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Bove: Credit Suisse Should Buy Northern Trust

Rochdale Securities Richard Bove believes Credit Suisse should buy Northern Trust.
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NEW YORK (

TheStreet

) -- Rochdale Securities Richard Bove believes

Credit Suisse

(CS) - Get Credit Suisse Group AG Report

should buy Northern Trust

(NTRS) - Get Northern Trust Corporation Report

.

The analyst wrote in a note that buying U.S. assets is very attractive for Swiss banks such as Credit Suisse because of the difference in currency values between the Swiss franc and American dollar.

Bove suggests that the bank could be looking at increasing its private banking and "agency" type businesses "with an investment management company with very high income clients," such as Northern Trust.

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"Its balance sheet is 33% cash and management has no ability to withstand a takeover bid. Nor has management shown any skill in getting the price of the stock higher," Bove wrote in his note. "Northern Trust is selling where it sold in 1999. Will Credit Suisse make a bid? I have no idea. Should Credit Suisse make a bid? There is no doubt that both the Northern Trust and Credit Suisse shareholders would benefit."

--Written by Maria Woehr in New York.

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