Wells Fargo being more of a regional money center, but it is a money center, and into a company like
(PNC - Get Report)
, which didn't even have a good quarter, but the stock is flying.
(BBT - Get Report)
had very big compression net interest margins, but the stock is flying. I don't think Key is going to have a compression net interest margin. Key's going to be blessed on all cases, but this is where the action is. It's time. You're in Citi, you have had a big gain, time to go. You're in Bank of America, you've had a big gain, cut it in half. You find a regional you're comfortable with, OK?
, Key, BBT,
, ticker FHN, you find a regional you're comfortable with and you buy it right here, right now.
And just quickly, though, on Citi, this was the first quarter ...
... with CEO Michael Corbat at the helm. How long do you think before we start to ...
Well, I mean, here's the problem with Citi. They've got a couple of components. A lot of moving parts.
You've got the Citi Holdings. I keep waiting for that to be gone or be brought back on to the balance sheet, because it's good, which is what I thought would eventually be happening and that's not happening. You have this great emphasis on emerging markets. Emerging markets have finally come back to life. In the interim, Citi spent a fortune becoming the king of emerging markets. Then, at the exact bottom of what I think's going to be the emerging market cycle, they fired former CEO Vikram Pandit who designed this. They decide to go with a traditional commercial banker as the new CEO, which is good, because commercial banking is going to become ascendant, as I mentioned in the regionals.
My problem is that this was an emerging market play, not a bank play, so I got to start putting it through the prism of banks. I don't even like it as much of a bank play. As an emerging market play, I liked it. So I was a believer in Pandit's strategy. Maybe he wasn't executing well, but that was a gaining factor. All the other banks are largely domestic. This is 65% international, but they've decided, I think, to say, hey, you know, we're pulling back, just when they should be going forward with the emerging market strategy. I think that Pandit may have been the wrong man because they couldn't return capital under the regulators, but the strategy was a good one. I'd hate to see them back away from it. Citigroup is unfathomable if they are backing away from it.