Market Overview

O'Leary Doesn't Like Regional Banks


Investor and "Shark Tank" judge Kevin O'Leary was a guest on CNBC to talk about regional banks.

O'Leary, speaking from Montreal, Canada, where he is currently exploring a bid to enter the race for the leadership of the Conservative Party of Canada, offered his take on regional banks.

According to O'Leary, now that President-elect Donald Trump's governance is set to officially start, reality is set to kick in for the regional banks. Specifically, it's now clear it will take a long time before any new regulation is passed through that will benefit regional banks earnings.

"Here is the bottom line," O'Leary added. "Regionals have really ugly balance sheets. They have horrible capital requirements still there because of regulation. There is nobody out there increasing their earnings estimates for 2017 and we had a lot of optimism."

O'Leary said he "doesn't have a problem" with the financial sector as a whole and investors should want to own a "Goldman Sachs Group Inc (NYSE: GS) balance sheet, not some crappy little regional bank which doesn't have any relief yet."

O'Leary also noted that he's short regional banks, but hasn't made a profit on the trade yet until Thursday as the SPDR KBW Regional Banking (ETF) (NYSE: KRE) fell more than 2 percent.

Posted-In: Canada CNBC Kevin OLeary regional banksMedia


Related Articles (KRE + GS)

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial
Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

KemPharm CEO On Recent Results, Catalysts And Prospects: 'ADHD Is By Far The Larger Market Opportunity'

How To Save The Peso: Acquire Twitter And Close The Service