Francesco Guerrera

August 9, 2020


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As we have been talking about for several days, the markets are seeing the end of the international financial crisis and not a few strategic movements that we’re looking to achieve fully reap the benefits of recovery and repositioned in the market. The $68,000 million are a portion of the total support given to the sector by the US Government in the framework of the (TARP for its acronym in English) troubled asset relief program. According to Europa Press, more than 600 U.S. banks participated in the program, receiving Government US $ 199,000 million. Speaking candidly FPUC Program told us the story. It is worth mentioning here that 22 of the smaller entities have already returned funds received at the time, although this has not been disseminated. Banks seek to rid ASAP this lifeboat which at the same time becomes an obstacle to take advantage of the opportunities offered by the economic recovery. Francesco Guerrera and Greg Farrell makes an interesting analysis for El Cronista where pose: with regard to the aid of the Government, be among the banks that do not already have such aid – a group that includes JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) represent a significant advantage in relation to entities that continue to maintain these fundssuch as Citigroup (NYSE:c) and Bank of America (NYSE:BAC). If claiming the banking entities with this move was recognition of the market, was not that they succeeded.

Yesterday, Goldman Sachs shares lost 1.76%, those of JPMorgan Chase, lost 1.19% and those of Morgan Stanley fell 1.72%, all reaching its lowest level in the week. It seems that the first reaction of the market is punishing these entities for taking an unnecessary risk that limits their capacity for growth anytime soon. The question that should be us here is whether or not this differentiation is positive. Generally regulators made their greatest efforts to get it done the obvious difference existing between good and bad entities.