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CNBC News Associate
Bank failures are a necessary thing for the industry, said Collyn Gilbert, managing director and senior bank analyst at Stifel Nicolaus.
“We shouldn’t be scared about investing in banks,” Gilbert told CNBC.
“Either if it it’s going to come through failures or some sort of forced consolidation, the object is to reduce the number of 8,500 banks we have in the industry.” (Read below for her stock picks.)
Gilbert said the reduction will be positive in the long-term for shareholders, bank customers and the banking industry.
“Look at the banks that have a favorable competitive position, that they have enough capital to weather through this and that they’ve been in a position where they can more or less quantify what the potential credit loss is going to be,” she said.
Financials — Second Opinions:
- Dick Bove: Failures Could Tap 25% of Healthy Banks' Earnings
- I'm 'Very Bullish' on Financials: Portfolio Manager
Gilbert said she is in favor of resolving the bank situation, even if it means a temporary infusion of capital.
“Ultimately, what it comes down to is who is going to run the company, what’s the capability of the management and the board of the company,” she said.
Gilbert Likes:
People’s United Financial [PBCT
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First Niagara [FNFG
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M&T Bank [MTB
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Valley National [VLY
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CNBC Slideshows:
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Disclosures:
Gilbert has investment banking clients who own shares of FNFG, PBCT and VLY. Gilbert does not own shares of MTB.
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Data is a real-time snapshot *Data is delayed at least 15 minutes