hidden disaster omens for us banks per "wall street on parade"
"The Standard and Poor’s 500 Index fell by 1.16 percent yesterday while big banks on Wall Street fell by three, four and five times that amount. Morgan Stanley fell by a whopping 5.75 percent, helping its decline along by announcing at a conference that its wealth management division has been experiencing a slowdown since March. JPMorgan Chase, which serially touts its “fortress balance sheet,” shed 4.27 percent. Citigroup and Bank of America were down 3.99 and 3.98 percent, respectively, while Goldman Sachs shed 3.40 percent. All of the banks traded on heavier than normal volume – another negative signal.
The carnage in U.S. bank stocks followed turmoil in Italian bank stocks overnight and selloffs in broader European stock indices over Italy’s failure to form a coalition government and the prospect of a new fall election that may fuel more anti European Union sentiment.
Adding to financial alarm bells was a further decline of 6.22 percent in the share price of Deutsche Bank, a major player on Wall Street. Since the start of this year, Deutsche’s stock has lost a stunning 41.5 percent of its value and the company has been forced to announce it is slashing thousands of jobs. In 2016 the International Monetary Fund (IMF) issued a report that singled out Deutsche Bank as a significant contributor to systemic risks globally. A graphic (see below) showed that contagion from Deutsche Bank would have outward spillover effects to each of the Wall Street banks that traded poorly yesterday: Morgan Stanley, JPMorgan Chase, Citigroup, Bank of America and Goldman Sachs."
http://wallstreetonparade.com/