First, Washington Mutual (WM) is simply dead on arrival with this bias shift. It is still making bad mortgages, and by the way, the Credit Suisse report that was bullish on housing yesterday has some astoundingly bad numbers on the first quarter's defaults -- yes, already -- by those who are putting up limited funds to buy, and that's Washington Mutual's unfortunate sweet spot. The private-equity guys I think will be hard-pressed not to walk away from this one, although the authorization of more share issuance yesterday will string out the collapse.

I see little to no hope for National City (NCC) and Huntington Bancshares (HBAN), which need some way to build equity and have been saying that bad loans are peaking. There should be a new round of bad loans if the Fed changes the bias and rates don't come down.

I see little to no hope for National City (NCC) and Huntington Bancshares (HBAN), which need some way to build equity and have been saying that bad loans are peaking. There should be a new round of bad loans if the Fed changes the bias and rates don't come down.

Downey Savings (DSL) and BankUnited Financial (BKUNA) -- the latter actually trying to raise money despite its dollar stock price -- are without hope, I believe, given the growth in non-performers, something that cannot reverse itself with a change in bias.

Downey Savings (DSL) and BankUnited Financial (BKUNA) -- the latter actually trying to raise money despite its dollar stock price -- are without hope, I believe, given the growth in non-performers, something that cannot reverse itself with a change in bias.

More important, even the bullish reports on homebuilders from CSFB yesterday cite incredible weakness in those markets. (By the way I suspect that Hovnanian (HOV) gets killed with the change in bias, but that's a homebuilder, not a banker.)

Corus (CORS) should be another bank that will be hard to keep afloat with a change in bias.

have no idea how IndyMac (IMB) makes it, given its incredibly horrible Alt-A portfolio. I don't know anyone who wants to give these guys money in a change of bias. This is the company that criticized me on its call for saying that I was way too bearish and didn't calculate the walk-away potential of homes with little or no money down. Oops! Sorry, Michael Perry. I may have gotten that one right.