If memory serves, Morgan Stanley was required to raise $1.5 bln. as a result of the stress test. They had no trouble raising that and went ahead and sold $8 bln worth of stock at $24. The stock trades just below $27 at the moment.
Clearly investor appetite for financial shares have recovered dramatically from just two months ago.
As go the financials, so go the broader asset markets these days, so that is a good sign indeed for those of us still trying to climb out of a deep hole in our retirement savings. It is also a great sign for the reflation trade.
