The situation with Deutsche Bank, which faces a potential $14 billion dollar fine from the U.S. Department of Justice, remains fluid. It may be forced to issue additional equity to raise capital or turn to the German government for aid.
Even with Deutsche Bank's struggles, JPMorganAsset Management Co-Head Jed Laskowitz's view of the overall financial sector as an investment opportunity remains unchanged.
"Policy makers have every incentive in the world to get this right," he said on BloombergTV's "Bloomberg GO" Friday. "The issues involving earnings, and the pressure on earnings by low [interest] rates, particularly European banks, are well understood by markets."
Markets have been pricing in the pressure and uncertainty of the low interest rate environment for some time, Laskowitz added.
"We think right now, if we think about the macro picture, we don't see a recession in the U.S. in the next 12 months," he said.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate DEUTSCHE BANK AG as a Sell with a ratings score of D. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: DB