Sticking with that theme, Pete Najarian thinks if the feds allow a major bank to fail it's going to be Citigroup. "The options action has been extreme and the stock itself traded under $5."
As you can imagine Dylan Ratigan finds it outrageous that taxpayers are once again, coming to the rescue. "Ultimately I think it’s the government’s fault for allowing bank CEO’s to get into this kind of mess," he says.
David Konrad, head of large cap bank research at Keef, Bruyette & Woods, also takes issue with the way the TARP money is used. He says, "the government uses the TARP to receive preferred stock. The market is holding common stock and it’s subordinate." As far as Konrad is concerned that's a major flaw and why the cash infustions aren't really helping the market in general.
And leave it to Jeff Macke to add some humor to the situation. "It’s Alexander Hamilton’s fault, he bristles. "We should exhume him and shoot him again. No one is too big to fail. I wish they would just let the bad banks die and let the chips fall where they may."
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Trader disclosure: On Jan. 14th, 2008, 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 (TM), (DIS), (MSFT), (SDS), (AAPL); Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), NUE); Seymour Owns (BAC), (EEM), (F), (TSO), (AAPL); Najarian Owns (HSBC), (MSFT), (MS), (CSCO), (XME); Najarian Owns (DNA) Calls, (NVLS) Calls, (NVDA) Calls; Najarian Owns (C) Puts; Najarian Owns (CSCO) Short Calls; Najarian Owns (MS) Short Calls
For David Konrad:
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