Thursday, April 2, 2009

Citi: Bank Stocks Will Fall

A Citigroup strategist advises clients to buy puts on bank stocks, since the recent run-up in bank stocks will likely fade. From Bloomberg:
Investors should buy put options on financial companies because derivatives-market trading suggests the industry will retreat after a 43 percent surge since March 6, Citigroup Inc. said.
Guess that means suspending mark-to-market won't have an effect. Who would have guessed that banks lying about their balance sheets won't make them any sounder?

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