Bad news in banking was the real story in the same day at the markets surge on positive economic data. Federal Reserve new capital requirements, totally defunct Congress leaving for recess with no extension of the payroll tax cut or unemployment benefits, and the IMF warning on world economy were a combination of news stories via the Drudge Report with major impact for the banking industry. The surge in stocks were followed by Monday's routing of bank stocks due to uncertainty in Europe. The commonality of all these issues for the banks is uncertainty. The new capital requirements will place additional strain on Bank of America. The bank has taken a beating in stock price, foreclosure practices, and consumer satisfaction to question the viability of the bank to survive the ongoing challenges. Second, a tax increase and unemployment benefits ending for many Americans in lieu of a deadweight Congress will be a tipping point for consumers who were able to keep up payments on … [Read more...]