Widely followed banking analyst Dick Bove said he doesn't understand why investors were dumping banking stocks Friday.
"Buying bank stocks at this moment makes a great deal of sense," the Rafferty Capital Markets analyst wrote in a report, as bank stocks around the world plummeted on uncertainty stemming from the vote in favor of Britain leaving the European Union. "There is no basis for arguing that there will be a financial collapse in this country," he added, referring to the U.S.
Bove said that despite the "shocker" decision in the U.K. to quit the EU, some of the threats to the country's banking system will be contained to Britain and won't reach U.S. shores. Bank shares slumped, with the MSCI Europe Financials Index falling more than 15 percent in Friday trading and the KBW Nasdaq Bank Index down 6 percent by early afternoon.
Further, he takes issue with the idea that big banks will have only two years to pack up and ship out of the U.K.