More Videos
- FTSE, DAX, CAC Seen Lower, Greek Deal Delayed
- The Secret Lives of Traders—Seeking the Next Hot Thing
- FBI Investigated Steve Jobs Drug Use
- China January Trade Surplus Soars as Imports Crumble
- Strip Greenspan of His Knighthood: SocGen Strategist
- Markets Finally Get Greek Deal —So Where's the Rally?
- Get All the Latest Out of Europe Here
- Warren Buffett: Stocks Will Outperform Gold and Bonds
- New iPad Next Month? Apple Nears $500
- New York Fashion Week Hits the Runway as Colors Pop
- Mulling Buffett's Stock Advice? Get in With REITs: Fund Managers
- LinkedIn Earnings Bode Well for Hiring and Social Media
- Top Five Mistakes to Avoid in Online Dating
- Victor Cruz ‘Understands’ Gisele's Super Bowl Frustrations
- Tamminen: The United States of India
- Unusual Volume: Taleo Jumps After Oracle's $1.9 Billion Offer
- Warren Buffett: Stocks Will Outperform Gold and Bonds .. and They're Safer 'By Far'
- So Now You Can’t Give Microsoft Away?
MOST SHARED
- Tesla Unveils First SUV: Model X
- China January Trade Surplus Soars as Imports Crumble
- Sony's Hirai to Extend PlayStation Strategy, Cut Costs
- China City Raises Cash Subsidies for Home Buyers
- India's Tata Steel Posts First Quarterly Loss in 2 Years
- Lightning Round: Yahoo!, CEC Entertainment, Standard Pacific and More
- Jobs You Can Do Forever
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- Alibaba Group Plans to Take Hong Kong Unit Private: Report
- How to Date a Wall Street Man
MOST POPULAR
HOT ON FACEBOOK
Bove’s Top Banking Picks
Text Size 
Richard Bove, financial strategist at Rochdale Securities, is bullish on the US banking sector as he sees an improvement in banks' overall operating businesses.
Bove has a "buy" rating on JPMorgan Chase [JPM
Loading...
()
], Wells Fargo [WFC
Loading...
()
] and Goldman Sachs [GS
Loading...
()
]. Neither he nor his company have holdings in any of the companies' stocks.
"If the equity market continues to rise, you'll see big increases in equity offerings," he said Tuesday.
When asked why his outlook differed from more bearish peers like Mike Mayo and Meredith Whitney, Bove told CNBC that there are a number of factors that contributed to his bullishness.
"What I see is operating earnings as being relatively strong … I don't think the loan losses are going to pull the operating earnings down as far as Mike (Mayo) and (Meredith) Whitney do," he said.
Bove said he sees a huge increase in deposits occurring in the American banking system.
"The cost of the money coming into banks is less than one half of what it was a year ago. So not only are they getting these deposits, but they're getting them at extraordinarily low rates," Bove told CNBC.
Other factors that add to Bove's optimism on banks are the recent mortgage refinance boom and that the securities complex is unlikely to cause more big writedowns like it did a year earlier.
"Your costs are coming under control because of the contraction that occurred in their businesses over the past couple of quarters," he added.
Bove said there are lots of reasons why Goldman Sachs had "pretty good numbers for quite a while," which include:
1. "Their core business, which is trading, did extraordinarily well;"
2. "The competition has gone away;"
3. "Goldman has pricing power – Basically because there's so few competitors, or weaker competitors, Goldman has actually doubled the price of transactions in the first quarter;"
4. "There was more activity in the currency markets, the commodity markets, the fixed income markets, and at the end of the quarter, just in the month of March, you started to see some improvement in their equity operations."
- Many have called to abolish the Federal Reserve. But what would happen if it was dissolved for good?
- Entrepreneurs have increasingly been buying back their companies over the last three years.
- Where are the best city locations for singles to take the online dating plunge?
- A Steelers fan spent a week with wide receiver Antonio Brown- and it was all due to tweeting.
- Here’s a look at the woman behind the newest collectible toy that kids love.
- Grab a brew—or not—and click ahead to experience the world’s most highly rated beers.
Data is a real-time snapshot *Data is delayed at least 15 minutes
