The Reformed Broker, AKA Professor Plum, here with today’s Market Recap…
Today’s won’t be a legit recap as I am out of the office early today on a secret Golfing assignment.
The big news today was the post-stress test avalanche of secondary offerings from the banks.
Shareholders can Salute their Dilution while jamming to The Raconteur‘s video above.
From the San Fran Chronicle:
Wells Fargo & Co., Bank of America Corp. and other major financial companies that came up short in government stress tests took quick steps Thursday to shore up capital and confidence, most notably announcing plans to raise billions of dollars through common stock offerings.
Among the banks ordered to raise capital (and the amounts needed) are: Wells Fargo of San Francisco ($13.7 billion); Bank of America ($33.9 billion); GMAC LLC ($11.5 billion); and Citigroup Inc. ($5.5 billion). Among the companies informed they didn’t need to raise capital were American Express Co., Capital One Financial Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co.
As of this lunchtime writing, the markets were green, but I suppose anything’s possible, so stay alert out there and have a great weekend.!
Full Disclosure: I currently manage accounts that are long WFC and JPM. Do not trade based on anything you read here.