Fed is using Citi and BofA as an outlets to bail others. I am sure both banks do not need any financial help.
This will get much uglier going forward. On a National basis housing has barely even downticked and prime lenders are already in jeopardy. I laugh at talk of the Fed or Congress "bailing out" the home industry. Intervention is great if it's an actual solution but no amount of relief can aid the situation if we do indeed see a 30% across the board decline in residential values.
xlf could barely buy an uptick today( and all week) except for Cramers eod LEH rumor pump. Home "short sales" are up HUGE over last year already.
Bank of America replaced Bear Stearns as a member of the Plunge Protection Team. Bear Stearns got benched from the PPT to recuperate from its Hedge Fund liquiditiy problem. Bank of America showed its muscle with the Countrywide Financial liquidity infusion plan. These events has Uncle Ben's fingerprint all over it.