Tags: Bove | Europe | us | banks

Bove: European Crisis Actually Helping US Banks

Wednesday, 16 Nov 2011 08:20 AM

Rochdale Securities banking analyst Dick Bove says the European crisis is actually helping U.S. banks.

“The irony of what’s going on right now is that the banks are benefiting at the moment from what’s going on in Europe,” Bove told CNBC.

“The European banks are selling American assets to American banks at discounted prices which is creating a benefit for the American banks.”

According to Bove, U.S. banks are flush with cash and may even be overcapitalized.
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“If you take all the numbers going back 75 years to when the FDIC was first created,” says Bove. “We’ve never had this high a level of capital plus reserves as a percentage of assets in the banking industry, ever.”

Dick-Bove-3-thumb-200.jpg
Dick Bove
(Rochdale file photo)
Add to this the fact that nervous investors are selling investments and holding cash, and the U.S. banking picture looks rosy, indeed.

“The banks have too much liquidity right now, too much capital right now,” Bove says. “There is no funding issue.”

Among those banks Bove especially likes are JP Morgan Chase, U.S. Bancorp and Morgan Stanley.

Moneycontrol.com reports that Warren Buffett says it's not clear Europe has the will or ability to do "whatever it takes" to resolve its debt crisis.

Buffett also says that berkshire Hathaway does not own stocks in eurozone banks and hasn`t yet seen any opportunities to buy.





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Rochdale Securities banking analyst Dick Bove says the European crisis is actually helping U.S. banks. The irony of what s going on right now is that the banks are benefiting at the moment from what s going on in Europe, Bove told CNBC. The European banks are selling...
Bove,Europe,us,banks
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2011-20-16
Wednesday, 16 Nov 2011 08:20 AM
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