It finally appears that the market figured out, or at least trying to figure out the good banks from the bad ones. Accordingly, their prices are diverging. Good ones going up and toxic ones looking for support. GS went thru the roof this morning. Have you guys noticed the trend? the problem here is that bad banks heavily outweight the good ones. what are some of your good banks and bad banks?
Bad Bank....MI Been accumulating 5 & 2.50 Puts for Feb/Mar/Jun the past few weeks....this bank is toast. The small regional banks who are a little too far leveraged have no chance in this market, no way the fed just bails out the little guys.
Believe it or not.....I guess MS fits in with the short list of good banks. and WFC BAC JPM C with the bad ones(but we already knew this)