Investors should be buying bank stocks, despite the Federal Reserve's "ridiculously" low interest rate policy, noted bank analyst Richard Bove said on CNBC Monday.
Bove — now with Rafferty Capital — said in a " Squawk Box " interview, "You should be buying Goldman Sachs [ GS 207.80 +2.85 (+1.39%) ] ... Bank of America [ BAC 16.75 +0.02 (+0.12%) ] ... Comerica [ CMA 48.67 +0.00 (+0.00%) ]. You should be going up and down the scale and buying these stocks."
He added, "You're going to get is what you've gotten the last four years, which is continuous up earnings, increases in dividends, [and] higher stock buyback programs."
His bullish stance on bank stocks also comes in the face of tighter regulations on the industry. "You've had virtually every negative development that you could throw at this industry occurring. But in that four year period ... you went to all-time record earnings."
(Read More: 4 Banks to Buy Now )
Another factor working against the banks is near-zero interest rates. Describing himself as a supporter of Fed Chairman Ben Bernanke, Bove actually blasted the central bank's policy. "They've cut interest rates to a level which is crippling bank earnings to some degree and which is crippling the economy."
(Read More: No Risk of Higher Interest Rates This Year: Pro )Page 1 of 2 | Next Page