Most regionals are still in big trouble. The regional bank index is outperforming the mega bank index which leaves me to surmise that either the mega banks are way past dead or the regionals are just containing their misery better for now. Surmise no more it is both. Banks havn't even begun to scratch the surface yet on their losses. Consider Fifth Third which has run up 658% off its deserved low of $1.01. They took the maximum in Tarp, they raised some capital from sale of the only good asset on their books(card processor) and they diluted themselves as others with an offering. Their footprint consists of Michigan, Ohio, Indiana, Illinois, and Florida (i could stop right here)and has a real unemployment rate(u6) in excess of 20%(stress test was 8.5%). Some digging finds they were big into auto dealership floorplanning and reserved only 94 million on a portfolio that exceeded 2 billion. Call me crazy but they need to reserve 500 million on that one alone. And that may not be enough. Florida foreclosures for the regionals are taking eighteen months on average from first notice to available to sell and they haven't even begun to get their arms around it yet. I don't need to dig further so I'll just buy some puts...thanks for the nice green shoot run up.