Finerman: JPMorgan and Bank of America Good to Own

The financials were among the worst performing sectors of the quarter.

In fact, on Thursday Bank of America closed at the same level where it started the year. For practical purposes the stock has now given back all its first quarter gains.

Yet Karen Finerman is constructive on the financials including Bank of America.

"Financials already reflect a lot of bad things," she says, "things like the mortgage putback issue, the Durbin amendment and whatever the Volcker rules are going to be."

In other words she thinks it's all baked in the cake.

And on top of that, she thinks as the economy improves banks will benefit. "We’ll see increasing loan books, a very high margin part of their business." In turn Finerman expects to see improved earnings.

"At current valuations JPMorgan and Bank of America look fine to own," she says. "It really comes down to valuations for me."

Tim Seymour largely agrees with Finerman. "I don't see the downside here," he says. "Investors got lost in noise but these guys have survived their death scare."

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Trader disclosure: On March 31, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karabell Owns (AAPL); Karabell Owns (GS); Karabell Owns (MON); Karabell Owns (POT); Karabell Owns (RIMM); Finerman's Firm owns (AAPL); Finerman's Firm owns (FDO); Finerman's firm owns (JPM); Finerman's firm is long (JPM) Leaps; Finerman's firm and Finerman owns (MSFT); Finerman's Firm owns (IWM); Finerman Firm owns (SPY); Finerman's Firm owns (MDY); Finerman's Firm owns (XRT); Finerman's firm is long russell 2000 puts; Finerman's firm is long s&p 500 puts; Terranova owns ( C); Terranova owns (GS); Terranova owns (VRTS); Terranova owns (JPM); Terranova owns (UPL); Terranova owns (MS); Terranova owns (PBR); Terranova owns (BAX); Terranova owns (TEVA); Terranova owns (IBM); Terranova owns (XOM); Terranova owns (JNPR); Terranova owns (AKAM); Terranova owns (DIS); Terranova owns (CVI); Terranova owns (RSX); Terranova owns (CNQ); Terranova is long (AAPL) April 350 puts

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