[brewer12345]

Regional banks tend to be portfolio lenders rather than lend and sell the loan guys, although many do some of both. If you are a portfoio lender (classic example: AF), you make the loan with the intention of holding it until it pays off, and you generally have financing lined up to make a spread (deposits and some borrowings, usually). If you stick to higher quality loans, you are in a steady, but unexciting business that usually results in a stable, high stock price. The banks that fit this picture have been trashed by the market along with the guys who lend & sell the loan, and wit the guys who make risky/junky loans. So its a clear buying opportunity for the guys who keep their noses clean, and many of the lend & sale and risky loan guys are attractive at current prices, too.

The CDO market is currently closed, more or less. But unless "this time its different", the window will re-open in a while and people who depend on that market will get on with business, assuming they don't blow up while the window is shut.