Damnable big banks a buy

|By:, SA News Editor

The Too Big To Fail banks are the new Philip Morris - "The most sued, regulated, politicized, and damned company in the last 50 years," value investor Bill Smead tells CNBC. Philip Morris (now Altria) also happens to be the best-performing stock on the NYSE during that time frame, he adds.

"Their sins are all six to eight years old," says Smead of Bank of America (BAC +0.2%), his fund's 4th largest holding. "The good things are all out in their future. Basically, as a value investor that's all you are looking for in this world."

Smead sees normalized earnings hitting $2.50 per share over the next four to five years, and a $30 stock price.