Citigroup said it had an exclusivity agreement with Wachovia to prevent them from finding other possible buyers.
Considering the Street is littered with broken promises, what does it mean going forward?
Ladenburg Thalman analyst Dick Bove tells us if he were building a portfolio right now he'd take a huge position in Citigroup. And "I would buy PNC, BB&T, and Bank of American," he says on Fast Money.
As you can guess he’s somewhat bullish on financials. In fact Bove thinks the headlines should read banks are bouncing bank.
"Keep in mind that Wells Fargo, JP Morgan, BB&T, USB , Bank of America , and PNC Financial are all up 75% from their lows,” he says.
You want to know why? “Most of the information being pushed out about banks not making loans is simply dead wrong.”
"It’s baloney that banks won’t lend to each other. When the LIBOR rate is 2% they’re lending. There is so much misinformation about this industry it boggles the mind.”
By misinformation he means that too many financial services firms are being called banks, when by strict definition they're really not.
“You’ve got to separate the commercial banking sector from the non-banks. You’ve had thrifts go down, investment banks go down and mortagage companies go down, but a major commercial bank has not gone down," Bove tells the traders. "These companies are not in the trouble that the Secretary of the Treasury claims they are… the magnitude is being overstated in a huge fashion.”
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Trader disclosure: On Oct. 3, 2008, 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); Karabell Owns (AAPL), (AGU), (BHP), (GOOG), (JPM), (MS), (RIMM); Seymour Owns (AAPL), (INTC), (MER); Terranova Owns (AAPL), (EOG), (FCX), (FTO), (GS), (MA), (NOV), (POT), (X), (VLO)
Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (CNW)
, (OFC), (DLM), (DRH), (DLR), (EPR), (EXR), (FL), (SLB), (LNET), (MAC), (DBC), (DBV), (SKT), (UA), (BLV), (VV), (CLB), (GWX), (IGE), (FSMXX); Virtus Investment Partners Owns More Than 1% Of Shares Of Incitec Pivot Ltd.; Virtus Investment Partners Owns Seagate Tax Refund Rights; Virtus Investment Partners Owns Seagate Technology Tax Refund Rights; Virtus Investment Partners Owns More Than 1% Of Shares Of Essex Property Trust Inc.
Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)
Gartman Owns (CME), (KBE), (SDS)
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