Dick Bove


Last quote by Dick Bove

I think it's part of the normal credit cycle, credit losses have been too low and they're going up. There's also been an erosion in credit quality in consumers and that erosion is related to subprime lending.feedback
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Oct 13 2017
Dick Bove has most recently been quoted in an article called Dick Bove explains why JPMorgan and Citi sold off: They failed some important tests. Dick Bove said, “Citigroup failed on all three of those tests, JPMorgan failed on two of them. Both companies were unable to increase their loan volume in any meaningful way – they were up maybe 2 percent year-over-year. Both companies saw an erosion of the quality of their loan portfolios … and one of the two firms, Citigroup, was unable to increase its margins despite the fact that interest rates have been up by some 100 basis points over the last two years.”. Dick Bove has been quoted a grand total of 99 times in 54 articles.
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Dick Bove quotes

Jul 10 2017

Now think about that. If you're going to reduce the capital of a bank at a time when interest rates are rising, you're reducing the present value of the business. So why should I go buy a stock that's reducing the value of its business, reducing the ability to grow its earnings?feedback

Jun 26 2017

These companies have completely lost their way ... They have no vision, they have no concept of how to grow these businesses. They have no idea how to use the capital they've been entrusted with.feedback

Jun 26 2017

Banks are selling the perfect no-growth strategy – i.e., we have no idea as to how to grow our businesses so we are giving away shareholders money primarily to people who do not want to have anything to do with us.feedback

Jun 23 2017

They have no vision, they have no future outlook which says 'this is what's going to be happening in this industry five years from now, this is how much capital we're going to have, this is how we're going to deploy it to grow our earnings'. What it (the stress test) shows is that the American banks are not having any difficulties at the moment. It indicates that they can generate staggering amounts of capital over relatively short periods.feedback

Jun 23 2017

A lot of the stuff which is being proposed here is not so much because it's going to create this tremendous increase in bank earnings but it's going to reduce tremendously the cost of running a bank.feedback

Jun 23 2017

What you have is kind of a mess in terms of trying to figure out what these companies are, what they're doing, where they're going - and that keeps the multiples on these stocks relatively low.feedback

Jun 16 2017 - Trump Presidency

This is not arcane 'stuff.' It is 'bread and butter' analysis. You need to sell more widgets to get more earnings and make your stock move higher. At the moment, banks are not doing this.feedback

Jun 07 2017

This may be some type of hybrid socialism but this country is not going to give this system up in a desire to return to pure capitalism – a system that it no longer trusts. Thus, despite the lawsuits, the banking industry must look to its own resources to avoid more onerous regulation.feedback

Jun 07 2017

It is clear what the government wants. It wants smaller, monoline financial companies to operate the system. This is what investors would appear to want. The time has come to give both interested groups what they want. Moreover, since bank managements do not know what to do with their capital, they should be broken up. I do not believe that this would be good for the United States but it is what everyone wants.feedback

Jun 07 2017

For the 50-plus years that I have been doing this job, I have always believed that large multi-product banks backed by a multifaceted system of protection has served this country and its financial system unusually well. History would clearly support this judgement (compare the 20th century to the 19th century in banking). However, the government no longer wants the multifaceted back-up that has protected the financial system. It has ripped it apart. It no longer wants banks that are able to compete in the global financial arena. It is forcing the biggest banks to shrink.feedback

Jun 07 2017

The time to consider breaking up these companies is here. The time for the industry to develop a vision is here. The time to continue to be buried in government by agencies that lean toward socialism and not capitalism and democracy is not likely to end. Banks must take control of their destiny if their stocks are going to do well.feedback

Jun 01 2017

Bank stocks "are even more treacherous than you think. Over the last six months the ability to sell loans has evaporated. Basically commercial and industrial loans, which were roaring at 7 or 8 percent year-over-year gains, are struggling to grow at 1 percent. The one thing you can be sure of with the banks over the next few months is loan losses are going to grow pretty substantially. If you take a look at the consumer sector, you're seeing major difficulties arising, in selling if you will, credit card loans. You're seeing difficulties in the automobile space.feedback

May 25 2017 - Trump Presidency

There are significantly different wording changes in the 2017 budget proposal submitted by President Obama and the 2018 proposal submitted by President Trump related to Fannie Mae. President Obama clearly states his desire to get rid of this company. President Trump makes no such statement. This is a major change in policy.feedback

May 25 2017 - Trump Presidency

Clearly at this point no one knows what the outcome will be. However, it seems likely that a comprehensive housing finance reform package will be presented to Congress possibly by year-end. What is very clear is that the outlook for this company has changed. It will be there to guarantee your great grandson/daughter's 30-year fixed-rate mortgage.feedback

May 01 2017 - Trump Presidency

He probably made a statement to them that they wanted to hear. In the last few weeks he has been heavily campaigning again, and I think this is just part of his campaign.feedback

May 01 2017 - Wall Street

The theory has always been the sum of the parts is worth considerably more than the whole. You might find a lot of investors who say that (if) they're going to break up these banks, they're more [valuable] in pieces than they are together, I'm going to buy them.feedback

