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TheStreet Open House

Dick Bove's Least Favorite Bank Stock

NEW YORK (TheStreet) -- Of the more than 30 bank stocks followed by Rafferty Capital Markets analyst Dick Bove, M&T Bank  (MTB) is the one he likes least.

"It's in the midst of a major major restructuring of every aspect of its company because it grew too fast and didn't build the infrastructure necessary to keep up with that growth," Bove said, in a phone interview Wednesday.

He argues the bank was able to hide those costs because of the mortgage refinancing boom.

However, "the government is on their back big time -- both with the violation of the Bank Secrecy Act and the anti-money laundering laws. So I think their earnings are going to be disappointing. I don't think they're ever going to conclude their merger with Hudson City (HCBK) and I think their stock is substantially overpriced," Bove says.

M&T struck a deal to acquire Hudson City in 2012 for $3.7 billion but the deal had been bedeviled by compliance issues. 

-- Written by Dan Freed in New York

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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