"Street Talk" is a podcast hosted by S&P Global Market Intelligence that takes a deep dive into issues facing financial institutions and the investment community.
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Bank stocks and regional bank stocks in particular have rallied over the last month, and there is further room to run, according to Joe Fenech, Chief Investment Officer at GenOpp Capital Management.
In the latest Street Talk podcast, recorded July 16, Fenech said sentiment toward bank stocks is improving and that the long bear market in bank stocks ended in May 2023. The investor said the recapitalization of New York Community Bancorp Inc. in March 2024 could serve as the turning point of this investment cycle now that "smart money" has rescued one of the sector's biggest problems.
"That event reminds me very much of the recap of Bank United back in '09," Fenech said in the episode. "The stocks bottomed first in March of '09. And then a few months later, you have John Kanas and Carlyle recapping Bank United, and then that paves the way for the recap of the sector, and sentiment slowly got better from there."
Fenech added that the sector as a whole does not need to be recapitalized this time around, and the nation's largest banks are in far better shape than they were in the aftermath of the financial crisis.
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