Friday, May 8, 2009

Banks React Randomly to Stress Test Results


If you knew which banks were going to be given the increased capital requirements before the close yesterday, it would have probably hurt you. That is, banks under review are up about 7%, but Fifth Third is up 50%, and it was in the 'bad' half (it needs to book capital by 23% of current market cap).

Markets are very complicated. Caveat emptor.

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