Citi Corp (C)

Okay, here is the latest from Citi Corp. "Prince said the company was unlikely to make any large U.S. bank acquisitions in 2007, reiterating that there were better opportunities to buy businesses overseas."

What does that mean, it means you can expect an announcement pretty soon that they are acquiring another bank. In play would be Key Corp, Wachovia and U.S. Bancorp.

U.S. Bancorp

U.S. Bancorp (USB) announced today that there were no "transformational' deals" anytime soon. Of course that means something big is up. Your best bet is either Bank of America (BAC) is looking at U.S. Bancorp, or U.S. Bancorp is looking at Wachovia (WB) or Key Bank. Actually, I would put money on Wachovia (WB), and wait for BAC to say something, then buy BAC on the dip (which I have been trying to do for a while now.)