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Tuesday, October 18, 2011

Bove is Right About Government Destruction

Dick Bove of Rochedale Securities rightly blasts the government for its absurd and extremely damaging assault on the American financial industry.

"The last three AGs in New York—Eric Schneiderman, Andrew Cuomo, and Eliot Spitzer—have made their primary goal attacking the financial industry. Drug dealers are safer in that town than bankers are. Does the attorney general of Texas attack the oil industry? Does the AG of California try to put Hollywood out of business? Cars in Detroit? No, they're not that stupid. Now they're suing Bank of New York (BK), with the result that they're pulling jobs out of New York as fast as it can. Goldman (GS) is moving to New Jersey and Utah. Citigroup (C) is going anywhere it can find outside New York. JPMorgan Chase (JPM) is the only bank putting jobs in the U.S. and everyone flips out because Jamie says he's not sure we're taking the right approach to fixing the system? People are electing people who want to fire their neighbors. It just doesn't compute for me."

When the topic turns to Bank of America (BAC) and the $5 debit charge controversy, his dander goes right back up again. "Dick Durbin gets up on the floor of the U.S. Senate and encourages a run on Bank of America? How can a U.S. senator say that we should bankrupt the biggest bank in the U.S? Has he lost his mind?"

Senators are not new to destroying financial companies. Dem. Chuck Schumer caused a run on Indybanc a few years ago, which effectively destroyed the bank in a day. Durbin and Obama want to one-up Schumer and take down the biggest bank in the country and perhaps the entire industry.