The Banks Come Through

 | Jul 18, 2013 | 10:51 AM EDT
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The banks are the thing. It was the most worrisome group. I don't know a soul who thought this group could be the standout.

Now think of it:

  1. JPMorgan (JPM) had fantastic trading numbers. Just fantastic. And the company made it clear that it had the deposit growth and the equity growth and the fixed-income business.
  2. Wells Fargo (WFC) just made a fortune off the net interest margin and has reined in expenses wonderfully. The company is not afraid of a mortgage slowdown, because it has so many levers.
  3. Citigroup (C) was supposed to be hurt by the turmoil in emerging markets. You sure didn't see it. The quarter showed that Citi Holdings, which has been such a drag, won't be a factor by this time next year.
  4. Goldman Sachs (GS) put up a huge earnings beat. You always have to be careful with this one, because there are usually internal sellers when the sell window opens. But I liked the quarter, and on book value this one's very cheap, and it is now above where it was. .
  5. Bank of America (BAC) has gotten it together, and there is a fantastic net interest margin improvement and a terrific cleaning up of its own balance sheet. The stock is dirt cheap, and the company is putting the bad behind it.
  6. Morgan Stanley (MS), after diluting the business endlessly with more stock, has started a buyback, in part because of terrific trading and good equity markets.

Just shocked how good these numbers are. Shocked. And so is the market. 

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