Kovacevich “25 percent off Winter Sale” — Bullish on Banks, Wells Fargo & Co(NYSE:WFC)

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Wells Fargo

Former Wells Fargo & Co(NYSE:WFC) CEO and Chairman, Dick Kovacevich who previously held executive positions at Citicorp, General Mills and Norwest, believes the rest of the world has issues and that they don’t yet apply to the United States. There is a risk of a recession in the US but he doesn’t believe there will be one. He is bullish on US Banks. In an interview on CNBC he shared some interesting comments.

On Bank Stocks

“I don’t think there is a great worry of impairment unless there is a very very long and serious recession.”

He pointed out that Banks are selling for 10 times earnings with 2.5 to 3 percent dividends, relatively to rest of the market cheap. He has a ton of Wells Fargo and bought even more yesterday because they are having their 25 percent off winter sale.

He wouldn’t go so far as to endorse Deutsche Bank AG (USA)(NYSE:DB) saying matter of frankly, “He wouldn’t”, when asked if he would buy the German lender.

Kovacevich comments on heels of Jamie Dimon making a more than $25 million dollar bet on JPMorgan Chase & Co.(NYSE:JPM).

The JPMorgan CEO made a purchase of over $26 million, bringing his overall holdings to 7.79 million shares valued over $415 million in personal and family accounts.

 

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