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5. Marshall & Ilsley ( MI):

Marshall & Ilsley (M&I for short) is still suffering from credit troubles. Five, or approximately 22.7%, of the 22 analysts that cover M&I rate it at sell, according to the data.

UBS analyst Erika Penala is one of the bears. She reiterated her sell rating on the mid-cap bank in April following its first-quarter report, citing concerns that M&I's rate of credit improvement will be slower than investors expect.

While Penala is expecting construction loan losses in 2010 to be 36% of 2009's levels, she expects the pace of decline for M&I's total losses will be inhibited and the timeframe for any reserve releases will be pushed out.

M&I, while mostly located in Midwest states, also has branches in Florida and Arizona -- two of the hardest hit states during the residential housing bust. Another overhang is that the bank has yet to repay TARP-related funds.

Penala expects "core" commercial and industrial (C&I) losses to continue to climb this year, increasing "re-defaults" on M&I's residential real estate loan modifications and a protracted commercial real estate cycle.

The bank also faces revenue headwinds. "Continued portfolio run-off, elevated losses, and stagnant loan demand could pressure near term earnings , while deposit attrition from rising rates may impact longer-term," Penala told clients.

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