A couple weeks ago, Dick Bove was out there preaching his 'this is the new golden era of banking' sermon. Now he is getting down to specifics starting with BAC. They will be ushering in this period of unbridled profitability by enjoying "horrific" loan losses that may require them to increase their loss provisions to $46 billion. Possibly spurred on by the unambiguously bullish comments coming out of the G8, Bove raised his price target on BAC by approximately 36% from $14 to $19 and had some choice words for anybody bearish on financials.
It is now being conceded, by even the most bearish observers, that claims that the industry was insolvent were incorrect and, therefore, banking will survive and possible thrive