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Cyprus Shows ‘Cracks in the Floor’: Godfrey

The banking crisis in Cyprus has revealed issues that still need to be resolved for investors, Gemma Godfrey of Brooks Macdonald Asset Management said Wednesday on CNBC.

"Cyrpus has revealed cracks in the floor," she said. "We're still seeing, obviously, a lot of market exuberance, but it is a bit of a game-changer."

On "Fast Money," Godfrey added that European Central Bank President Mario Draghi's comments about its bond-buying program last fall has provided some level of support for the market here.

"But Cyprus, although small in itself, has highlighted that there are some key issues that still have yet to be addressed," she said.

Specfically, Godfrey said that investors are looking for their deposits guarantees for their deposits, banks need liquidity and weaning off EU funding, which was being undermined in the current climate, and for banking unions to break the link between banks and sovereigns.

"I think it's crucial for where investors are specifically putting their money, and it's going to become more and more of a stock-picker's market. We've already started to see correlations fall," she said.

"What the whole Cyprus highlights is weaker banks are going to suffer from higher funding costs, and banks that have capital adequacy and good capital positions are going to deserve a premium."

Godfrey said that investors didn't need to focus on whether the market has topped.

"You can put that to one side and actually say that within the sector, especially within banking, there is going to be greater divergence between the stronger and the weaker," she said.

Trader disclosure: On March 20, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Enis Taner is long GS; Enis Taner is long SODA CALL FLY; Enis Taner is long FDX PUT FLY; Enis Taner is long HD PUT SPREAD; Enis Taner is long FXE PUTS; Mike Murphy is long AAPL; Mike Murphy is long BAC; Mike Murphy is long IR; Mike Murphy is long JCP; Mike Murphy is long TOL; (as of Friday 3/14) Jon Najarian is long JPM CALLS; Jon Najarian is long MGM CALLS; Jon Najarian is long FIG CALLS ; Jon Najarian is long KKR CALLS; Jon Najarian is long XLF CALLS; Jon Najarian is long STX CALLS; Jon Najarian is long WLL CALLS; (as of Monday 3/18) Pete Najarian is long AAPL ; Pete Najarian is long BAC CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long YHOO; Pete Najarian is long BBRY; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long COP CALLS; Pete Najarian is long MRO CALLS; Pete Najarian is long ABX CALLS; Pete Najarian is long CZR CALLS; Pete Najarian is long QQQ CALLS; Pete Najarian is long MTG CALLS; Pete Najarian is long EMC CALLS; Pete Najarian is long CROX.

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