The Market Just Held a Stress Test: Morgan Stanley, Met Life and Citigroup Flunk

Met-Life-and-Morgan-Stanley-Both-Drop-by-More-than-10-Percent-on-Friday

By Pam Martens and Russ Martens: June 27, 2016

Wall Street On Parade has reported on multiple occasions that the Federal Reserve has no idea what it’s doing with its stress testing of the largest banks on Wall Street. Last Friday’s market action, following the Brexit vote in the U.K. to leave the European Union, proved just how feeble the Fed is when it comes to assessing systemic risk and capital vaporization at the deeply interconnected Wall Street mega banks.

While the Dow Jones Industrial Average dropped 3.39 percent at the close on Friday,Morgan Stanley lost a stunning 10.15 percent of its market capital in a 6-1/2 hour trading session. At that speed, Morgan Stanley’s equity market capital could be wiped out in 10 trading sessions were this Brexit panic to continue.

Citigroup, which became a basket case during the 2008 financial crisis, ending up as a penny stock and requiring the largest bank bailout in the history of financial markets, lost 9.36 percent of its market capital in Friday’s trading session. Bank of America lost 7.41 percent while Goldman Sachs closed down 7.07 percent.

As if to underscore that this panic selling is related to the trillions of dollars of derivatives on the books of the banks, Wells Fargo, which has a much smaller exposure to derivatives than the other major Wall Street banks, lost a much milder 4.59 percent on Friday.

The Market Just Held a Stress Test Morgan Stanley Met Life and Citigroup Flunk

Source: The Market Just Held a Stress Test: Morgan Stanley, Met Life and Citigroup Flunk

Comments are closed here.

We Have No Idea What The Underlying Reality IS. However, I assure you it is more evil than anything you can imagine.

The Facts:There appears to be attempts from several sides of the spectrum to normalize pedophilia and bring social acceptance to pedophiles. Reflect On:Are the efforts to humanize pedophiles and bring

June 27, 2019
The Story of Q and the Second American Revolution

I have been following Q since it’s earliest appearance and have mentioned the phenomenon on this blog shortly thereafter. I must admit, primarily due to a natural impatience, that there have bee

June 27, 2019
Skip to toolbar