What We're Reading

Today during the Fed's testimony to the House Financial Services Committee, Liz Warren waited her turn patiently until the end of the day.  I just love Liz for saying it the way it is.  No holds barred.

After comparing Lehman at the time of it's collapse, LEH had $639 Billion in assets.  Today JPM has $2.5 Trillion (more than 4x LEH) in assets.  LEH had 209 subsidiaries.  Today JPM has.........are you ready for this...............3,391 subsidiaries!  Too big to fail?  Wowwww.

Then once done pointing out JPM's notably 15 times more subsidiaries than Lehman, Liz went on to question JPM's resolution plans to remain viable in case of a risk event.  Clearly determined to make one thing crystal clear to the Fed's Janice Yellen, she went on to say..............well, you watch the two minute clip.

While the market continues to digest yesterdays' comments from new Fed Chairwoman Janice Yellen that rates will begin to rise possibly as early as six months after tapering is complete (mid-2015 rather than late 2015), banks are definitely yelling pahtay with big gains across the financial sector today.

Even $C (who I normally detest) is attempting to breakout of a beautiful double bottom pattern. 

Like it or not, banks will be more willing to lend in a rising rate environment and let's face it; it's tough to make a buck when you're lending at 3%.  I would imagine this will be good for broker/dealers as well although not shown here.  Now if only we could get Congress to do away with that pesky transaction tax debate.  Life would be wonderful.

Full disclosure; I'm long JPM and loving today's action.