“It is difficult to tell whether these investigations and potential settlements may prove to be a positive or a negative for the leading mortgage securitizers still in business. The authorities may, in fact, end up limiting the investment banks’ liabilities to a fraction of the potential investor losses the banks could be on the hook for in court proceedings,” Miller Tabak analysts said in a note.
“Still, at the moment, we think the ‘headline risk’ for investment banks remains high,” they added.
SPDR KBW Bank ETF (NYSEArca: KBE) was up 0.6% on Tuesday. Some options traders are positioning for a bounce in beaten-down ETFs tracking banks and financial stocks. [ETF Options Traders Look for Rebound in Citigroup, Big Banks]
SPDR KBW Bank ETF
