- 10 Dividend Picks For Your Portfolio: Chief Investors
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Retail Earnings and Sales to Improve in Q4: Analyst
- 4 Food Stocks to Stuff in Your Portfolio: Analyst
- S&P at 1050-1200 Trading Range Next Year: Strategist
- Art Cashin: Caution 'Growing' in Financials, Dividend Moves
- 3 Software Stock Picks from Lazard's Senior Analyst
- Investors Bet on a New Year's Rally For eBay
- Why You Should Play the Reflation Trade: Stock Picker
MOST SHARED
- The Executive Job Search
- Chinese Overcapacity is Worsening, EU Chamber Warns
- US Mint to Suspend American Eagle Gold 1-Ounce Coins
- Judge Erases Couple's $525,000 Mortgage Payment
- Salvation Army's Kettles Now Credit Card-Ready
- Topless Business Is Taking Off
- Wal-Mart Price Pressure Hurts China Workers: Report
- Black Friday: Bargain or Bust?
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- Dubai Debt Delay Rattles Stock, Bond Markets
- Fannie Mae to Tighten Lending Standards: Report
- China Overcapacity Worsening, EU Chamber Warns
- Investing in Good Karma – and Making a Profit
- Black Friday to Avoid Red Ink; Greenback Gets the Blues
- Wal-Mart Price Pressure Hurts China Workers: Report
- Bankruptcies Jump, Hitting Highest Level in Four Years
- Steepest Black Friday Discounts, Revealed
- Where Do Pardoned Turkeys Go?
RSS FEED
CNBC Stock Blog
Text Size 
A number of U.S. banks stand to gain after the government takeover of Fannie Mae and Freddie Mac, as the move, coupled with the Treasury decision to buy mortgage-backed securities, brought much-needed liquidity back into the market, Dick Bove, analyst at Ladenburg Thalman & Co., told CNBC.
"We like Bank of America [BAC
Loading...
()
], we like Citigroup [C
Loading...
()
], I like Wells Fargo [WFC
Loading...
()
], I like BB&T [BBT
Loading...
()
], PNC [PNC
Loading...
()
], US Bancorp [USB
Loading...
()
], there's a number of bank stocks that I like simply because these companies have the potential to show sharp earnings advances over the next couple of years," Bove said.
Analysts have said the government bailout will deal a blow to banks because they will lose on the preferred shares they hold in Fannie Mae [FNM
Loading...
()
] and Freddie Mac [FRE
Loading...
()
], but Bove said this will be a one-time hit.
"Once that one-time hit is over, you have to start looking beyond that," he said, adding that the banks listed above had good long-term earnings possibilities.
"Wells Fargo has no competition on the West Coast. Wells is sitting in a vacuum and is making a great deal of money because its competitors have gone away. That's why you buy Wells Fargo," Bove said.
The Fannie and Freddie bailout unlocked the liquidity in the market and that is why mortgage rates fell on Monday. But they are likely to rise again if the two government-sponsored enterprises are forced to reduce their portfolio, he said.
"This is no benefit to housing whatsoever," Bove said. "If they start shrinking, they'll take money (out of the housing sector) not put it in."
____________________________
New from CNBC.com:
- Dow 30 At a Glance
- A Tidal Wave of ARM Resets Ahead?
- ____________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes