Hold the Mayo? No, Bank Analyst Shrieks: Sell It!

In a recent magazine article, Prudential banks analyst Michael Mayo told investors to expect "no-holds barred research" from him. Thursday, in slamming the banking sector, Mayo illustrated just how few holds will indeed be barred.

While most analysts hedge negative opinions on a stock with words like "neutral" and "accumulate," the newly appointed Prudential analyst cavalierly slapped nine sell ratings and seven holds on the banks he began covering. Only three of 19 received strong buys. The Philadelphia Stock Exchange/KBW Banks Index, which measures the country's 24 largest banks, edged up 0.4%.

Mayo, who was let go from Credit Suisse First Boston in October following the firm's buy of Donaldson Lufkin & Jenrette, has plenty of things to say about the banking sector. Many in the industry, including Mayo, believe he was let go from CSFB for being too negative on the banks he rated, a situation that can cause friction regarding the lucrative underwriting relationships that investment banks are believed to covet. In December, Prudential indicated it wanted to move toward more objective research. ...