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Karen Finerman: These 4 Banks Belong on Your Radar

Bank stocks have been among the worst performers this month -- and for that matter this year.

And on Tuesday, again the sector was hard pressed to win any love from the Street. RBC initiated coverage of both Morgan Stanley and Goldman Sachs with an ‘Underperfrom’ rating saying they would be the most affected by the proposed Dodd-Frank Act.

The new regulations could hurt as much as a fifth of Goldman's pre-tax profit, says RBC.

As you may remember, in May, veteran bank analyst Richard Bove cut Goldman to "sell" on fears the bank faces a barrage of litigation, and said Goldman was "not a good investment."

Of course, the entire sector is facing increased scrutiny, greater capital requirements and a recovery that appears to be slowing if not stalling out.

Fully aware of all these headwinds, Karen Finerman says 4 bank stocks belong on your radar:

Bank of America

Finerman thinks the Street has it wrong and when jitters subside BofA will be among the big winners.

“When you have a franchise like BofA trading at 82% of tangible book, people think things are really wrong. But there’s a lot of good things there. There’s a lot of valuable assets. However I own leaps to limit my risk,” she admits.

Goldman Sachs

Although she’s aware of all the concerns and the potential lawsuits facing this company, when the dust settles she thinks Goldman will be none the worse for wear.

”Goldman Sachs trading at 98% of book value. We haven’t seen that in a very long time,” she says.

JPMorgan

If you watch Fast Money regularly you know this is one of Finerman’s favorite stocks largely because she’s impressed by its management team led by CEO Jamie Dimon.

Although it’s more expensive that the others mentioned above – “JPMorgan is trading around 125% of book value,” she says, it’s still worth a look.

FoxChase

Finerman likes this stock because she sees two catalysts that she think will propel shares.

”They’re going to be reweighted in the Russell and the company has been prevented from doing a buyback by regulatory authorities. That is, prevented from buybacks until the end of this month,” she says.







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Trader disclosure: On June 14, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Long S&P 500 Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (FXCB); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT)l Adami Owns (NUE); Adami Owns (BTU); Terranova Owns (VRTS); Terranova Owns (IBM); Terranova Owns (FCX); Terranova Owns (CVI); Terranova Owns (F); Terranova Owns (AAPL); Terranova Owns (CAT); Terranova Owns (BX); Terranova Owns (HPQ); Terranova Owns (MA); Terranova Owns (PEP); Terranova Owns (MCD); Terranova Owns (TM); Terranova Owns (DAR); Terranova Owns (BJ); Terranova Owns (XOM); Terranova Is Short (DELL); Weiss Owns (QCOM); Weiss Owns (SWC); Weiss Owns (JPM); Weiss Owns (EMC); Weiss Owns (ETP); Weiss Owns (NS); Weiss Owns (DVN); Weiss Owns (COP); Weiss Owns (HK); Weiss Owns (TWM); Weiss Owns (MRK); Weiss Owns (HAIN); Weiss Owns (TEVA); Weiss Owns (UUP); Weiss Owns (MSFT); Weiss Owns (CMA); Weiss Owns (GLW); Weiss Owns (PZN); Weiss Is Short (FWLT); Weiss Is Short (FLR); Weiss Is Short (SHAW)

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