XLF back to pre-Lehman level

|By:, SA News Editor

Led by a big move in the TBTFs, the Financial Sector SPDR (XLF +0.6%) hits its highest level since September 2008, though it remains far below the mid-2007 peak.

Has the easy money been made? Drexel Hamilton's David Hilder notes Bank of America (BAC +1.5%), Citigroup (C +1.8%), and Morgan Stanley (MS +1.2%) all traded well below tangible book value one year ago, and Raymond James' Anthony Polini thinks the 10-year Treasury yield will have to move above 3% and stay there before you'll begin seeing earnings estimates ratcheted up.

Bank of America hit its highest level in nearly 3 year today and JPMorgan (JPM +1.7%) - for all of its legal troubles - is only about 2% below prices not seen since 2000.

The relatively clean Wells Fargo (WFC +0.3%) is the group laggard this session.

Financial sector ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, SEF, IAT, IAI, IYG, FXO, PFI, KBWB, RKH, QABA, KCE, RWW, FINU, RYF, KRU, KBWR, PSCF, KRS, FINZ, FNCL, KBWC