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Banks Are 'Very Cheap' in Wake of Reform

Friday, 25 Jun 2010 | 12:14 PM ET

Lawmakers reached a deal on financial reformon Friday. What does the bill mean for the banks going forward? Anton Schutz, president of Mendon Capital Advisors, and Paul Miller, group head of financial services at FBR Capital Markets, discussed their insights.

FinReg Effect on Financials
Discussing the financial legislation's potential impact on the financial sector, with Paul Miller, FBR Capital Markets and Anton Schutz, Mendon Capital Advisors.

"In the short term, there is not a lot of impact at all," Schutz told CNBC.

"But in the longer term, some companies are going to reshape themselves somewhat."

However, earnings are not going to be dramatically affected and some of the banks stocks are "very cheap," he said.

“At the end of the day, Congress accomplished nothing to remove risk from the system," he continued. "This bill was a big political football.”

In the meantime, Miller said JPMorgan , Morgan Stanley and Goldman Sachs shares are “very inexpensive.”

“I think we can all live with this and continue to think that stocks will continue to bounce as people get a better understanding of this,” he said.

Miller also favors PNC Financial , Bank of America and USBancorp .

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Scorecard—What They Said:

  • Miller's Previous Appearance on CNBC (May 21, 2010)
  • Schutz's Previous Appearance on CNBC (Apr. 19, 2010)

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Market Views—Bullish & Bearish:

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

No immediate information was available for Miller or Schutz.

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Disclaimer

  Price   Change %Change
BAC
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GS
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JPM MLP ETN
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MS
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PNC
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USB
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