Tags: Tilson | bullish | bank | stocks

Whitney Tilson Bullish on US Bank Stocks

By    |   Tuesday, 13 Dec 2011 08:02 AM

While Europe’s financial crisis has made bank stocks there a poor investment choice, it’s a much different picture in the United States, says Whitney Tilson, founder of money management firm T2 Partners.

European banks are extremely overleveraged given the continent’s debt woes, Tilson tells Steve Forbes, chairman of Forbes Media.

Meanwhile, “We think the U.S. financial sector sort of went through its valley of death and has dramatically stronger balance sheets today, much lower levels of leverage,” Tilson says.
________________________________________________________

ALERT: Wall Street Whistleblower Warns of Meltdown — See His Uncensored Interview.

________________________________________________________

Deutsche Bank’s assets to tangible equity are levered about 49 to one, compared to 13 for JPMorgan Chase and Goldman Sachs, Tilson says.

“You wouldn’t touch the European financials with a 10 foot pole, no matter how cheap they looked,” he says. But T2 has stakes in Goldman, Citigroup, JPMorgan and Wells Fargo, Tilson says.

“We have to have a macro view that the world isn’t going to blow up, and that they’re not going to go through a similar near-death experience and require a bailout,” he says.

“So there is some tail risk on those, but we think it’s quite small. Whereas we think it’s a very large tail risk for European financials.”

Rochdale Securities analyst Dick Bove is another market luminary who is bullish on U.S. bank stocks. For now they are being held back by fear, despite improving fundamentals, he writes in a recent report obtained by CNBC.

But he thinks fundamentals will win out. “This is my view.”

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
While Europe s financial crisis has made bank stocks there a poor investment choice, it s a much different picture in the United States, says Whitney Tilson, founder of money management firm T2 Partners. European banks are extremely overleveraged given the continent s debt...
Tilson,bullish,bank,stocks
1679
2011-02-13
Tuesday, 13 Dec 2011 08:02 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved