Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (44989)	9/19/2008 2:47:58 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70831

'Huge Game Changer': What Happens to Wall Street Banks Now Posted Sep 19, 2008 11:57am EDT by Aaron Task in Investing, Recession, Banking Related: C, MER, BAC, WB, MS, XLF, WM Coordinated government intervention, featuring a temporary ban on short selling, plus a government plan to buy banks' distressed debt and insurer money market funds had the desired effect on financial stocks Friday. Citigroup, Washington Mutual, Bank of America were each recently up more than 18% in heavy trading, pacing a more-than 10% rise in the Financial Spyder (XLF). (On the down -- and dark -- side of the government's action, trading in Short Financials ProShares (SEF) and UltraShort Financials ProShares (SKF) was suspended, at least temporarily.) But do soaring bank stocks change the calculus for managers of companies that either just completed mergers or are on the verge of doing deals. In other words: Will Merrill Lynch try to get out of its agreement with Bank of America? Does Morgan Stanley proceed with its talks with Wachovia (and others)? Does Washington Mutual still need a buyer? Does Lehman's Dick Fuld have a right to be bitter this government action didn't come a week sooner? In the accompanying video, Henry and I discuss these and related questions with Tom Brown of Bankstocks.com and Second Curve Capital. One thing we all agree on: Assuming he can dump Merrill's bad assets on the U.S. government, Bank of America's Ken Lewis is looking a lot smarter now for doing the deal than just a few days ago.