Still Good Value for Investors in Banks?
Billionaire investor Jeff Greene on the outlook for the financial sector.
- Duration 6:01
- Date Sep 20, 2012
Billionaire investor Jeff Greene on the outlook for the financial sector.
Also in this playlist...
This transcript is automatically generated
It is of of that day for banks I think one UBS downgraded Morgan Stanley Citigroup and Goldman Sachs -- wasn't the worst call of the world they downgraded them from -- to new trolls but.
Bank of America is cutting 161000.
Jobs that according to the Wall Street Journal and all of this on the heels.
Of increased threats of cyber attacks and some of them actually getting a little bit inside the -- -- their joining us now though in a Fox Business exclusive from Los Angeles.
To tell you whether he's still in with a big banks and investing in them -- billionaire investor.
Jeff Greene a from the LA Jeff thank you for being -- first thought was we'll bring Jeff because he's been very bullish on the banks -- you still.
Absolutely I mean.
-- if you look at Bank of America Citi and Morgan Stanley all three of them are trading at between 6571%.
Of tangible book value well.
You know I I can tell you that with what these banks went through tangible book value of the most part -- a pretty conservative calculations so if Morgan Stanley went out of business tomorrow shut their doors and let -- -- fired all their employees the stock would be worth almost 50% more than in the seventeen dollars -- so that it's trading at today so.
I think there's still very compelling compelling values.
When Jeff talks about book value folks and we talk about this yesterday -- I'm so glad -- bringing it up book value as you say it's it's almost like a cleaner number Warren Buffett likes to look at it act that's in both assets and liabilities and if the company were to be liquidated which we're not saying they are so you still like them.
Including Bank of America because now with thousands and thousands of layoffs Jeff.
Does that weaken the bank or to they've been focused on the Merrill Lynch part of that which could be really of real sort of rainmaker.
Well look I'm not inside Bank of America's I can't tell exactly.
Who -- -- -- why but I assume that they're making intelligent decisions and that there.
You know that just consolidating jobs to solving locations and -- themselves are tightening their belt the make himself up but in the government position to be even more profitable but you know these banks are just.
So well positioned for the -- recovery which we're going to have a mean there's no question what kind of a cyclical bounce you can see right now certainly in multifamily and house saying.
Is that there were just aren't that many banks out there they're gonna be coming up this -- to make mortgages to make auto loans and I think whether it's -- America Citi.
They just an excellent shape to make huge profits going forward did you add to your position on a -- like that's.
No you know I already have a position and I coupled with -- -- -- lost some I was on I think it was right after the JPMorgan.
But London -- thing happened and I think I acted out at that point yet and truthfully about the stock went down right after -- but now it's up quite a bit for more rapid shift originals excite you at all the smaller banks.
Well certainly I don't I don't have any position regionals because you can invest -- everything but I think.
Every if to look at every regional bank on its own merits and justice you know see what -- potential book value is what their business plan as what the business model isn't.
Make a decision from there.
Do we care do you care who Wall Street might be backing Charlie Gasparino was just on before you and he was saying that.
-- Wall Street money is still flowing to Mitt Romney because quote consider the alternatives that Obama is not friendly enough to Wall Street and that.
He would do things that would crimp their profits what pushed through the -- -- Dodd-Frank what -- stamp on that.
Well I mean look if you just look look at what's happened to Wall Street since President Obama took office I mean that Wall Street -- has come from being near bankruptcy and liquidation after Lehman Brothers to.
Making I've almost record profits so I think the president of the stock markets at all time highs I mean that -- that are as.
President Obama is very good for -- -- president Obama's been very good for the stock market.
You know this certainly leadership issues that I think -- lacking in both candidates I think that.
You know it's unfortunate in my view an America that this so much weight put on who the president -- I mean.
Our problem is -- really do too much bigger issues like you know that we weren't prepared for the high speed industrialization of China.
And I think we all wish that a present common market one of president to wave his magic wand and solve the problem we're really need as we need.
Neither leadership skills of Barbara Ronald Reagan or JFK.
To kind of bring Americans together to understand that it's -- economic world -- out there and we have to.
We have to fight and win that war like we do we go to electric -- -- all those gold medals.
Well you are billionaires yourself made you worked your way through college I was like to point that out so you come from a perspective where when you hear about.
Mitt Romney talk about the 47%.
You know and he's he's clarified -- some people stick by what he said saying yeah there are a lot of people on government assistance where do you stand on -- Why you know when I heard that I taught my mom's 85 years old lives and in South -- I told she's got to get on the followed Oliver France to a collecting Social Security -- -- doll you know part of these stupid the stupid victims.
Get it on the got to go out and get some jobs and you know -- attributed don't be so lazy I mean I think it's just silly -- you know talk about a 47%.
Of the population and if you look at who's in there -- -- -- is disabled veterans he's talking about its people have served our country and come back.
You know unable to work at all its senior citizens who have worked their whole lives and -- Social Security.
Of course there's always people -- the game the system and take advantage but.
You know I was a candidate as you know the US Saturday far my I've visited visited people who -- -- -- public assistance and food stamps and public assistance housing.
And I could tell you.
-- of them want to be on public assistance people white America most Americans they want to work they want to take care of their families that want to feel good about themselves the problem -- Those -- Ford manufacturing jobs that that I knew so -- -- -- in my neighborhood when I was a kid he disappeared.
And out we have to get together as a country and put Americans back to work and that's not gonna happen by just having continued low tax rates gonna happen by the government does have to be involved.
And I think that that means -- you know let's have a national infrastructure -- respond to the -- on the private sector to rebuild the infrastructure of the country.
You create you know good paying jobs where.
Americans can have some dignity -- work again.
At -- he said bigger issues to tackle here Jeff great to see you thank you for coming on to tell us he's still invested my little financials.
We appreciate you being here Jeff -- billionaire.