Company Reports

GS stock has been on a tear up +32% total return, #2 to BAC. We look at the Level 3 dynamics as we roll through the rising risk appetite. GS has prepositioned for DFA/Volcker Rule rollback. Still Buy across cap.stack. Risk-reg inbounds. GS GS GS Goldman Sachs Goldman Sachs Goldman Sachs

Credit Suisse is like an aging capital markets rock star. Once famous, now not too pretty to look at and tough to listen to. Fall-off in debt capital markets is a serious investment banking problem as it becomes less relevant for higher margin M&A and corporate finance. Big in equity derivatives, but no color. Thiam turnaround in rocky patch. Sell cap.structure and high counterparty and systemic risk. CS CS CS

Huntington Bancshares was in the growth desert and drank the wrong M&A fountain of youth flask with Merit deal. Big shareholder value destruction hole to dig out of. So, sell across capital stack, although fair value in Series C Pfd. HBAN HBAN HBAN Huntington Huntington Huntington

Citi needs to breakup the bank to get to attractive ROICs. It will try to skate by with bigger shareholder payouts, but risks getting mauled by legacy players and new entrants. Still Buy some of cap structure; risk-regulatory contained. c c c citigroup citigroup citigroup citi citi citi

BAC has done a good full body makeover, but still needs to amp up its escape velocity if it wants to generate attractive ROICs. Big swaps book and little consumer volumes growth shows that big deposits not being invested well. Buy Cap Stack, risk-regulatory contained. BAC BAC BAC Bank of America Bank of America Bank of America

​Comerica is a cyclical commercial loan company. But energy recovering, auto/technology still strong. Sell capital stack except for sub.debt. Risk-reg fine

Discover not worried as much about FinTech as it never mentions it. Still, we believe DFS' fat margins are sustainable leading to our Buy on the capital stack and comfort level on the risk-regulatory stack. DFS DFS DFS Discover Discover Discover

Regions Financial suffers from regional bank-itis from its name to its operations. Poor positioning in "Deep South" leads to various whipsaw cycles whether weather-related (Katrina), man-made oil-rig disasters (Deep Water Horizon), or economic like condos on Gulf and 2015 energy pull-back in TX. Sell capital stack as fully valued. Low risk-regulatory profile. RF RF RF Regions Regions Regions

AmEx kicks off 10K season for specialty finance and has a litany of payment system worries. Plus comments on Brexit, the Euro & Euro Zone & immigration barriers. Sell capital structure, low counterparty and systemic risk.AXP AXP AXP AmEx AmEx AmEx American Express American Express American Express

State Street is at strategic cross-roads as its hallmark businesses are shunted by bigger bank players, pricing pressures from low rates and big customers, shift to low margin funds management and regulatory costs that hurt its income statement more. Sell stock and overpriced bonds. Hold counterparty & regulatory exposures. State Street State Street State Street