Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Seismo who wrote (41936)	12/17/2012 11:29:34 AM
From: Keith Feral	Respond to of 223383

Lower mortgage rates over the past 5 years have eliminated a lot of the risk. JPM expects loans losses next year to be around $300 million per quarter. It will probably take another year beyond that for BAC to get down to those levels. The accumulation of capital by the banks is really what I'm referring to. US banks have already exceed most of the requirements for Basel 3, and they will have even more accumulation of capital this quarter as they eliminate even more LT debt. At some point, BAC and C will catch up to JPM and WFC in terms of market cap next year, or at least close the gap. I think that will continue to reduce downward pressure on the yield curve like we saw this year.