory & litigation mud as it mistreated retail customers in a UAL way. Still strong economic earning drivers, but there was drop-off in trends. Buy Stock, Sub Debt in favor of Sr. Debt, and Pfd. Risk-reg tame. wells fargo welss fargo welss fargo wfc wfc wfc
Citigroup is turning around, but is it even fast enough to grow earnings from here as its growth drivers are limited to capital markets trading and related banking. ALM levers are so far awful with limited ability to build growth drivers. Buy Stock, and most debt. Risk-reg at medium level. C C C citi citi citi
Zions has rifled through the booms-and-busts of the Rocky Mountain region for the last 35 years. A spurt of SBA lending and ABS could be next black-eye. Sell Stock, Buy Bonds, risk-reg. Medium for a regional bank.
Citizens Financial is forging its identity as it enters the teenage years of its independent phase as a large regional bank. Taco Bell & McDonalds seems to be the answer as it works late into the night and binge-feeds along the way. Buy Stock, some Bonds, risk-reg stable.
Northern Trust has transformed itself into a southern, western customer base configuration as it keeps up with Illinois' "Great Wealth Out-Migration". Sell on most of debt stack, but Buy on Stock with some takeover appeal. Risk-reg stable.
Deutsche Bank's 2016 annual report is not a source of comfort. Viola Risk believes the entire equity rights raise will be wiped out by the toxic Level 3 derivatives exposures. Remain Sell on debt/equity stack. Extreme High Risk to counterparties and systemic regulatory authorities. DB DB DB Deutsche Deutsche Deutsche deutsc db db dbhe deutsche
We know, that STI has been bandied about as a Takeover target for the last 30 years and avoided it. But now that Florida is the 3rd largest state in the USA, it could be a sitting duck for a big bank like JPMorgan. Buy stock, sell debt stack, Risk-reg is contained. STI STI STI SunTrust SunTrust SunTrust