NEW YORK ( TheStreet) -- On March 7, the Federal Reserve announced its results of mandated stress tests for the 18 largest bank holding companies. Periodic stress tests are a requirement of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Federal Reserve's implementing regulations. I am not going to summarize the results of these stress tests except to say that the four "too big to fail" money center banks passed their tests.
Today I am providing additional stress measures for these major money center banks based upon data from
The last time I profiled the four "too big to fail" was on Feb. 6, in
Overall we begin the week under a ValuEngine Valuation Warning with 65.5% of all stocks overvalued and with the finance sector 18.6% overvalued.Bank of America (BAC - Get Report) ($12.07 vs. $11.88 on Feb. 6) remains buy rated with the stock 6.9% undervalued with a one-year price target at $12.81. BAC opened Friday at a new multi-year high at $12.44, a level not seen since May 2011. The stock has gained 49.8% over the last twelve months with a reasonable twelve month forward P/E ratio at 11.42. BAC has a neutral weekly chart profile with declining momentum with the stock above its five-week modified moving average (MMA) at $11.56 and the 200-day simple moving average (SMA) at $11.73. My semiannual value level lags at $9.01 with a monthly pivot at $11.54 and annual risky level at $17.07. FDIC data shows that BAC increased its total assets by 16.6% to $1.69 trillion in Q4 sequentially. The bank has an asset to risk based capital ratio of 9.99% up from 9.69% in Q3, which is a sign of increased stress as risk based capital is supporting assets increasing at a faster pace making this "too big to fail" bank even bigger.
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