As time went on our banking regulators allowed Wall Street to develop all sorts or mortgage loan products and to package them carte blanche into derivative securities, which eventually choked investors around the world who did not understand the trumped up stories Wall Street presented. The problems first surfaced with subprime mortgages and soon after that other type of derivatives imploded and the Great Credit Crunch began.
Today I am profiling the four 'too-big-to-fail' money center banks to show how they are thriving thanks to the free money given to them since mid-December 2008.
On July 22 I wrote, Big Banks Are Beating Earnings Estimates and showed that three of the four big banks were bigger in terms of assets in the first quarter of 2013 vs. the end of 2010. Here are the profiles that incorporate second quarter data from the FDIC.
Bank of America (BAC) ($14.36 vs. $14.75 on July 19) set a multi-year high at $15.03 on July 23 and maintains a hold rating, and is trading just above its 50-day simple moving average at $14.20. My semiannual value level is $10.09 with a monthly pivot at $14.26 and annual risky level at $17.07.Bank of America increased assets in the second quarter by $21.2 billion to $1.658 trillion, which is 11.5% of the total assets in the banking system. Citigroup (C) ($49.22 vs. $52.35 on July 19) set a multi-year high at $53.56 on May 30 then traded as low as $45.06 on June 24. This hold rated bank is below its 50-day SMA at $50.55 with a semiannual value level at $47.14 and a monthly risky level at $54.62. My annual value level lags at $33.19. Citigroup increased assets in the second quarter by $7.147 billion to $1.315 trillion, which is 9.1% of the total assets in the banking system. JP Morgan (JPM) ($52.56 vs. $56.16 on July 19) and ended August at $50.53 after setting a multi-year high at $56.93 on July 24. September began with JP Morgan upgraded to buy from hold according to www.ValuEngine.com. JP Morgan is trading between its 200-day SMA at $49.57 and its 50-day SMA at $54.00. My semiannual value level is $50.37 held at the end of August. Lower annual value levels are $44.04 and $42.87 with this month's risky level is $57.50.
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