Wells Fargo

Fed "Stress Test" Results Are Out: Everyone Passes Even As VIX Hits 70

Moments ago the Fed released the first phase of its annual stress test which, once again, found that all thirty-four of the US largest banks "passed", exceeding minimum projected capital and leverage ratios under severely adverse scenarios, based on their projected ability to withstand economic shocks

Frontrunning: June 15

  • Markets Are Sliding Again (BBG)
  • Trump’s Legal Peril Deepens as Mueller Expands Scope of Probe (BBG)
  • Trump blasts report on possible obstruction of justice probe (Reuters)
  • Putin says ex-FBI head Comey gave no proof Russia meddled in U.S. election (Reuters)
  • The Fed Is Flying Blind (BBG)

The Value Of "Lunch With Warren Buffett" Plunges 22%

The winning bidder in legendary investor Warren Buffett’s annual charity auction has pledged $2.68 million for the privilege of eating lunch with the billionaire investor... about $800,000 shy of the record sum of $3,456,789 paid in 2016.

Frontrunning: June 7

  • Islamic State Claims Rare Attack on Iran Parliament, Major Shrine (BBG)
  • UAE turns screw on Qatar, threatens sympathizers with jail (Reuters)
  • U.S. Oil Exports Double, Reshaping Vast Global Markets (WSJ)
  • Trump’s Closest Allies Warn President It’s Time to Stop Tweeting (BBG)
  • Trump Taps Former Assistant Attorney General Christopher Wray as New FBI Chief (WSJ)
  • Poll: Pound Could Plunge to $1.20 on Friday (BBG)

"Now The Pain Begins": S&P, Moodys Cut Illinois To Near Junk, Lowest Ever Rating For A U.S. State

“We’re going to start to see some real pain now,” Senate President John Cullerton told reporters in Springfield on Wednesday after both S&P and Moody's downgraded Illinois to just above junk, the lowest ever rating for a US state. “We’re going to start to see downgrades. We don’t have any funding for schools. We don’t have any funding for higher end and a bunch of social programs.”

Frontrunning: May 26

  • Trump's first G7 expected to be 'challenging' (Reuters); Trump Saves Worst for Last on Foreign Trip (BBG)
  • Trump Blasts German Carmakers' U.S. Sales and Threatens Barriers (BBG)
  • Trump directly scolds NATO allies, says they owe 'massive' sums (Reuters)
  • Trump Likely to Maintain Obama’s Russia Sanctions (WSJ)
  • Juncker says Trump was not aggressive on German trade surplus (Reuters)

US Household Debt Surpasses 2008 High, Hits Record $12.7 Trillion

“Almost nine years later, household debt has finally exceeded its 2008 peak. This record debt level is neither a reason to celebrate nor a cause for alarm. But it does provide an opportune moment to consider debt performance,” said Donghoon Lee, Research Officer at the New York Fed.