Oppenheimer Won’t Lay Off Bad News On Banks (C)(BAC)

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Oppenheimer now puts out a negative report on banks stocks every other day, like clock work.

Today’s reports says that money center financial firms "may write off more than $170 billion of additional reserves by the end of 2009," according to Bloomberg.

If that is the case, several banks stocks which have recovered over 50% from their lows, are overvalued.

Assuming that Oppenheimer is right, and it has been before, banks could retest their lows from earlier this year. That means that Citigroup (C) could move back toward $18 and Bank of America back to $33.

Douglas A. McIntyre