Bancorp (USB), which has one-eighth as much in assets. Bank of America shares fell as much as 10.9 percent to an 11-1/2-year low.

Investor worries swelled after Credit Suisse analysts said two big, new commercial loans were near default. That fanned fears that credit deterioration that has already saturated the residential mortgage market and worsened in credit cards was heading to a major new area, commercial real estate.

Citigroup on Wednesday also said it agreed to buy $17.4 billion of assets remaining in a series of funds known as structured investment vehicles. Such vehicles were among the earlier major classes of investments to implode in the global credit crunch that began last year. On Monday, Citigroup announced 52,000 job cuts.

As for the market we remain on the edge of abyss - holding this 830-835 range. A close below and I believe we trigger the next leg down. I think everyone else knows this too so "they" will try to defend it at all costs as "they" already have. We now have the very rare (ok never really heard of one) quintuple bottom staring at us. A cynic would say "they" will find a way to make another fake rally late in the day; not that I'm cynical ;) ... but I'm going to take about 25% of short exposure off here assuming we get some fake rally. If we break down and close below S&P 830, I'll buy it back around 3:59 PM.

Lonh Ultrashort Financials in fund and personal account