Dick Bove of Rochdale Securities spoke with FOX Business Network’s Stuart Varney about the President’s proposal for banks, saying it would be “very bad” for the economy, but “very good for stock holders.”
Below are excerpts from the interview: Courtesy of Fox Business Network
On whether the President’s proposal would be good for the economy in the long term:
“It would be very bad. It would be very good for stock holders in my view, because you’re going to break up the biggest banks, creating opportunities all through the financial system. For the economy it would be quite negative.”
On whether the President’s proposal would prevent another financial panic:
“Absolutely not…We’re not going to stop any financial collapses in the future.”
“It [financial crisis] doesn’t start within the financial industry, and therefore to think that you can stop this by changing the structure of the financial industry is a fallacious view as far as I can see.”
On the structure of the big banks:
“The sum of the parts is worth more than the whole…The whole price of Merrill Lynch would be greater than the whole price of Bank of America, so why not pull Merrill Lynch out of Bank of America? These guys are not creating wealth for shareholders.”
