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If there's anything that Wall Street doesn't like its uncertainty and it seems there's an abundance of it in the financials.
From the threat of a government crackdown to bonus outrage it's no wonder the Bank ETF too a sharp turn lower midweek.
In light of all the uncertainty, how should you trade banks? For insights we turned to widely followed analyst Dick Bove of Rochdale Securities.
Wall Street CrackdownOn Thursday Treasury Secretary Tim Geithner sparked fear in the hearts of investors when he signaled the administration is a few steps closer to cracking down on Wall Street and laid out four cornerstones of overhaul. Although we won't get into the nitty gritty here, Dick Bove has done extensive analysis of the reforms and tells Fast Money the administration’s new regulations will likely make the business of banking much less profitable.
“They’re going to push business out of the banks,” he says. And that will harm consumers.
”About 30% of consumers will find that banks don’t want to do business with them anymore,” he says, because banks will lose money on them. “We’ll see banks fire their customers and kick them out of the banking system.”
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