Banks will have extra time to build up cash buffers to ensure protection against market shocks under a rule change that would help free up loan for stressed economies, according to a European regulatory source.
The Basel Committee, one of the key international groupings for banking regulators, is projected to declare the revision on Sunday to its “liquidity coverage” ratio or LCR, part of a plan to make banks less probable to need taxpayer help again in a difficult economic situation.[article_detail_ad_1]
The change is set to be made after heavy pressure from banks and some regulators, who feared Basel’s original version would suck up high level of liquidity at a time when ill economies are poorly in need of a ready supply of loan to finance growth. The sources said that banks were mandatory to follow the LCR by 2015, but will now get more time.
In other news, Wall Street analysts are lifting their estimates for U.S. banks and brokers, citing the end of the uncertainty, at least for now, over the U.S. budget deal and the European debt crisis.
JMP Securities analyst David Trone yesterday raised his profit outlook for big bank stocks 25% on average for the year and moved his recommendation to a neutral rating from the equivalent of a “sell” rating on several stocks.
Citigroup Inc. (NYSE:C) jumped to new high yesterday. The stock, as of last close, traded 68.32% up from its 52 week low and was -0.02% behind its 52 week high. Its latest closing price was 28.25% above the SMA200 while the distance from SMA 50 and SMA 20 was 11.43% and 7.82% respectively. The stock has a 6-month performance of 50.84%.
JPMorgan Chase & Co.(NYSE:JPM) was upgraded from “underperform” rating to a “market perform” rating by JMP Securities. Its share price, as of the latest close, was up 46.84% compared with the 52 week low and was -1.97% below the 52 week high. The stock’s latest closing price was up +13.77% from the average-price of 200 days while it kept its distance from the SMA 50 at +6.31% and +3.42% compared with the SMA 20. Its six-month period performance stands up at 24.78%
Bank of America Corp (NYSE:BAC) retreated from new high and closed down on Thursday.
Credit Suisse Group AG (ADR)(NYSE:CS)’s latest closing price was 15.98% up from an average-price of 200 days while it maintained a distance from the SMA 50 at +6.17% and +2.14% compared with the SMA 20. The stock was up 56.76% from the 52 week low and was -12.97% below the 52 week high. It has shown an uptrend of 11.08% in the same period with a monthly performance of 6.52% and 3-month performance up 16.11%.
As of last close, Wells Fargo & Company(NYSE:WFC) was 27.73% up from the 52 week low and was -4.42% below the 52 week high. Its latest closing price was +4.72% up from an average-price of 200 days while it kept its distance from the SMA 50 at +4.11% and +2.55% compared with the SMA 20. The 6-month performance of this stock stands at 4.95% with a gain of 0.81% in the last three months and +29.51% in the previous twelve months.
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