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TALE OF TWO BANKS: CITI VS. BofA
Call it a tale of two banks; Citigroup topped the tape after being added to Goldman's "Conviction Buy" Here’s what they had to say:
“We believe C’s exposure to private label put-backs should be significantly lower than peers. ...C’s consumer mortgage business issued $25 billion and its Securities and Banking business issued only $70 billion, a very small amount relative to other market leaders.
What's the trade?
I’d bought Citi on Monday, says Joe Terranova. If Citi can get above $4.30 I think the momentum returns.
Meanwhile, rival Bank of America closed lower – unable to climb out of the mortgage "put back pit."
What’s the bank trade?
Things just get worse and worse for BofA, however I think the rhetoric will turn at some point, says Karen Finerman. But I wouldn’t buy this stock right now.
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Trader disclosure: On Oct. 25, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (F), (NOK); Finerman owns (AAPL); Finerman & Finerman’s Firm owns (BAC); Finerman owns (GOOG); Finerman & Finerman’s Firm owns (JPM); Finerman’s Firm owns (HPQ); Finerman’s Firm owns (MSFT); Finerman’s Firm owns (SKS); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Terranova owns (APA), (AAPL), (AXP), (C), (GOOG), (GS), (IBM), (ISRG), (MCD), (MDT), (MMM), (NKE), (ORCL), (OXY), (PEP), (PFE), (PCP), (UPL), (VRTS), (XBI); Weiss owns (QCOM), (AKAM), (VZ), (TXN), (COP), (NIHD)
For Gary Kaminsky
***No Disclosures***
For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLF)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Virtus Investment Partners own more than 1% of (DRYS)
For Peter Schiff
***No Disclosures***
For Chris Raymond
Robert W. Baird & Co. makes a market in (AMGN)
Robert W. Baird & Co. intend to seek investment banking compensation from (AMGN) within the next 3 months
For David Sackler
Moab Capital Partners Owns (RGS), (RGR)
For Bill O'Donnell
***No Disclosures***
For Mike Khouw
Cantor Fitzgerald makes a market in (EXPE)
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