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Large U.S. banks’ stocks in capitulation mode: Merrill (Reuters)

A woman is reflected in a puddle as she passes a Bank of America branch in New York's Times Square January 11, 2008. (Brendan McDermid/Reuters)Reuters - U.S. large-cap regional banks' stocks now appear to be in "capitulation mode" and will likely trade below fair value in the near term as more dividend cuts and capital raises, high credit risk and an uncertain earnings outlook all weigh on their share prices, an analyst at Merrill Lynch said.