This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Is Cyprus the Subprime of the Euro Crisis?

According to the FDIC Quarterly Banking Profile for the 2012 fourth quarter, there are $7.1 trillion in insured deposits in the U.S. banking system versus a total of $9.4 trillion in total domestic deposits. It the U.S. Treasury decided to seize 40% of the $2.3 trillion excess they would raise $920 billion. My advice, make sure you have less than $250,000 in any one bank, just in case.

I see the 'Cyprus solution' putting concrete in the can that keeps getting kicked down the road. Even a minor run on the banks could make a can full of concrete impossible to kick.

I still worry about exposures to notional amounts of derivatives, which ended 2012 at $224.1 trillion down 2.3% sequentially as shown in the FDIC Quarterly Banking Profile. Exposure to derivatives is up 34.9% since the end of 2007.

Is there a 'London Whale' lurking off the coast of Cyprus?

We will soon observe how Cypriots react to this bailout in the streets of Nicosia. If you take c-y-p off the word, you'll see what that spells!


On March 11, I wrote, Downgrading Two of Four 'Too Big to Fail' Banks and I bet that these huge money center banks have tentacles in the Cypriot banking system. Today only Citigroup (C) remains buy-rated, with the other three rated hold.

Bank of America (BAC - Get Report) ($12.56): Has a hold rating and traded to a multi-year high of $12.94 on March 19. The stock has a fair value at $13.12 and one-year price target at $12.85, which indicates limited upside. My semiannual value level is $9.01 with monthly and weekly pivots at $11.54 and $12.39 and annual risky level at $17.07.

Citigroup (C - Get Report) ($45.23): Has a buy rating and traded to a multi-year high of $47.92 on March 11. The stock has a fair value at $65.17 and one-year price target at $48.25. My annual value level is $33.19 with monthly and weekly pivots at $45.30 and $45.72 and quarterly risky level at $56.11.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $16.76 0.18%
C $55.20 0.66%
JPM $66.65 0.00%
WFC $56.17 0.29%
AAPL $132.69 0.99%

Markets

DOW 18,261.15 -24.59 -0.13%
S&P 500 2,130.33 -0.49 -0.02%
NASDAQ 5,098.0580 +7.2640 0.14%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs