Big Bank Insider Buying: Desperately Bullish?

[Post Summary]

The eye is not satisfied with seeing,
—Ecclesiastes

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So, what do you make of Bank of America's Ken Lewis (as well as five directors) buying up shares in the beleaguered bank they manage (NYSE:BAC)?

Curiously, J.P. Morgan Chase's Jamie Dimon also went to his company's equity trough and picked up a cool half million shares for himself (NYSE: JPM).

Is this competition meant to attract outside equity capital? An act of financial warfare pitting two highly leveraged giants? A concerted denial of any need for being nationalized?

This latter possibility (bank nationalization) appears to be a growing likelihood. However, I am mildly skeptical this action is imminent. But, then again, what do I know?

Funny, though, this insider buying is being reported on the first day of the Obama administration. Are we really to believe both firms' CEOs find compelling opportunity in their banks' shares ... this coincidentally on the very same day ... amidst much media fanfare?

Technically speaking, as best as I can tell both stocks present a relatively low-risk trade opportunity on the long side. Yet seeing how fast counter-trend rallies in financials these past couple years have unfolded, you could blink and miss your chance.

So, should the actions of these two insiders be casually passed off as "foolish" behavior? It seems the question is whether Mr. Lewis and Mr. Dimon genuinely are bullish or just desperately maintaining appearances.

Given all that has passed, does one need be a dyed-in-the-wool cynic to suspect the latter?

—Tom Chechatka