Aug 23. European bank shares slammed

Light volume Monday.  The spotlight continues to be on shares in the financial sector, and on gold.  In August alone, Dec Gold has rallied from just above $1600 to nearly $1900, gaining $40 yesterday alone.  Perhaps the move is partially due to Venezuela’s Chavez trying to repatriate physical gold, but certainly growing cracks in the financial world are a factor.  Prime example yesterday was Goldman losing 5% of value in the last 30 minutes of trading as Reuters broke a story about CEO  Blankfein engaging legal counsel outside of the firm, with speculation that he will have to defend himself against (perjury?) charges stemming from last year’s appearance before Congress.  Was Geithner’s public consideration about possible resignation connected with an attack on his (former) employer?  But of course, it’s not just GS stock that’s under selling pressure.  This list isn’t all inclusive, but since May 31, here are financial stocks that have dropped in value:  RBS 54%.  More than 40%: BAC, BCS, CS, BNP.  More than 30%:  C, MS, UBS, DB.  Goldman actually looks pretty good, only having lost 24%, similar to JPM, USB, WFC, and HSBC.  But these are significant losses of capital….

Posted on August 25, 2011 at 10:54 am by alexmanzara · Permalink
In: Eurodollar Options

Leave a Reply