1 Big Reason to Like Banks Again
Today, analyst Austin Smith discusses more reasons for investors to consider buying big banks. After the 2008 crisis, banks wrote off risky loans and began making more conservative investments. Since then credit card defaults have continued to trend lower, and banks have a little extra cash freed up that they previously held to cover bad loans. This should help banks offset weaknesses in other areas, and perhaps encourage more investment and cash flow that can stimulate growth. While this growth only reflects one aspect of a big bank's operations, Austin sees it as one of many reasons to like big banks.
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The article 1 Big Reason to Like Banks Again originally appeared on Fool.com.Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase. and has the following options: short OCT 2012 $55.00 puts on American Express Company, short OCT 2012 $60.00 calls on American Express Company, and long OCT 2012 $65.00 calls on American Express. Motley Fool newsletter services recommend American Express. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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