The Congressional agreement on a financial reform bill reached early Friday is good for banks but bad for consumers, says Richard Bove, banking analyst at Rochdale Securities.
"I would be buying bank stocks," Bove told CNBC. "The bill is now behind us."
In addition, President Barack Obama will stop bashing banks, Bove says. Indeed, the president’s words will turn from negative to positive, the star analyst says.
"This is a populist surge of activity to say 'Hey, we'll get these bad guys on Wall Street that did bad things to you,'" Bove said.
As for the banks, they’ll find a way around restrictions, such as the new rule to prohibit proprietary trading, he says.
And they will raise fees where they can to make up for revenue lost from the new rules. "The people who get hurt are everybody else," Bove said.
Be prepared to pay maintenance fees on your savings and checking accounts – perhaps $12 to $15, he says.
"The point is that the banks can get this money back, the consumer can't."
Others agreed with Bove that banks won’t suffer much from the new legislation.
They “dodged a bullet,” Raj Date, executive director for Cambridge Winter’s bank policy center, told Bloomberg. “This has to be a net positive.”
Dean Baker, co-director of the Center for Economic and Policy Research, told Bloomberg the new rules are “largely a fig leaf.”
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