Dick Bove


Last quote by Dick Bove

In sum, these executive orders signal a willingness by the president to take some action on Dodd-Frank. In real terms, however, even if they result in some rule changes, the impact on the industry will be negligible.feedback
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Apr 25 2017 Dodd-Frank Act
Dick Bove has most recently been quoted in an article called Wall Street on Goldman whiff: 'What the heck is going on?'. Dick Bove said, “Given what you're seeing out of Bank of America, JPMorgan and Citigroup, this is a quarter which makes me wonder what the heck is going on. Hopefully, it's just an aberrant quarter.”. Dick Bove has been quoted a grand total of 60 times in 38 articles.
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Dick Bove quotes

When an industry group ignores facts and operates on unproven theory the risk of loss is great. This is where we are with bank stocks at present. We are reacting to unproven theory once again. Watch out.feedback

I don't believe it's going to be a whipsaw effect, where they will sell off today and recover tomorrow. I think it will take a few months for the prices to sell off. People will take another look at these companies and see they are still in pretty good shape, then people will start to buy again. In the near term, they're not going to make a lot of money out of them.feedback

The understanding is growing that all of the reasons that people had for buying bank stocks in November are dissipating, they're gone. If you're not going to get tax cuts, if you're not going to get fiscal stimulus, if day-to-day business is lousy right now, which it is ... if the recognition of all of these factors suddenly dawned on the investor, they do what they're doing right now – they pile out at the exits, they take their profits.feedback

If you think of the amount of funds flowing out of mutual funds, it's been in the hundreds of billions. That's one main source of revenue for the industry. The commission income to hedge funds – the 2 and 20 deals are not in existence in the hedge fund to the degree they were previously. You have huge pressures for commission income to Wall Street firms. One, the customers are really hurting and two, the market took off at the end of the year but the volumes were relatively low. If you take a look at investment banking, the big blockbuster deals that took place in 2105 were not there in 2016.feedback

The elimination of Daniel Tarullo as a force within the Fed and American banking is a very positive step toward real deregulation in core banking. It suggests that the banks will be able to operate more freely in the financial markets in obtaining funds and manufacturing products. This is a big, big plus.feedback

The opportunity to rein in the Fed will exist. More importantly, the Tarullo regulations can be eased. The ability of banks to acquire raw material and make loans based on free market considerations will be enhanced. The Fed's stranglehold on the banking industry and its ability to function freely will be eased.feedback

The biggest problem is they're going to have to change the functionality of the operating business in a fashion that lowers the profitability of the bank. There has been a fundamental change which will lower their secular earnings growth.feedback

They had created a level of efficiency in that system which was really remarkable. You made the basic, fundamental change in the way the company is going to do business. The result is to reduce business and increase the cost of new business. That's not a short-term event that goes away. That is a long-term existing problem.feedback

Bank stocks "are likely to move higher. The expectation is that 2017 results will be more positive growth, but this is highly dependent on the ability of the industry to grow its loan portfolio and control costs. It will not be due to changes in interest rates. If investors do not realize this, these stocks will be at risk.feedback

The net result is that the fourth-quarter figures for the industry are expected to be flat to down. This will be the source of the earnings increase expected in this period. Expense control will also be a significant factor in 2017's earnings performance.feedback

In general, fourth-quarter reports are expected to demonstrate limited revenue growth and strong expense control. Results could be moderately better but not in line with the stock price increases. This creates a potential risk.feedback

Mr. Trump wants to focus on rebuilding America's manufacturing capabilities. This is Mr. Allison's greatest strength. He has already done this. He made over 100 acquisitions. He created tens of thousands of jobs at BB&T and he loaned out tens of billions of dollars.feedback

Given the fact that there is general consensus everywhere else that the U.S. banks are well-capitalized with excess liquidity, they take market share.feedback

Any thought that this Act can be repealed is simply ludicrous. It cannot be done unless some sizable group of people want to spend a decade or more ferreting out every rule that was created by the act.feedback

There is a need for what big banks and Wall Street do for the economy. The new supposed leaders of the Trump administration appear to understand this. Therefore, it is highly likely that banking regulations will be meaningfully eased in the next year. I still think this cannot be done by revoking Dodd Frank. It must occur at the Fed.feedback

I think that Tarullo is gone. He has been perhaps the source of more regulation for the financial industry than anyone else in the history of the U.S. government. The Fed is going to get the message: We're looking for you to figure out ways to make banks more productive, to assist the economy.feedback

