Banks--- Betting on the recovery Message Board

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Non-Tech : Banks--- Betting on the recovery

WFC 86.27

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3:59 PM EST

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To: Road Walker who wrote (677)	3/8/2010 4:40:20 PM
From: tejek	of 1428

Some more Cramer comments re. the banks: Little Banks Don't Get a Fair Shake By Jim Cramer RealMoney Columnist 3/8/2010 2:58 PM EST These heartland banks are leading the charge higher for the bank groups, and they are doing it quietly and methodically. I looked at the group today because Fifth Third (FITB - commentary - Trade Now) was downgraded by an important firm, FBR Capital Markets, and yet it failed to go down at the opening. That's real strength. But there is strength across the board in this group. Regions Financial (RF - commentary - Trade Now) of Alabama and Huntington Bancshares (HBAN - commentary - Trade Now) of Ohio keep creeping higher, although always with little bounds of profit-taking like today. I think HBAN is adequately capitalized for growth. I would love to see Regions raise more capital so they can get more aggressive if the FDIC lets them buy up some banks. Key's (KEY - commentary - Trade Now) slower going but it too is pushing higher. FirstMerit's (FMER - commentary - Trade Now) been steadily strong -- just an excellent Akron-based bank that never got in trouble. But the two that most impress are PNC (PNC - commentary - Trade Now) and Comerica. PNC's been locked in a disappointing range since its equity offering, but it has now definitively broken out of the range. Comerica's just been a monster, up 188% year over year, as the Dallas bank has made a major comeback. We keep hearing about the coming collapse in small community banks and the problems the FDIC is going to have in placing loans and offloading heartland community banks. The press loves to make a fuss of this issue because it is sexy and no one can get his arms around how big the problem is. Excuse me for being skeptical, but I would like to point out that all of these healthier banks could be naturals to help out with the problem -- when we see these smaller banks go under every weekend, you almost never see these banks get a stake in them. Why? As always, everything the FDIC does remain a mystery, as if it is some sort of private organization that answers to no one. Strange, but it is a tribute to the excellent press relations that Sheila Bair has courted. She's golden. So the policy stays unscrutinized.

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