Rafferty Capital bank analyst Dick Bove spoke with FOX Business Network’s (FBN) Melissa Francis about the government’s role in breaking up the big banks. Dick Bove said, the government wants “Too Big to Fail banks to go away” and that “over the next six to twelve months you are going to see lawsuits coming out from just about every part of the government.” Dick Bove went on to say, that “in the short run you are looking at dead money in bank stocks.”
Excerpts from the report are below.
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Dick Bove On whether the government is trying to break up the big banks:
“We went through a whole bunch of quotes today. We got quotes from the President, Chairman of the Fed – a whole bunch of board members at the Fed. We got quotes from Senators, we got quotes from people at the FDIC, the Attorney General’s office and they all said the same thing. They all said we want Too Big to Fail banks to go away. We want to break up some of these banks. We’re going to sue these banks, and in fact, I think over the next six to twelve months you are going to see lawsuits coming out from just about every part of the government after some bank somewhere, and to think that’s not going to hurt those companies or those stocks – I think would be a mistake. I think these stocks will definitely be hurt by it. So I think in the short run you are looking at dead money in bank stocks.”