Tick, Tick, Tick

Remember kids, it's not just huge banks like Citi and BoA that are insolvent. They're big enough politically to be saved. A lot of large regional banks however are done for.

A Bernstein Research analyst on Friday called Fifth Third Bancorp "un-investable," and noted that the regional bank will likely need more capital.

Shares of the Cincinnati-based bank recently traded down 21 cents, or 10 percent, to $1.99.

In a note to clients, senior analyst Kevin St. Pierre said more details are needed on how the government plans to administer its "stress test" on banks with assets over $100 billion. This will determine not only if Fifth Third needs more capital, which he believes it does, but will also provide more insight on how much its shares could be diluted from further government investment.

As part of the government's overhaul of the $700 billion financial bailout package passed last fall, the Treasury Department has proposed a "stress test" for the nation's largest banks to determine whether they can make loans on their own or need further government aid.

"Upon release of the details of the test and the minimum capital levels desired by the government, we will be better equipped to evaluate the viability of Fifth Third and the potential dilution involved with further injection of capital by the government," St. Pierre wrote. Until then, the bank is "un-investable," he said.

There are a solid dozen banks out there like Fifth Third across the country. They're not going to survive, most of them. Plan N might save them if implemented now. When Obama's hand is forced however, he's going to have to draw a line.

All the banks below that line are dead. Save what you can. Abandon what you can't. Banks like this will be chopped up and sold...or more likely, will just disappear as Americans realize they don't need all these banks anymore.