- Fed's Tarullo Backs Surcharges to Limit Bank Size
- Look Ahead: 'Risk On' Sentiment Could Fuel Rally Further
- European Commission Objects to Sun Micro-Oracle Deal
- Obama Sees Strains Unless US, China Balance Growth
- JPMorgan Lifts Salary Freeze Amid Recovery
- Can Apple Top Microsoft as Most Valuable Tech Firm?
- Do You Know Your Coca-Cola Myths?
- Buffett to Sell Stakes in Norfolk Southern, Union Pacific
- Cramer: 5 Stocks to Play the Next Bull Run
- Why Google is Paying $750 Million for Ad Mob
- Warren Buffett to Sell Stakes In Union Pacific & Norfolk Southern
- Nov. 9: Unusual Volume Leaders
- The Battered Businesses Behind Housing
- Modern Warfare 2's Record-Breaking Launch
- Merck’s Mega-Monday Morning
- Why are Traders Bullish on This Food Company?
- Profiting From Natural Gas: Strategists
- S&P Stocks Trading at New 52-Week Highs
MOST SHARED
- Obama Sees Strains Unless US, China Balance Growth
- Future of Marketing
- European Commission Objects to Sun Micro-Oracle Deal
- Priceline Crushes Profit Forecasts; Shares Jump
- Oil Tomorrow
- Mad Mail: Buy the Berkshire Hathaway Split?
- Can Apple Top Microsoft as Most Valuable Tech Firm?
- Nov. 9: Unusual Volume Leaders
- Cramer: 5 Stocks to Play the Next Bull Run
Text Size 
If you're going to risk investing in financials, invest in the ones that are assured to survive the credit fallout.
Your best bets -- Bank of America and JP Morgan Chase, a strategist told CNBC's Asia Squawk Box Friday.
"These two firms recently have acquired some weaker competitors, but even after these acquisitions, their balance sheets are in pretty decent shape", said Paul Larson, an Equities Strategist at Morningstar. (Watch the complete Paul Larson interview on braving the financial sector.)
To be seen as well capitalized in the eyes of regulators, you have to stay above 6 percent. Both banks are well above that number.
"If you look at their balance sheets ... at their tier one ratios, Bank of America [BAC
Loading...
()
] is just under 8 percent and JP slightly above ... that's telling you they're well capitalized," Larson said.
"In the most recent quarter, JPMorgan [JPM
Loading...
()
] actually expanded their loan book. Everyone else here in the U.S. is contracting ... (but) JPMorgan has the money to go out and make more loans and I think that's telling of their financial strength in this time of weakness," Larson said.
Larson adds that Lehman Brothers [LEH
Loading...
()
] is a bank that he's not looking at, even after Ladenburg Thalmann's Richard Bove raised his rating on Lehman overnight to 'Buy'.
Print
Email
- Do free market libertarians really believe what they say about ethics and shareholder value? The Big Money takes a look.
- Cramer did the research and found eight stocks that lead the pack. Read on to get his top picks.
- On the anniversary of the fall of the Berlin Wall, many in the former Eastern Bloc recall communism fondly.
- Software, biotech firms, even banks are watching a particular Supreme Court argument today.
- From politicians to CEOs to companies, here's your chance to vote for the winners and losers of 2009.
- A new sinister Internet viruses can turn you into an unsuspecting collector of child pornography.
Data is a real-time snapshot *Data is delayed at least 15 minutes