yeah, I didn't get that either. I would think that there are competitions among the banks. If one fails, the competitors look better by default. YOu are right, now more investors are abandoning JPM and jumping onto other banks, not neccearilly all citi.
Just because one bank does horribly at investment doesn't mean every bank across the board will. This is the same logic used by the analyeasts to handle trillions of 401k dollars; any wonder my 401k is now worth less than the principals.