Bank of America sold $19 billion of common equivalent securities in a move to repay money it received from the U.S. government's TARP. Is it time for investors to buy into the big banks?
Matt McCormick, banking analyst and portfolio manager of Bahl & Gaynor Investment Counsel, shared his views on BofA , rival banks and his stock picks.
“I’m positive on the [BofA] deal,” McCormick told CNBC.
“It sets the expectation that other banks like PNC, Well Fargo or Fifth Third may sharpen their pencils and look to get out of the TARP a tad bit sooner.”
McCormick said Citigroup is "behind the 8-ball" and added he would not buy its stocks because he sees a lot of risk. Additionally, McCormick said he is weary of other financials that are associated with the TARP as they have more risk associated with them.
"I look through some higher quality shares, ones that have the ability to at least have a dividend," he said. "I think there are other financials out there that I’d be more interested in than Citi.”
McCormick’s Picks:
Scotiabank
T. Rowe Price
Northern Trust
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Disclosures:
No immediate information was available for McCormick or his firm.
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