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First 100 Days: Wall Street’s Tidal Wave Of Change

As Barack Obama marks 100 days in office, few things have dominated the headlines like his agenda to fix America’s banks. Hopefully you can swim because we’re looking at a tidal wave of change.

TOXIC ASSETS

At the epicenter of the banking crisis are toxic assets clogging the balance sheets of major American banks. Obama’s Treasury Secretary, Timothy Geithner in February unveiled a plan to soak up that bad debt in a public-private partnership.

INCREASED FINANCIAL REGULATION

Obama has implemented sweeping changes in an effort to more closely regulate Wall Street. That ranges from limiting executive compensation for banks needing TARP money to creating a new system so no bank is “too big to fail”.

STRESS TESTS

Perhaps Obama’s most controversial move has been the introduction of stress tests -- to determine which banks are healthy, which need more help and which might fail if the recession worsens. Critics say some banks must fail or the test will seem phony.

Although there are a wide range of opinions on all these initiatives, it seems everyone can agree on one point. Going forward Wall Street will never be the same.

So what’s the trade?

I’d look at the companies that are building up when others are paring down, says Guy Adami. For example, I like Jeffries although right now I think the stock is ahead of itself.

I’d get long the XLF and short the RKH , counsels Tim Seymour

As far as I’m concerned the strong banks are Wells Fargo , JPMorgan , Goldman Sachs and Morgan Stanley , says Pete Najarian. If Wells falls considerably on recent downgrades it could be an opportunity.

Read More:

The First 100 Days: Energy


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Trader disclosure: On Apr. 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (AXP), (RIG), (UNH), (TBT); Finerman's Firm Owns (BAC) Preferred; Finerman's Firm Owns (C) Preferred; Finerman's Firm Owns(MSFT) & (MSFT) Put Spread; Finerman’s Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Najarian Owns (BX) Call Spread; Najarian Owns (BP); Najarian Owns (DNDN) Call Spread; Najarian Owns (INTC) Call Spread; Najarian Owns (MS); Najarian Owns (PALM); Najarian Owns (RHT) Calls; Najarian Owns (RIO) Calls; Najarian Owns (XHB) Cal Spread; Najarian Owns (XLB) Call Spread; Najarian Owns (ORCL) Call Spread; Seymour Owns ( AAPL), (BAC), (EEM), (FXI), (PBR); Seymour Is Short (X)


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SPDR FIN SEL
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