Dick Bove: We're In A Golden Age Of Banking, C, BAC, STT, NTRS, BK Trading Below Cash Per Share

Dick Bove of Rochdale Securities thinks we're in new "golden age" of banking. He mentioned that bank shares are trading below cash.

"There's so much cash in some of the banks in the United States that they're actually selling at below their cash value per share. For example, Citigroup, Bank of America, Bank of New York, State Street, Northern Trust. They all sell at below their cash per share. What that means is, these companies now have a tremendous amount of liquidity which ultimately can be put to use to generate further earnings growth. And I think for the next 2-3 years what you will see, is that banks will actually increase their earnings at about a 20% rate per year, which will be far faster than what you're going to see from the industrial averages."

"Banks have more capital as a percentage of assets since anytime since 1934"

More bullet points:
  • 28% of bank assets are in cash
  • Non-performing loans are down
  • Net charge-offs are down
  • Delinquencies are down
  • Reaching point of being over reserved

Watch the CNBC interview after the jump, and the bankers vs. consultants rap battle in honor of the new golden age of finance.

History: Lehman Brothers In Play, Dick Bove Values LEH at $20, South Korean Bank Buy Out? 8/24/2008