Write-Down And Back Up Again
As subprime securities find a price, banks could discover they lost less than they thought. Which bank will be the first to say they overstated their subprime writedown?
I think Merrill appears most likely to overstate writedowns, says Karen Finerman. But not right now. Maybe the quarter after this.
I agree, says Guy Adami. Merrill has a huge wealth management business which essentially makes it a baby boomer play.
The dirty secret is no-one really know how much to writedown, counters Jeff Macke. Even Citigroupcould overestimate their writedowns because they were so huge!
I like Goldmanbest in the space, adds Pete Najaran.
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Trader disclosure: On Feb.26, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian Owns (BIIB), (NOK), (C), (CSCO), (MCD), (MS), (MSFT), (XLF), (XTO) Calls, (YHOO) and (YHOO) Calls; Macke Owns (INTC), (KSS), (MSFT), (ODP), (TSO), (WMT), (DIS), (YHOO); Finerman’s Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), Finerman’s Firm Owns (DVA),(AAPL), Finerman’s Firm and Finerman Own (FLS), (HD), Finerman’s Firm Is Short (LEH) and Owns (LEH) Puts
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