If low rates continue to get lower, which banks are better positioned to survive and thrive? Craig Siegenthaler, analyst at Credit Suisse, and Paul Miller, group head of financial services at FBR Capital Markets, discussed their insights.
Regional banks "are in a little bit of trouble here,” Siegenthaler told CNBC.
“With low rates, it lowers your asset yields—that’s a big negative—it reduces your deposit cost."
Of the regional banks, Siegenthaler said KeyCorp is one that is well-positioned and will hold better than most others.
In the meantime, Miller said he prefers banks such as PNC Financial are in a “sweet spot” to take advantage of acquisitions.
“The only way you’re going to put assets on banks is through acquisitions and both are prepared to do that.”
Scorecard—What They Said:
- Miller's Previous Appearance on CNBC (Sept. 10, 2010)
- Siegenthaler's Previous Appearance on CNBC (Jun. 21, 2010)
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- Bank Fundamentals Are Improving—Buy These: Analyst
- Jon Najarian: One Financial to Watch
CNBC Data Pages:
Neither Miller nor Siegenthaler own shares of KEY.