Stress Test Flunkie Bank Of America Up 36% This Week

Up is down. War is peace. Stress test failure is only good news.

During a week in which there were several reports about Bank of America (BAC) needing to expand its capital cushion, by as much as $34 billion, shares in the bank have been on a tear. Last week they closed at $8.97. Today they’re 36% higher at $12.22.

It’s not a bad week for Ken Lewis, though the real winner is the government, which just have done enough spinning and leaking to find a way to release bad stress test results without hurting bank stocks. That was a tough tight rope to walk and they pulled it off.

Meanwhile, JPMorgan (JPM) — which won’t need any new capital, it has been confirmed — is up just over 10% on the week. Though to be fair, the company hasn’t been hammered nearly as hard as BofA has.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at