Here is a shocker from Dick Bove, the outspoken analyst at Rochdale Securities:
"What is clear, assuming I have the numbers right, is that CEOs of banks are doing considerably better than bank employees and bank shareholders (see Appendix E).
"o In banking CEOs may earn on average about 50 to 100 times the average worker depending on the calculation.
o In the brokerage sector, the gap between employees and the CEO is somewhat less but the average pay for the brokerage employee is considerably higher than that of the bank employee."
Bove points out: "The change in average market capitalization for the 23 domestic stocks followed by Rochdale Securities was negative 30.7% from December 31, 2010 to December 28, 2011 (see Appendix A). The worst performer by far was Bank of America (BAC/$5.42/Buy) with a drop of 60.4%. The best performer was U.S. Bancorp (USB/$27.23/Buy) with a decline of 0.3%."
He also thinks financials are oversold and now might be the time to begin buying such beaten up dogs as BAC.