Big jump on Geithner's plan, but are many banks really going to want to put toxic assets out there for auction while mark to market is in place? If the auction values assets valued at 60% closer to 40%, won't that force another round of markdowns & require more government capital, diluting common shares?
Maybe some of this reality was setting in today despite some positive numbers on housing starts & durable goods & today's late bounce was due to DOW holding 7500?
Could go either way from here, but I think I'm going to hold SKF at $105 now.
I think the reality of Geithner's plan + bank stress test results are likely to shake the financials hard again in the coming month or so at least a couple times.