Traders take note. According to John Najarian from CNBC Fast Money, financial stocks could skyrocket 100% “within hours” if mark-to-market accounting rules are relaxed at a House financial services subcommittee hearing. Najarian is not one to make such statements likely, so it is worth reading the exact quote:

“if the government relaxes mark-to-market for 12 to 18 months you could
see financials move 100% in a matter of hours.” And he went on to say, “In
fact, I hope you’ll replay the soundbite because if the government relaxes
mark-to-market accounting a number of banks stocks will be unbelievable
values at these levels.”

Here is the CNBC Fast Money clip on the subject, including a call on which financial stock would most benefit. For his money, Najarian suggests a higher risk play - long the Financial Bull 3x ETF FAS (take a look at the 6-month chart).

Hat-tip to Howard Lindzon of Stock Twits

Regards,
George