Apr 25 2017 - Dodd-Frank Act

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

Apr 18 2017 - Bank of America

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.feedback

Apr 18 2017

The big one that is glaring and sticks out is the decline in FICC. That was totally unexpected and totally aberrant as to what its competitors are doing.feedback

Apr 12 2017

Confrontations between the corporate office and the divisional offices are highly likely. Departures by top sales people are quite likely as they move to less restrictive operating environments where they can make more money. The biggest battle ahead is whether this company can be effectively managed. The stock should be sold until that question is answered.feedback

Apr 12 2017

I think you should be getting out of the banks right here. I think they are a very treacherous area to invest in. You are going to have to wait till the fall before you are going to make any money in bank stocks. I still think JPMorgan is one of the best companies the United States has ever created, under Jamie Dimon. That's a pretty good stock to look at.feedback

Apr 12 2017

What's happening now is if the yield on the 10-year goes down, which mean that the value of the assets of the banks go up, bank stocks go down.feedback

Apr 11 2017

It is quite possible that bank stocks will remain under pressure until such time as bank managements begin to focus on growing their businesses first and their stock prices second. In the past quarter, the desire to give away bank capital has not helped either.feedback

Apr 07 2017

We're really looking at a significant increase in loan losses in virtually every consumer category, in some commercial categories and in construction loans. Even though people are ecstatic about what might happen if interest rates go up and net interest margins get better, the bottom line is these companies are in businesses and the businesses are not doing well.feedback

Apr 06 2017

If you think about it as a business which has to maintain certain accounting standards, well they're not maintaining those accounting standards. But the market says, we don't care about any of that. All we care about is, Gee whiz, interest rates are going to go up,' or 'Gee whiz, interest rates are not going to go up. It's ridiculous.feedback

Apr 06 2017

We're seeing an increase in loan losses on credit cards, a big increase in loan losses on auto loans, we're seeing losses creep up on student loans, we're seeing it happen with commercial real estate in two places – on shopping center loans and on construction loans. So when people take a look at the loan losses this quarter, they might be a little bit surprised. We're seeing absolute declines, in some cases, in commercial and industrial lending. We're seeing a massive slowdown in auto lending. The only area of lending which is really hot and doing well is credit cards.feedback

Apr 06 2017

Credit quality is actually holding up pretty well out there. So credit loss is always something we worry about, but I'm not particularly worried about it at this point.feedback

Apr 03 2017

One issue that never seems to bother investors in bank stocks is checking theories against facts. And, the market always seems to move on the theories never the facts. This is highly dangerous investing.feedback

Apr 03 2017

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

Mar 21 2017

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.feedback

Mar 21 2017

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

Mar 21 2017

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

Mar 13 2017

Preet Bharara in my view should be hung by his heels. That guy was an expert in doing this type of thing.feedback

Mar 13 2017

This is a type of McCarthyism that we're using, if you assume that McCarthyism is gathering a consensus of the American people that some segment has done harm to the country. Once you've got that consensus, you're free to attack the group that you've isolated. That's exactly what happened here.feedback

Mar 13 2017

Getting rid of these guys is fabulous for banking, but it's also good for the American way of justice. What we saw in the last four years, I think it's an outrage against the justice system that supposedly exists in this country.feedback

Feb 21 2017 - Wall Street

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

Feb 13 2017 - Federal Reserve

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

Feb 13 2017 - Federal Reserve

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

Jan 13 2017

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

Jan 13 2017

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

Jan 04 2017

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

Jan 04 2017

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

Jan 04 2017

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

Jan 03 2017 - AT&T

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

Dec 05 2016

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

Nov 29 2016

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

Nov 21 2016 - Wall Street

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

Nov 09 2016

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

Nov 09 2016

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

Oct 19 2016

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

Oct 19 2016 - Goldman Sachs

Goldman Sachs hasn't come close to what it earned 10 years ago.feedback

Oct 19 2016 - Federal Reserve

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

Oct 14 2016

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

Oct 14 2016

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

Oct 14 2016

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

Oct 05 2016

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

Sep 29 2016

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

Sep 28 2016

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

Sep 22 2016

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

Sep 20 2016

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

Sep 20 2016

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

Sep 09 2016

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

Sep 08 2016

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

Sep 08 2016

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

Sep 08 2016

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

Sep 02 2016

Bad loans are below the normal level.feedback

Sep 02 2016

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

Sep 02 2016

The misrepresentation of the industry is really beyond belief.feedback

Jul 22 2016

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

Jul 18 2016 - Dodd-Frank Act

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

Jul 18 2016

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

Jul 18 2016

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

Jul 15 2016

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

Jul 13 2016

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

Jul 08 2016

The demand for junk is going up exponentially.feedback

Jun 27 2016

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

Jun 23 2016

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

Apr 14 2016 - Bank of America

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

Apr 14 2016

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

Apr 03 2016

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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