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) --

JPMorgan Chase

(JPM) - Get JPMorgan Chase & Co. Report



(C) - Get Citigroup Inc. Report

are still the top bank picks for Goldman Sachs' analysts, according to a report published Thursday.

On JPMorgan, the analysts argue shares will climb as the firm releases capital it had set aside to protect against investor put-backs on so-called private label mortgage-backed securities, a term that refers to MBS that wasn't guaranteed by housing giants

Fannie Mae



Freddie Mac


. As for Citigroup, Goldman's analysts cite an "attractive valuation" and "exposure to growth markets."

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Goldman's analysts downplayed weak performance from large-cap banks in the fourth quarter, chalking it up to "seasonality," as trading tends to be slower in the fourth quarter.

"We still believe that capital returns, clarity over regulation and continued growth in book values should support large cap banks in 2011," the report states.

Shares of JPMorgan were up 1.57% in early trading, with Citigroup shares higher by 0.62%. Shares of most other large-cap banks, including

Wells Fargo

(WFC) - Get Wells Fargo & Company Report


Bank of America

(BAC) - Get Bank of America Corp Report


PNC Financial

(PNC) - Get PNC Financial Services Group, Inc. Report


U.S. Bancorp

(USB) - Get U.S. Bancorp Report

were also higher in early trading.


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.