Annie
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- Nov 22, 2003
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That doesn't sound good...
Bank of Americaâs Bernstein Says Sell Bank Stocks After Rally - Bloomberg.com
Bank of Americaâs Bernstein Says Sell Bank Stocks After Rally - Bloomberg.com
Bank of Americas Bernstein Says Sell Bank Stocks After Rally
By Eric Martin
March 23 (Bloomberg) -- Investors should sell bank stocks after they rallied 12 percent today because the Treasury Departments plan to buy toxic assets wont stop profits from dropping, Bank of America Corp.s Richard Bernstein said.
Removing devalued loans and securities from banks balance sheets is a short-term solution that will delay the problems ultimate solution, which is bank takeovers, Bernstein said. The government wont be able to inflate the prices banks receive for selling bad assets indefinitely, he added.
The history of bubbles shows quite well that financial sector consolidation is inevitable, Bernstein, Bank of Americas chief investment strategist, wrote in a research note. Financial stocks will be attractive when the government tries to speed up that inevitable process. However, to the contrary, the government continues to attempt to stymie that inevitable consolidation....