Bank of America Merrill Lynch analyst Erica Penala said in a report that Citigroup's results were a "clear standout," that implied "significant long-term capital return capacity." The analyst reiterated her "buy" rating for Citigroup, while raising her price target for the shares to $50.00 from $46.00.
Bank of America was also called a stress-test winner by FBR analyst Paul Miller, after the Federal Reserve said the bank would weather a severe recession with a minimum tier 1 common equity ratio of 6.8%, despite projected pre-tax losses of $51.8 billion. Bank of America's own stress tests -- using the same economic scenario as the Fed -- showed potential pretax losses of $43.8 billion, with a minimum Tier 1 common equity ratio of 7.7%.
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