Also in this playlist...
This transcript is automatically generated
Says banks are sick of waiting on Washington to figure out financial reform and times that this president and ended -- there's -- -- is true.
Top -- on the -- financial industries fund and financial services on joining me now from Rochester and not it's always great to see.
It looks -- this.
Overall it's going to be a lot less -- -- fun and Barnes found -- many people thought is there anything in particular -- will be off on the.
Well I I think the and any of these rules -- -- always have unintended consequences and for instance the the Fed just put a a paper out of -- consumer protection act -- was a 156 pages long.
And the devil's in the details for sure.
So I I think it's really not -- regulation that that's an issue here at all I think it's more.
Enforcement of rules that are in place.
And some clarification of of what rules are out there I mean for instance.
No bank really knows if -- -- operations they have today are exactly what they need too much too little.
You know I I -- a lot of it was like three -- dividends I think like we like to reinstate stock buyback plans.
And I think it's not this -- in his regulation here it's its regulators kind of getting some clarity on what the rules are that are already on the books.
-- with no clarity how do you invest in that environment -- just.
Avoid any stop any company that could be particularly hard hit by what could happen or could be interpreted aren't.
Well what's really interesting this is these companies are so cheap on and so many metrics whether it's price to book are priced priced future earnings.
Or reserve -- they felt.
That I think a lot of this is is in the stock through some cases even more in this than you know -- off in the -- -- You know regulation is lighter than people expect I think there's even you know a lot more room for upside.
You know I think many he's -- he's -- you know 56 times and -- normalized earnings and in some of the draconian rules -- media out there which I think you know aren't gonna come to pass.
You know just just take a little dent out of them but you know I really don't take many pounds of flash.
But you know the end of the day.
You know there's just a a study out -- the congressional budget office on impact of back taxes and it really came down do.
You know the end of the day that the consumers and -- borrowers end up paying paying for all these taxes and you know the government as many other places to do to go and manage itself and quite frankly -- a dollar on the banking system you're taking.
You know ten dollars of lending power so you know I think -- we are prior shall we talked about a hundred billion dollar bank tax and taking a trillion dollars of lending capacity out.
Clearly something we don't -- -- That's something -- did you pointed out maybe the people in Washington don't fully understand.
But -- on that note what are you buying here you've taught you focused more on your smaller.
Medium sized banks do you own any of the large banks I know at one point and Citigroup even though the American -- and about a quarter of it.
Yeah at least we -- and Citigroup and I can tell you the real difference here in Citigroup.
You know and as such as myself saying this some.
Management is now quietly confident.
They're they're not apologetic.
They're not on the defensive they've accomplished a lot of things in so -- you know yes sounds Citigroup and I'm pretty -- -- I think there's a fair bit of upside -- you gotta gotta be patient.
I'd love an opportunity to buy more should the government sell some stock and -- -- a major major overhang and the stock will be a very well after the government sells stake.
It kind of great city with come back soon always a pleasure anti ship president of -- -- -- by -- -- Inventor of the top performing Burnham financial industries find in the financial services.
In -- take care have a great weekend into.
Filter by section