Saturday, August 13, 2011

Something's Going On With US Bank Stocks... (GS, MS, XLF)


Morgan Stanley

Something interesting to notice...

While equity markets in Europe and the US are enjoying a fairly strong day, the US banking sector looks pretty bad.

US investment banks -- Goldman Sachs and Morgan Stanley in particular -- are badly underperforming, with the latter off around 3.5%.

Something you have to wonder is if they're getting sucked lower by the short-selling ban on banks in Europe. After all, if you can't short a European bank, you have to find a proxy. CDS are one proxy. Possible American counterparties are another.

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Source: http://feedproxy.google.com/~r/TheMoneyGame/~3/vulqzA_qYlk/goldman-sachs-morgan-stanley-lower-european-short-selling-ban-2011-8

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