Wells Fargo

Either Banks Are Cheap... Or The Market's Gonna Crash

Simply put, either large cap Financials are cheap, or the entire U.S. equity market is still overpriced. Their precipitous decline year to date means markets fear they are both the transmission mechanism for a global slowdown/recession to come and a primary victim of that event.

Is WalMart In Terminal Decline? This Chart Is One More Reason To Think So

In a testament to how the ground is shifting beneath the Bentonville behemoth’s feet when it comes to e-commerce, we bring you the following brief commentary and graphic from Wells Fargo, who shows that when it comes to retail sales growth in the US, WalMart is, well, damn near dead.

Frontrunning: January 27

  • Global stocks, dollar struggle ahead of Fed as oil falters (Reuters)
  • Bond Bulls Bank on Fed Mention of Market Chaos as Drag on Growth (BBG)
  • Fees on Mutual Funds and ETFs Tumble Toward Zero (WSJ)
  • China Climbs Back Up Janet Yellen's Worry List (BBG)
  • The World’s Favorite New Tax Haven Is the United States (BBG)
  • New Jersey Gov. Christie backs Atlantic City takeover plan (Reuters)

25 Years Of Fed Fueled M&A - The Enabling Of A Banking Oligopoly

Between 1990 and 2010, eventually 37 banks would become JP Morgan Chase, Bank of America, Wells Fargo, and Citigroup. The “Big Four” retail banks in the United States collectively hold 45% of all customer bank deposits for a total of $4.6 trillion... as the biggest got biggest-er all thanks to the very visible hand of The Fed's free money.

What The Big Banks Say About Their Energy Exposure

One thing is clear: banks are not only not telling the full story, but the story they are telling is compromised. Still one has to start somewhere with whatever data is publicly available, so courtesy of Reuters, here is a summary of what the big U.S. banks who have reported Q4 earnings so far, say about their energy exposure.

A Glimpse Of Things To Come: Bankrupt Shale Producers "Can't Give Their Assets Away"

The end of America’s oil “miracle” is coming and there’s nothing Wall Street can do to stop it. At this point in the game, no one is going to finance the oil patch's cash flow deficits and the fundamentals in the oil market are laughably bad. As Bloomberg reports, Wall Street is about to have a serious bout of “indigestion” because recent auctions suggest that “some bankrupt oil and gas drillers can’t give their assets away.”

Equity Futures Rise After Oil Rebounds From 12 Year Lows; US Markets Closed

With the US closed today for Martin Luther King Holiday, global risk tone has once again been set entirely by oil, which opened sharply lower at fresh 12 year lows on fears of an Iran oil glut, but has steadily rebounded on the latest OPEC comments, and at last check both WTI and Brent were unchanged trading in the low $29's on muted volume. With Asian markets mixed, European shares swung between gains and losses, while the yen weakened as China stepped up efforts to curb foreign speculation against its currency. Crude oil rose from a 12-year low after the Organization of Petroleum Exporting Countries forecast a decline in supplies from rival producers.

Wells Fargo Is Bad, But Citi Is Worse

"While we are taking what we believe to be the appropriate reserves for that, I'm just not prepared to give you a specific number right now as far as the amount of reserves that we have on that particular book of business."

Exclusive: Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears

The Dallas Fed met with the banks a week ago and effectively suspended mark-to-market on energy debts and as a result no impairments are being written down. Furthermore, as we reported earlier this week when first nothing the rumor, the Fed indicated "under the table" that banks were to work with the energy companies on delivering without a markdown on worry that a backstop, or bail-in, was needed after reviewing loan losses would exceed the current tier 1 capital tranches.