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Right now, the big nine as I call them are in protected status and may see more upside because they are protected against total failure by the govt. the financials are a pick but not for the faint hearted.  There will be some volatility as people take money off the table but it won't be by the shorts.

Citi Eyes Wachovia as $700B Bailout Plan Nears Completion

CNBC is reporting that merger talks between Citigroup (C) and Wachovia (WB) have advanced, with a meeting scheduled today for Citi executives. The major deciding factor is the status of $120B in bad debts for Wachovia, with Citi looking for help from the Fed as part of the bailout plan to sell the troubled assets. Wachovia has $400B in deposits, making it the sixth largest bank in the U.S. by assets with a strong presence in the East and Southeast regions.

Meanwhile, a tentative agreement

• Prudential Financial (NYSE: PRU) to sell Wachovia (NYSE: WB) securities stake to Wells Fargo (NYSE: WFC)
• Capital One Financial Corporation (NYSE: COF) and Chevy Chase Bank today announced a definitive agreement under which Capital One will acquire Chevy Chase in a cash and stock transaction valued at approximately $520 million.The purchase will add $11 billion in deposits to Capital One.Under the agreement, Capital One will purchase Chevy Chase for $445 million in cash and 2.56 million Capital One shares, valued at $75 million, based on the closing price of Capital One stock as of December

Filed under: Rants and raves, Money and Finance Today, Wachovia Corp (WB), Wells Fargo (WFC), Chasing Value, Stocks to Buy, Best Stocks for 2008

Filed under: Citigroup Inc. (C), Bank of America (BAC), Wachovia Corp (WB)

It's been almost a year since December 12, 2007, when Vikram Pandit took over as CEO of Citigroup (NYSE: C). His performance has been outstanding -- and not in a good way. During the last four quarters, Citi lost $20 billion. Sure Pandit has plans to fire 52,000 people and he's raised at least $45 billion from the U.S., along with guarantees on $277 billion worth of Citi's bad assets. But he botched the acquisition of Wachovia (NYSE: WB). And Citi stock has fallen 81% wiping out $138 billion in stock market value.

By c

Filed under: Citigroup Inc. (C), Amer Intl Group (AIG)

The weekend is often the time when boards and the government decide the fates of companies and CEOs. It gives everyone involved at least two days, perhaps more, to weigh options and make decisions without the fury of stock market trading. A board of directors can start work on Friday at 4 PM and weigh options until 8 PM Sunday, when Asia opens, or 8 AM Monday if overseas trading is not an issue.

No one with any sense would believe that the board of Citigroup (NYSE: C), the FDIC, the Fed, and the Treasury are not working through this weeke

Filed under: Citigroup Inc. (C), JPMorgan Chase (JPM), Wachovia Corp (WB), Options, Wells Fargo (WFC)

Citigroup (NYSE: C) is recently trading at $5.59 in pre-open trading, above its close of $4.71 Thursday. C November 5 straddle is priced at $1.18, December is at $2.83. C March option implied volatility of 187 is above its 26-week average of 67 according to Track Data, suggesting larger price movement.

JP Morgan Chase (NYSE: JPM) is recently trading at $25 in pre open trading, above its close of $23.38 Thursday. JPM December option implied volatility of 140 is above its 26-week average of 61