Hawken also said that the Fed the is going to remain reluctant to give some banks permission to return capital to shareholders.
"The trouble is (banks) have got to kiss the ring of the Fed in order to get permission to return capital to shareholders," and this favors the banks the regulators believe in and whose internal controls they trust, namely Goldman Sachs and JPMorgan, Hawken said.
It will be "slow going at first" for others, including Citigroup, Morgan Stanley and Bank of America.
However, of his "neutral" ratings, Hawken is most positively disposed to Citigroup, citing the new leadership after Vikram Pandit's sudden departure in October.
"Instead of empire builders, lawyers and hedge fund mangers, now we've finally got a bank operator" running Citigroup, he said, referring to CEO Michael Corbat and Chairman Michael O'Neill.
The trouble with Citigroup stock, however, Hawken said is that after it's run up, it's no longer trading at as much of a discount as it used to.