Special Bank Rally Edition!
Tonight I will be on Fast Money on CNBC at 5:00 pm discussing the rally in B of A and the rest of the financials and what it might mean:
• Bank management is engaging in some wishful thinking about share buybacks and dividends; Most are still on Fed life support.
• Today’s bank rally lets you know exactly what the Street thinks about the proposed mortgage settlement with State AGs for a mere $20B. It reflects a belief that it is a giveaway/bailout; Like the BofA putback settlement for 1 cent on the dollar, banks are hoping for a replay.
• Many AGs in high foreclosure states — California, Florids, Michigan, Arizona, Nevada, etc. — won’t be able to sign off on the settlement lest they be run out of town ona rail.
• We are much more interested in what the charts say than what bank management has to say. Think back to this time in March 2008 — how many banks were warning shareholders of a coming apocalypse?
Video posted here