Dick Bove


Last quote by Dick Bove

There's a reason why all these bank stocks are cratering. It's because of the belief that none of the Trump programs will be put into effect. There won't be enough money in the government to allow for a tax cut and fiscal stimulus program if in effect the government can't even pay the interest on the debt without borrowing the money.
Mar 21 2017
Dick Bove has most recently been quoted in an article called The Trump bank stocks rally is over, at least for now. Dick Bove said, “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.”. Dick Bove has been quoted a grand total of 51 times in 31 articles.
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Dick Bove quotes

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.

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.

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.

Any thought that this Act can be repealed is simply ludicrous.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.

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.

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.

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.

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.

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.

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.

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.

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

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

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.

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

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

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.

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.

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

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.

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.

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

The misrepresentation of the industry is really beyond belief.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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