Dick Bové: New York-Based Banks Should Move To A State That Won't Hold Them Accountable For Fraud
In the face of "constant hostility"—including lawsuits and a general lack of interest in promoting the industry—banks ought to leave New York and head for friendlier terrain, analyst Dick Bove said. In a note released a day after New York Attorney General Eric Schneiderman announced a lawsuit against JPMorgan Chase, Bove said it's time for banks to head to states where they won't face such an unwelcoming environment...Bove does not address the merits of New York's case against JPMorgan, the largest bank by desposits in the U.S. But he said the general tenor towards banks in the state make it no longer feasible to operate there. "I am constantly struck by the fact that Michigan does not sue the auto industry; Texas is not suing the oil industry; California is not suing the entertainment industry; and Florida is not suing the tourism industry," Bove wrote. "They do not sue farmers in Iowa. New York never stops suing the financial industry. Why? What do these other states understand that New York does not?" [CNBC]