This is a grand slam home run for the industry.feedback

The Fed makes the decision of what the cost of money should be. It makes the decision of what the quantity of money should be.feedback

The banks have been forced to siphon staggering amounts of money in the coffers of the U.S. government, directly and through the Federal Reserve, as a result of all these regulations being thrown at them.feedback

You begin to understand that this is not a minor, small impact that they lost money by doing this. This is the core of the company. The core of the company has been adjusted after 20 years of doing business in a certain fashion, and they have to learn how to do business in a new fashion.feedback

They need to go outside the company. They need to steal somebody from JPMorgan. I don't think Tim Sloan is the right guy for the job.feedback

I don't think an insider is the right guy to do it. The culture needs to be adjusted. The fat has got to come out of this company. There's a whole lot of things that need to be done that Mr. Sloan is not going to do.feedback

Even though the fines are not meaningful the damage to the Wells business model is significant.feedback

The headline risk is going to be very negative for the stocks in the short run, but I think they are compelling buys.feedback

Large banks are going to be forced to take on more capital. This will lower returns on capital. It will make the cost of funding more, not less, expensive. It will reduce the appeal for investors to put money at risk in the banking system.feedback

JPMorgan Chase has been a proving ground for CEOs all over the country.feedback

They have to come up with a reason she did not perform her function.feedback

During these hearings it was published that Warren Buffett is placing one of his key lieutenants on the Board on JPMorgan even though his companies do not own stock in that bank. He is clearly walking away from Wells Fargo.feedback

What Wells has done is it's saying that it's treating customers badly, it broke faith with customers. There is no business in the world that can treat its customers badly and continue to expect to grow.feedback

Implicit in what he said is the retail sales number could be really good.feedback

All of them are seeing the consumer using their credit card to a greater degree and spending aggressively. Even in the GDP figures for the second quarter, even though GDP was up a minimal amount, consumer spending was up 4.2 percent.feedback

That's the issue that we have in looking at the economy. It's pretty simple to see the industrial economy is very troubled . New orders are down, ISM is bad. Capacity utilization is weak. Capital spending is lower than one would hope. All of the data is being picked up reasonably well. On the consumer side, we don't know whether the methodology in place are correctly picking up what the consumer is doing.feedback

Loan volume is what drives bank earnings, and volume will be up if there's no recession.feedback

The misrepresentation of the industry is really beyond belief.feedback

If we're talking the biggest banks, Clinton was the Democratic senator from New York. She has a long history of supporting the largest banks in the entire country. I don't care what she says in her party platform, she knows where the bread is buttered, and it's working with the biggest banks.feedback

The Republican in Congress seem to be going in one direction to solve what they perceive to be a major problem – Dodd-Frank. And the Republicans on the National Committee seem to be going in a different direction which is a direction the Democrats agree with.feedback

They like them because on a relative basis the cost of doing banking with a big bank is less than doing business with a small bank. We know the business models have not worked for what I'll call monoline businesses for small banks, but we do know the big bank model does work.feedback

Outside the United States, there's no country which basically has made it illegal for a bank not to be involved in a capital markets capacity, and it would kind of make the United States unique in that regard, and it would drive up the cost of the banking in the United States.feedback

I think what JPMorgan did was change its strategy this year from what it had been over the last couple of years, in that it started pushing the sale of loans much more aggressively and that showed up in their earnings and I think that you might see the same thing with other banks.feedback

Quarter over quarter there has been a recovery in the capital markets area.feedback

The demand for junk is going up exponentially.feedback

Banks in the United States in 2015 made more money than they ever made in the history of the history, despite the fact that interest rates were historically low, the economy was not growing very rapidly and there were still lawsuits and fines being applied.feedback

They no longer have an argument as to why investors should commit funds to the industry, because basically they haven't explained why the industry is a growth entity, and therefore they are dividend stocks.feedback

In the case of both Citi and Bank of America, you have two companies which are selling at 35 to 40 percent discount to book value which is, in my view, absurd. I think these stocks are unbelievably attractive. And I think that both stocks over the next 18-24 months should be able to double.feedback

Looking forward for the remainder of the year…regional banks will do well, and it's (a) toss-up considering what's going to happen in the capital markets arena.feedback

He's trying to swing way above the weight of the Minneapolis Fed. He didn't come from California just to rub elbows with ranchers in Helena.feedback

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