Yesterday we advised that JPM's stock looks like it wants to test $25 based on its chart action, and if downtrend channel support does not hold at $25, Blythe & friends are looking at a bloodbath.
Morgan Stanley and Bank of America have been on death watch for months now, and the rest of the TBTF scum are not far behind thanks to massive derivative losses.
Welp, The Fed didn't help things any, just announcing that it will require our favorite 6 banks to undergo stress-test 2.0 against "hypothetical" market shock.
Apparently The Fed calls the failure of Italian or Spanish debt "hypothetical". We would have termed it IMMINENT, but we never graduated from MOPE school.
The Federal Reserve plans to stress test six large U.S. banks against a hypothetical market shock, including a deterioration of the European debt crisis.
The Fed said it will publish the results next year of the tests for six banks with large trading operations. Those banks are Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo.
Read more from Reuters: