Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Analyst Mike Mayo’s “Dose of Heaven” Prediction Turns to Hell for the Banks on Thursday

Courtesy of Pam Martens

Closing Prices of Bank Stocks on June 17, 2021

By Pam Martens and Russ Martens

Mike Mayo, Banking Analyst at Wells Fargo

Mike Mayo, Banking Analyst at Wells Fargo

Wells Fargo bank analyst Mike Mayo appeared on CNBC this morning to paint a rosy picture for how banks would be treating the Fed’s less than dovish statement yesterday. Mayo said this about the banks:

“Back in the 70s or even 1994 the inflation caused unrealized securities losses, derivatives losses, asset/liabilities mismatches. So too much inflation is hell for banks. But we think what’s happening now is a dose of heaven. And so higher rates sooner can allow banks to finally earn more money on all those deposits that they’ve gathered. And so this means that assets reprice faster than their liabilities.”

What actually priced much faster than either assets or liabilities were the share prices of the mega banks on Wall Street. The cheery words had barely left Mayo’s tongue before the biggest banks on Wall Street went into a sharp swoon. His employer, Wells Fargo, fared worst of all. By 12:39 p.m. this is where things stood: Wells Fargo (WFC) was down 4.79 percent; Citigroup (C) was off by 4.22 percent; Bank of America (BAC) had lost 4.11 percent; Morgan Stanley (MS) had given up 3.93 percent; Goldman Sachs (GS) shaved 3.33 percent while JPMorgan Chase gave up 2.92 percent.


Continue Here


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!