Photo: Son of Groucho via Flickr
Something interesting to notice…While equity markets in Europe and the US are enjoying a fairly strong day, the US banking sector looks pretty bad.
US investment banks — Goldman Sachs and Morgan Stanley in particular — are badly underperforming, with the latter off around 3.5%.
Something you have to wonder is if they’re getting sucked lower by the short-selling ban on banks in Europe. After all, if you can’t short a European bank, you have to find a proxy. CDS are one proxy. Possible American counterparties are another.