‘Smart Trade Group’, the Asian-based wealth manager, believes that news emerging of a three day delay in the publication of the results of the recent government-led stress tests on 19 of the largest US banks could yield profits for investors.
The firm is convinced that the stock prices of several US banking giants will tumble should it emerge that they need additional Treasury funding following the publication on Thursday 7th May.
Sources close to ‘Smart Trade Group’ are thought to believe that the delay was necessary because the authorities need to decide how to manage the potential fallout from a run on banks that investors see as being weak.
Although ‘Smart Trade Group’ has not revealed which banks’ stocks it intends to short sell, one of the sources said that the potential for a profitable trade existed and that it was the firm’s duty to pursue it on behalf of its clients . ‘Smart Trade Group’ is reportedly of the opinion that stocks in banks which do not need further funding from the US government will more than likely be strong candidates for acquisition by investors looking to benefit from the eventual recovery in the US economy.
