Citing what appears to be evidence giant American banks are losing money in the first quarter, Seeking Alpha believes it's time to short the too-big-to-fails like BofA (NYSE:BAC), Citigroup (NYSE:C), JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC), along with ETFs Financial Select Sector SPDR (XLF) and Regional Bank Holders (RKH).
They noted the banks are accumulating cash at rates in their Fed accounts not seen since the middle of the financial crisis in 2008.
The suggestion is to unload long positions and build up short positions in banks mentioned above, and other large financial institutions.
Bank of America was trading at $13.43, up $0.09, or 0.64 percent, as of 2:34PM EDT. Citigroup was at $4.43, down $0.03, or 0.78 percent. JPMorgan was at $46.22, up $0.36, or 0.78 percent. Wells Fargo was trading at $31.73, falling $0.21, or 0.66 percent. Financial Select Sector SPDR was at $16.33, down $0.01, or 0.03 percent, and Regional Bank Holders was trading at $86.60, down $0.02, or 0.02 percent.
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