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Anton Schutz of Mendon Capital Advisors weighs in on the state of the banking system.
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Were off the lows of the session the Dow now -- only only down a 181 points.
Is this selling overblown given the reasons people or throw it out today let's ask -- -- chief investment officer.
Then -- capital advisors manages the bar and financial industries fund.
And the financial services -- here's the reason today.
That -- that -- earlier the armed talks to form a government in Greece fall apart maybe they're gonna have to have elections again will they be able to.
Get the bailout that the country needs is this selling overblown is that really the reason Anton.
Well I mean half.
Uncertainty continues to breed you know markets that are uneasy.
The one thing that I take some comfort in is there's not a lot of stress and funding -- European banks at this point in time and I think that's important.
And worth watching something through -- -- and I have access to.
But European banks are not stress from a funding perspective.
I think a lot of the actions.
Europeans took last year between December.
Long term funding mechanism is really help the banking system stabilized I think it's very important critical here.
Emotions are on high ME some of the statements.
The other Greek leaders made this -- a -- new government nationalizing banks and not repaying debt.
Sure that's gonna spook people.
You know perhaps they should just let Greece go and let's move on -- ring -- threats to Europe for me I think we're all getting tired of this but.
You know we all -- -- coming in you know his interest -- yesterday we didn't have a terrible market.
All the year was a few comments data you know really pour salt in the -- -- yesterday.
Netted them well said and time that look at that because this is that this is your -- else are investing in financial services companies.
Looking at Bank of America and particular speaking of the soundness of Arab banks.
At stocks down more than two and a half percent today do you think that that's too much.
Well what you know what happens is the global macro players start to short large US financials.
And you know if you look at Citi JPMorgan Bank of America.
You know they are on the list of the large guys wanna short you know global financial banks.
Bank of America.
As as we all know you know did pass the stress test we know than repair motors are shedding assets are building capital.
And you know not a clarity on a lot of lawsuits that -- -- there's nothing new on the lawsuits.
But I think BankAmerica if you're long long term holder.
Is something that's worth owning I think -- short term -- it's gonna trade on these headlines in Europe.
And what -- what -- ever come back to the banks in a big way Anton what are you seeing in terms of your own flows.
Well they they came back pretty hard earlier this year I mean that the bank index outperformed actually everything else I think except for apple.
Earlier in the air and certainly last couple weeks would -- these elections in France and increase has been we'll have more pressure.
If you think thing is at least when I left my office to head of the studio today a lot of the small cap regional banks were actually flat to I even slightly up.
It's a larger banks are more under assault because these headlines and you know I really you know as have been saying for some time I think emanates gonna bigger driver of the smaller names the larger names -- on headlines for quite some time but.
-- we saw a lot of important things in March we saw the stress tests.
They all pretty much past the ones that failed only failed because they want to return to much cap we're -- -- dividends and buybacks and it -- the -- system is strong and and by the way the weakness in Europe the banks.
Is it is a opportunity for US banks to purchase assets from the European banks the very but big pools of loans.
And if they're not lending in Europe the means a big global players can actually.
You know put things on the balance sheets right -- and likely break the same are quite dropped unfortunately -- --
