This could impact banks with a huge exposure to mortgage-backed securities and low overall securities yield.
Despite these concerns, Penala still expects buybacks to triple in 2013, with
(JPM - Get Report) and
(C - Get Report) poised to return $4 billion and $15 billion next year.
Among the regional banks,
(RF - Get Report) and
(BBT) are her top picks. These banks might ask for debt extinguishment, boosting net interest margins and earnings power.
Written by Shanthi Bharatwaj in New York.
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