andrewh10

Citigroup's Flush

I meant Travelers Group in the above comment. For the record I am not a Whitney fan, I just think the articles reasoning for a long term position is rather dubious. Anyone looking at the fundamentals would likely agree. Heck even JPM said C was the short play of the year in 2008, a bold prediction several months ago which turned out to be very accurate. However, if you look at the data the short position in C has dramatically declined thus you have the recent short covering rally. The point being why buy an under performing injured bank with plenty of luggage in a relatively good environment for the industry considering Fed policy and the yield curve when you can own something better with proven management. My gut tells me rates will not stay this low for long and the banks will face some stronger headwinds in the near future.