SocGen is the #1 Equities Derivatives player, and we diagnose the risk factors that could add to volatility in its systemic bank risk story. Sell across the Stakeholder Stack.
BNP showed little operating unit growth in retail banking and capital markets. International finance was growth driver. Still no transparency on equity derivatives and contribution to trading. Sell across capital stack as it is the most systemic bank in Europe. bnp bnp bnp bnp bnp bnp
Deutsche Bank wants to turn around, but the busienss units say no-way, and the capital shortfall persists for global bank systemic concerns. Still a Stakeholder Stack Sell across the capital structure and risk-regulatory stacks. DB DB DB Deutsche Deutsche Deutsche
Citi continues its makeover as Holdings falls by reporting wayside. High free cash flow shows lack of investing opps, which could re-awaken breakup the bank risks.
Goldman Sachs stock rallied the second most since the US presidential election. We hone in on reasons why from prop trading to VC/PE investing. More counterparty risk as it lenghtens derivatives duration. Buy bonds/stock.
Morgan Stanley keeps chugging along on its reinvention as a global wealth management focused firm with a broker/dealer attached. Should not step back into prop trading in a big way, unlike GS. So less Trump regulatory stack roll-back pickup. MS MS MS Morgan Stanley Morgan Stanley Morgan Stanley
JPMorgan sets the bar high in overall performance and economic earnings. It should get acquisitive in Europe to drive the stockval. Ok for rest of Stakeholder Stack. JPM JPM JPM JPMorgan JPMorgan JPMorgan
BAC is back on the NASCAR circuit as its earning engines are firing better. Still needs to prime them. Could hit trickier ALM interest rate rip tides with its higher agency MBS focus.
BNP Paribas looks like it is turning around, but we wonder what is underground. Equity derivatives & other complex derivatives is their love-affair and it could be what breaks the bank. BNP BNP BNP BNP
JPMorgan's 3Q16 10Q revealed its improved resolution plans and regulatory inquiries regarding sales practices. Improvement on one front, more mystery on another.