[credit provider=”Son of Groucho via Flickr” url=”http://www.flickr.com/photos/sonofgroucho/4607241206/”]
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.