Financials: European bank stress tests - the amount of companies being tested could expand substantially to as many as 100 $NYX $GS #SPAIN Banks starting to devise ways to avoid the UK bank levy

Financials

· European bank stress tests - the amount of companies being tested could expand substantially to as many as 100; European leaders have already agreed to publish test results for 26 banks in mid-Jul (the FT says Jul 15).  But now, the amount of companies subject to the test may expand to 100+.  a German official said the country's eight Landesbanks had agreed to publication.  FT    http://www.ft.com/cms/s/0/35f59c0c-824b-11df-9467-00144feabdc0.html

· Spanish stress tests - Stress tests of Spain’s financial sector will prove the strenth of the country’s banks, Prime Minister Jose Luis Rodriguez Zapatero told reporters – Bloomberg

· Germany bank stress tests - The heads of Germany's central bank and financial market watchdog have called a meeting for Wed with the country's largest banks to discuss stress test results; The Bundesbank was preparing the groundwork for a possible new round of state support for banks which fail the tests - Reuters   

· Wall St hiring again – Wall St firms are adding jobs for the first time in 2 yrs; In New York, 6,800 financial-industry positions were added from the end of February through May, the largest three-month increase since 2008 – Bloomberg 

· Standard Chartered – takeaways from today’s trading statement - Overall today’s release is in line with Q1 IMS statement with a strong performance in the first five months of the year. Whilst revenue guidance appears in line, costs are running ahead of our estimates offset by lower impairment charges. Consensus is unlikely to change materially although there is modest upside risk to our estimates. Currently trading on 2.1x 2011E P/NAV for a RoNAV 18.5%, today’s statement supports the investment case at Standard Chartered.  

· Banks starting to devise ways to avoid the UK bank levy – banks are now looking to specify which assets in particular should be subject to the levy while others are considering shifting their activities outside the UK to minimize the damage (WSJ)   http://online.wsj.com/article/SB10001424052748704846004575332300826131866.html?mod=WSJ_hps_LEFTWhatsNews

· GS – the co was ordered to pay $20.6MM to unsecured creditors of Bayou Group, who had accused Goldman of ignoring signs of fraud at the hedge fund firm (WSJ)  

· NYX – pos. comments; valuation cheap; investors aren’t giving the co credit for its derivatives business; costs have been cut substantially; the stock could at least have 20% upside – Barron’s

· Rating agencies – the head of Standard Chartered is calling for rating agencies to be banned from rating complex financial products – London Telegraph.  http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7856535/Bank-chief-calls-for-ban-on-distorting-credit-ratings.html

· Bank failures – 3 announced over the weekend; up to 86 in ‘10 – 1) High Desert State Bank, Albuquerque, NM ($80MM in assets; First American Bank assumes assets/deposits); 2) First National Bank - GA, Savannah, GA ($250MM in assets; The Savannah Bank assumes assets/deposits); 3) Peninsula Bank, Englewood, FL ($644MM assets, Premier American Bank assumes assets/deposits)

· Private equity valuations diverge – different PE firms are placing varying valuations on the same companies (FT)   http://www.ft.com/cms/s/0/abe06b00-821d-11df-938f-00144feabdc0.html