Wednesday, June 22, 2016

Yellen Clarifies To Congress Imminent Timing Against Banks Too Big To Fail

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*Wall Street does not know the timing when the Fed is actually allowed to break-up banks.
*Janet Yellen clarified timing in front of congress that they have the power to enforce this year.
*This move is important and negative to banks and the market because, we think, it would freeze credit.
*That could come ahead of the elections. Don't brush it off so easily as out of the question until you do the work yourself.

We've written multiple times (search "living will") that while timing is unknown to many Wall Street participants, based on the law, we could see action against banks as soon as this year. That would be actions against five of the biggest banks just ahead of the elections. We think the general financial community does not understand the potential imminence and importance of these actions. It will slow down the economy and act as a material credit freeze, if followed through.
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Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. #in, $spy, $qqq, $iwm, $vxx, $ycs, $fxe, $EUO, $YCS, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principle especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD BESTIDEAS, ITS CONTRIBUTORS AND ELAZAR ADVISORS, LLC HARMLESS

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