Now that the stress test is completed, which gives clarity to the capital situation and what is available for the banks to pay dividend and do buybacks, here is an estimate from Wells Fargo research. This table shows how much capital is available to the banks, if they choose to do buybacks. Still many regional banks may chose to preserve capital for M&A, recession, growing business, etc.
Many regional banks are looking good. I haven’t looked at it, I might buy some bank preferred’s that yield above 6.5%. Currently all my fixed income are in treasury bills.
