Dallas Federal Reserve President Richard Fisher has led the charge, reasoning that the largest banks have only gotten bigger since the crisis and continue to pose a major threat to the American economy. Bank of America , Citigroup and JPMorgan Chase have been mentioned as possible targets to split up their commercial and investment banking divisions.
Bove's banking analysis is widely followed on Wall Street, which stays attuned to his buy and sell ratings on the sector. He is currently bullish on banks in general.
But Bove countered that the presence of big banks is important for the US to maintain its position on the global stage, particularly in light of how much debtthe government continually issues to fund its deficit spending. He points out that of the 21 primary dealers for U.S. Treasurys, 14 are foreign banks. In 1974, those institutions were exclusively American.
He reasoned that the European Union and nations such as China and Japan have more people and more currency afloat than the U.S. As global population grows, the American regime will face numerous challenges for currency supremacy.Page 2 of 4 | Prev Page | Next Page