60 days is volatility. First two points show that 100% of situations the bank under performed its peers.
The test cases were: National Australian Bank’s (NAB.AX) irregular foreign currency options trading issue in 2004; we consider this trading issue given its relevance to Australia. UBS (UBSG.CH) ‘rogue trader’ in 2011; we consider this situation given it was a high profile situation that had significant media, regulatory and public interest. JP Morgan (JPM.US) ‘London Whale’ in 2012; we consider this situation given it was a high profile situation that had significant media, regulatory and public interest. HSBC (HSBA.LN) AML in 2012; we consider this situation because it was also an AML issue. Standard Chartered (STAN.LN) AML in 2012; we consider this situation because it was also an AML issued. Wells Fargo (WFC.US) cross selling in 2016; we consider this issue because it was a high profile case that had significant media, regulatory and public interest. Commonwealth Bank of Australia (CBA.AX) AUSTRAC breaches in 2017; we consider this situation because it was also a recent AML issue in Australia.
Agreed as to perceived value. But in my opinion WBC is not trading at any discount to perceived value.
So why enter now. Sit on the sidelines and watch, especially given this analysis.
WBC Price at posting:
$24.88 Sentiment: None Disclosure: Not Held
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