XLF - JPMorgan And Bank of America Are Calling The Fed's Bluff
2024-07-08 10:00:00 ET
Summary
- The Fed has come out with its stress test results.
- Last year, Bank of America put that test into question, and this year JPMorgan has done the same.
- You have to engage in due diligence regarding the banks that house your hard-earned money - and you certainly cannot rely on the Fed.
The Fed has recently announced the results of its annual bank stress tests. We have written a lot about why the Fed's stress tests do not reflect how the actual financial conditions of U.S. banks would look under a sharp recession scenario. It seems we are not alone.
Just several hours before the Fed announced its results, JPMorgan ( JPM ) issued a press release , saying that, under its own assessment, the benefit in Other Comprehensive Income (OCI) appears to be too large. As a result, JPM’s own stress tests show that the bank’s losses would be higher than those disclosed by the Fed....
JPMorgan And Bank of America Are Calling The Fed's Bluff