And Cassidy thinks we'll soon learn the problems are in commercial real estate. In an investor note published a few days back Cassidy wrote, "we are nowhere near the end of this down leg.”
And on Fast Money he told the traders, “you want to stay away from (banks with exposure to) the commercial real estate market. I think we’re just starting to get into that.”
What’s the trade?
On Fast Money he suggests the trade is short commercial real estate while getting long the capital markets names. And he also says you can get long the real estate market in Southern California. "That market is starting to come back."
What do you think? Tell us now.
After the testimony CNBC’s Erin Burnett had a chance to catch up with JP Morgan CEO Jamie Dimon. When asked about the Q&A he told her “no one is saying mistakes weren’t made but we’re going to fix them.”
Then, when asked about new Treasury provisions to save off foreclosures he told her that JP Morgan has been in the forefront of mortgage modifications. And he'd like to see a national standard.
Also, when asked how long Tim Geithner has to come up with specifics for the bailout plan Dimon said, “I’d rather they (take time) and get it right.”
While talking about the day's hearings, Dylan Ratigan muses that from what he heard maybe the banks don’t need any more money.
Joe Terranova feels that the government is almost becoming an enabler, a reference to the way some people unknowingly enable an alcoholic.
Tim Seymour finds the whole CEO testimony a waste of valuable time.
Pete Najarian remarks that Citigroup CEO Vikrim Pandit doesn’t want to get rid of so-called toxic assets at rock bottom prices and that seems to make sense.
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Trader disclosure: On Feb. 11th, 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 (CAT) Call Spread, (ENER) Call Spread, (EEM) Call Spread, (GDX) Call Spread, (GLD) Call Spread, (STI) Call Spread, (MOS) Call Spread; Najarian Owns (CHK) Put Spread; Najarian Owns (FCX) & (FCX) Calls; Najarian Owns (GS) Calls; Najarian Owns (GE) Puts; Najarian Owns (MSFT) & (MSFT) Short Calls; Najarian Owns (MS) & (MS) Short Calls; Terranova Owns (DIS), (KCE), (XBI), (FXC); Terranova Owns (IBM) Call Spread; Terranova Owns (AMGN) Puts; Seymour Owns (MT), (BAC), (EEM), (FXI); Seymour's Firm Owns (VIP), (TKC); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE)
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