Financial rebound

After free-falling for more than 6 months, has the financial sector stocks finally bottomed? Well, YES.

The financial sector crises, consisting of subprime mess and other credit problems, has driven down the sector more than 30% since last December. Now with all the surprises out of teh way, it looks like the sector is looking to rebound in the second half of the year.

There will be more bad news, yes, but not surprises. As the impact from Fed rate cuts start reflecting, and companies take measures to remedy the losses, this sector is headed for a rebound.

The world's largest financial group, Citigroup, is considering selling its Japanese consumer finance company CFJ KK or cutting the unit's business significantly as part of its plans to shed assets, Japanese daily Nikkei reported on Sunday. This is another bold move to cut the losses, and rebuilding for the future.

The biggest U.S. bank is aiming to unload $400 billion of assets within three years after being hit hard by flagging mortgage and credit markets.