Okay, the BLS report came in. U3 is 10.2%, U6 is 17.5%. The Household Survey said we lost 558,000 jobs, not 190,000. The household survey has been more reliable during this recession. We have now exceeded the most negative and adverse scenarios in the bank stress test.

What does this have to do with Sterling? Simple. The higher unemployment numbers correlate with loan losses. Unless SBIB had a crystal ball and estimated the employment situation better than the economists, their loan loss provisions are likely to go up again.

Regional bank index is down 1.4%. SBIB isn't.... yet.