Dick Bove says the possibility of a consumer finance protection agency is killing bank stocks, and that, once again, Congress and Geithner don’t understand how the financial system works.
Bankers are already addressing the threat that this new agency poses to consumer bank profits and have taken several actions, including
adjusting the fees charged on overdrafts “hoping to blunt Congressional action. “
And being a bit overdramatic, he adds that fears of what the CFPA might do could also easily result in banks evacuating consumer finance businesses.
He slams Congress and Geithner for several other reasons too. For instance, he says that requiring more capital is resulting in banks refusing to increase their balance sheets, which in turn, prevents them from lending.
Same goes for capping bankers’ comp- They still don’t have a clue.
This appears to be a call for the “best and the brightest” to go somewhere else. Somewhere else is not necessarily another country with more rational legislation; somewhere else is likely to be a different industry. How the banking industry is to improve its management skills and eliminate its excessive risk taking by incenting to executives to go somewhere else has not been explained.
And of course, Bove cannot help himself again and takes a stab at Congress regarding BofA’s acquisition of Merrill, (hey, the man’s in love) saying that although it was a “brilliant stroke, ” Congress can only see evil and is set on a trail to punish the bank and the men prescient enough to do the deal.
Maybe Bove should just run for Congress.