The Major Banks are liquidating all their positions to stay solvent, and it is not working. Their liabilities are huge. They have more toxic mortgages than they know what to do with, they were blown out shorting silver and gold, and they have little performing assets. This is why their prop desks are selling everything the got. They are trying their hardest to stay solvent, and it is not working.
The best evidence today to show that the Major Banks are liquidating their assets is that even though oil went through the roof, the Oil Majors had no gain. This was because the largest share holders, the Major Banks, sold their shares. Selling performing assets means either the seller thinks there is a correction coming, or that liquidity is needed. The Major Banks are long oil, so much in fact that they were the ones who bough the SPR release. The only explanation for them selling Major Oil equity is that they need liquidity.
Since the Discount Window borrowings had gone berserk it was obvious that the Major Banks were in trouble. Through in the way their equity is trending and nobody will argue. Yet now we see them selling their performing assets: something big is around the corner- the Major Banks are going to fail.