Dec
30

Banks Better Off Than People Think, Argues Analyst Bove

By
Ladenburg analyst says rescue schemes working; mortgage refinancing ‘beginning a new boom’

– Financial Week

The U.S. banking sector may be considerably stronger than what conventional wisdom suggests. Moreover, the decline in bank stock prices has been excessive as many of these stocks represent “excellent” values, according to veteran banking analyst Richard Bove.

U.S. government programs will work and the negative assumptions concerning the weakening of the economy may be excessive, the Ladenburg Thalmann analyst said in a report that reviewed the banking industry based on data from the Federal Deposit Insurance Corp for the third quarter of 2008.

“To this point investors in bank stocks have paid little attention to the new programs believing them to be inadequate to reverse the economic decline underway. Therefore, bank stocks are falling to levels not experienced since the late 1980s and early 1990s,” Mr. Bove said.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:

http://www.financialweek.com/apps/pbcs.dll/article?AID=/20081229/REG/812299993/1036
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