Your Neighborhood Bank Trade

Now that the Federal Reserve has lowered the cost of borrowing, will regional banks such as U.S. Bancorp (USB) and PNC Bank (PNC) report an earningsboost thanks to the steeper yield curve?

Here’s the regional earnings calendar breakdown.

Mon. 10/ 15 - Wells Fargo (WFC) & US Bancorp (USB)
Tue. 10/16 - Sovereign Bank (SOV) & Washington Mutual (WM)
Wed. 10/17 - PNC Bank (PNC)
Thr. 10/18 - Fifth Third Bancorp (FITB)

A few weeks ago strategic investor Dennis Gartman told the traders he was bullish on the regional banks and liked the KBW Regional Banking (KRE) .

Karen Finerman doesn’t agree with Gartman. Although most of the credit crisis is probably over, she says, the risk reward just isn’t there.

Guy Adami likes some of the regional banks and says buy USB going into earnings. He expects the stock to trade around $36.

Here's a related trade (it's in banking). On Friday, Pete Najarian says he bought the $47.50 Citigroup (C) put and sold the $50 call. He also owns the stock.

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Trader disclosure: On Oct 12, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (ATVI), (INTC), (JWN), (EMC); Najarian Owns (BEAS), (C), (EMC), (GOOG), (UA); Finerman Owns (C), (GS); Finerman's Firm Owns (COP), (CTX), (GE), (KSS), (LTD), (MSFT), (NVT), (TGT), (WMT), (DAI), (KFT), Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (BEAS); GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC