Fitch has it wrong, U.S. banks could actually wind up benefitting from Europe's debt crisis,...

Fitch has it wrong, U.S. banks could actually wind up benefitting from Europe's debt crisis, says Rochdale's Dick Bove, He cites two reasons: First, U.S. banks have a relatively low level of exposure to European banks. Second, the problems facing European banks could actually drive business to seek healthier institutions in the U.S. His top picks: PNC Financial (PNC) and Fifth Third Bancorp (FITB). Both get hit when Europe erupts, but neither are heavily exposed to European banks.

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Comments (17)
  • screamin187
    , contributor
    Comments (294) | Send Message
    Keep on towing that line right into this recession Dick, you will make a name for yourself and it will be worse than you current one, Dick.
    17 Nov 2011, 06:54 PM Reply Like
  • connorj21
    , contributor
    Comments (24) | Send Message
    US Banks have low level of exposure to European banks? You crazy Dick.
    17 Nov 2011, 06:55 PM Reply Like
  • lowemoran
    , contributor
    Comments (130) | Send Message
    Who? Dick Bove? Ah, i remember him.The perma clown that said in August of 2008 Lehman Brothers was cheap. The same clown who said Bank Of America was cheap at $12....well it got cheaper.....the same guy who said GS at $140 was cheap......


    Here is Dick Bove the clown upgrading Lehman Brothers shares just one month before bankruptcy.....

    17 Nov 2011, 06:58 PM Reply Like
  • TeresaE
    , contributor
    Comments (3041) | Send Message
    Yep, somebody may be left that might actually, eventually, "benefit" from it.


    But trillions in CDS's doesn't leave me warm and fuzzy about the status of the banks now controlling, what, 70% of our entire banking system?


    Good luck with that Bove, good luck.
    17 Nov 2011, 07:10 PM Reply Like
  • bajjiblow
    , contributor
    Comments (57) | Send Message
    Oh yeah , believe him and lose all your money
    17 Nov 2011, 07:16 PM Reply Like
  • bob adamson
    , contributor
    Comments (4560) | Send Message
    Dick Bove does not give due regard to the interconnectedness of the big US investment banks with their counterparts in Europe; an interconnectedness that is intrinsic to modern finance capitalism. Not only would substantial damage to major European banks and countries credit standing hit these US banks through depreciation of their European debt holding, the losses incurred by the shadow bank affiliates of the US banks insofar as those shadow banks were active relative to European activities and holding, loss of business conducted for European clients, partners and affiliates and the general downturn of the global economy triggered by contraction of the European economy but, further and very importantly, a global credit crunch analogous to but deeper than that occurring buy late 2008 and continuing into early 2009 would attend the problems in the global banking industry. Further, while in 2008/9 the governments and central banks of the leading advanced economies were prepared to assume significant portions of the bad debts of their private banks (and otherwise substantially help refinance those banks), there are significant reasons to believe that these central banks and governments would now be much less willing and able to hepl in that way.


    I short, while there might be some tendency for Europeans to seek a safe haven in US banks as Dick Bove suggests, that would be overwhelmed into insignificance by the unease and deflationary trends I've tried to describe.
    17 Nov 2011, 07:29 PM Reply Like
  • jschroe36
    , contributor
    Comments (66) | Send Message
    In all honesty, someone needs to put a gag order on this Bove jackass.
    17 Nov 2011, 07:32 PM Reply Like
  • David Urban
    , contributor
    Comments (1031) | Send Message
    If that were true why are Citi's and BAC's stock prices going into the tank?


    Of course there is the case of what lies off-balance sheet.
    17 Nov 2011, 07:45 PM Reply Like
  • Ted Bear
    , contributor
    Comments (709) | Send Message
    All it takes is 1% of the US Banking Derivative exposure to blow up, and every cent of US bank capital is vaporized in less time than you can say 'Bove.'


    IF Europe takes the gas pipe, which seems extremely likely, the "Major" US banks will melt away like spring snow. It will, however, finally cleanse the system and allow for major economic rebuilding on a solid base instead of trying to build on the current foundation of mush.
    17 Nov 2011, 07:47 PM Reply Like
  • Ambil Kembali
    , contributor
    Comments (121) | Send Message
    International trade in ores, wood,nuts, art, tech, fabric, honey, tobacco, autos, and Florida Oranges (and etc) must all be purely barter. No need for banking and interconnection.


    17 Nov 2011, 08:27 PM Reply Like
  • wolverine27
    , contributor
    Comments (421) | Send Message
    lets not forget that amazing call on mf global just a few weeks back . he recommended the stock and said everyone was wrong ...a few days later mf is gone .
    how bove has a job is amazing .


    he also take the cake for most pompous guest ever.
    17 Nov 2011, 08:32 PM Reply Like
  • inquisitivemind7
    , contributor
    Comments (205) | Send Message
    I want a puff from his pipe!
    17 Nov 2011, 09:16 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
    Dick Bove: Banking Sector Shill Extraordinaire!


    He really should get business cards with that printed up.
    18 Nov 2011, 05:40 AM Reply Like
  • jschroe36
    , contributor
    Comments (66) | Send Message

    18 Nov 2011, 12:49 PM Reply Like
  • wolverine27
    , contributor
    Comments (421) | Send Message
    the loser trotted onto cnbc for the 5th time in 2 weeks .


    he loves banks ...which means short at will and get rich.
    18 Nov 2011, 02:18 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4747) | Send Message
    Regional banks may not have that much exposure, but if BAC has 14 billion in bonds from the PIIGs, then so do all the rest.
    20 Nov 2011, 05:08 AM Reply Like
  • wolverine27
    , contributor
    Comments (421) | Send Message
    bove....strikes again . loved the banks and thus the meltdown in banks.
    bove is a tool of epic proportions.
    21 Nov 2011, 02:19 PM Reply Like
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