Which Wall Street Bank Will Most Likely Fail?
From Greg M
Lions and friends…
If I had to speculate as to which Wall Street Bank is most likely to fail, I would say that it would be (BAC) Bank Of America.
This bank stock has been cut in HALF in just under 2 years, and with that, I believe that BAC is holding an enormous amount of bad debt.
Currently, Bank of America has a market cap of 205.9 Billion, and a derivative exposure of $50.135 Trillion dollars. (BAC derivative exposure is on par with most other Wall Street Mega banks).
At the end of 2022, Bank of America had $862 billion of debt securities on its balance sheet totaling roughly $3 trillion. Of that, BAC held $632 billion of bonds. Taking into account the current selloff in debt/rising yields, the value of BAC debt portfolio has taken a substantial hit.
Have a look at this chart below.
The purple line is the S&P500 with BAC being the black line. Clearly BAC has grossly underperformed the S&P500. With that, pressure on BAC stock is likely to get worse causing the stock price to fall even farther.
BAC position in the banking industry.
If you take a look at the chart below, BAC is at the bottom rung.
It is for these main reasons why it is my belief that if I had to pick just one Wall Street Bank which is most likely to fail, it would be BAC.
GM
The bond market selling is off. We soon may witness a Big Bank fail? Isn’t O’Bidenomics just peachy keen?
God help us all as we are now witnessing the birth pangs of the greatest Finacial Apocalypse in human history? When will people wake up to the reality that the destruction of the entire middle class is currently happening in real time before all discerning eyes to see?
Can you imagine if this destruction was occurring under Donald Trump? The climate cult policies, the wasteful spending/reckless money printing, the funding of the corrupt Ukraine war, the bringing in of millions of illegal aliens and the continuing promulgation of scandemics/Plandemics have ushered in the end times?
It all started with artificially manufactured low interest rates. The era of free money is officially over. What will the parasites of Washington DC, the Wall Street fraudsters and the Central banker manipulators do next? How will they the shift blame this time? And how will the citizenry react when they realize the Ponzi scheme is now coming to its predictable and somber conclusion ?
Will the Uniparty present a CBDC Big Brother Central Banking Digital Currency to “save” the day? Will the worry and fear people have now cause them to accept this new demonic beast system ?
The latest “wag the dog” distraction will be the ousting of the GOP speaker of the house, Kevin McCarthy ? This should keep the convenience drones lost for a bit while the whole financial system collapses.
We exist within a world of illusion and where propaganda runs wild. God help us all….
Great analysis, my second guess would be Wells Fargo