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Write-Down And Back Up Again

Tuesday, 26 Feb 2008 | 6:21 PM ET

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!

Tomorrow's Trades #3
Discussing whether or not actual losses will be less than feared once the subprime dust settles, with the Fast Money team.

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

Charles Schwab is a sponsor of Fast Money

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