Wells Fargo (WFC)

He avoids the regulatory glare. He goes for regional banks. However, he would buy this one here.

He does not own any of the banks in Canada or the US. A lot of the banks delivered significantly. WFC-N survived. It is probably one of the best managed banks over time. They compounded their book value per share 11%. Returns will be lower because leverage has come down. They are buying back stock and increasing the dividend, but he shies away from the banks. He likes that they are retail funded rather than wholesale. You may want to add to the position on a pullback.

J.P. Morgan (JPM-N) or Wells Fargo (WFC-N)? She would favour this one because it is the one that she owns. J.P. Morgan is more capital market sensitive, so if you are really bullish on markets and financing, perhaps you could get more upside with it. To her this is a cleaner story and went through the 2008-2009 financial crises relatively unscathed. They are well-positioned for a recovery in the US housing and commercial credit. When she looks at banks, she looks at their sustainable ROE’s and ROAs and this one is the less volatile of the 2.

Well run bank that did not get into any trouble.

J.P. Morgan (JPM-N) or Wells Fargo (WFC-N)? Two very good, but different companies. J.P. Morgan is much more leveraged to the capital market side of things whereas this one is primarily a super-regional bank, much more housing market and mortgage driven. His preference is this one because of his view on the US housing market where recovery is only about halfway through. Both could be a good choice. (See Top Picks)

A lot of people think this is the smartest bank in the US, and this is why the stock has done so well. It may have done too well as the stock has had a tremendous move this year. Feels it is fully priced.

Very well-run bank. Tend to focus on the consumer. There is a great deal of stability in the US.

Perpetual preferred bond, issued by a high quality bank, one of the best banks in the world. Perpetual means you have to look at duration risk. It never has to be called. If rates rose significantly, this one would suffer. If it is one of the few long duration things he own, then it is fine.

An attractive company. He is very positive on the US economy. Bank lending is improving and increasing. This one has one of the highest returns on Assets of any of the banks, probably of the world. Cream of the crop. Prefers J.P. Morgan (JPM-N).

(A Top Pick June 4/13. Up 31.47%.) Feels this is the best managed bank in the US. Getting a great return on capital compared to their peers. Dividend of 2.7%.

Probably at the high end of its range on a valuation basis. Incredibly well run bank. A great US franchise. Primarily a retail U.S. Bank with a large mortgage book, which continues to do well and grows. Increased their franchise quite substantially with the purchase of Wachovia. (See Top Picks.)

Loves this one. A great story. Well managed. Looking at it in 5 years hence, the price will be higher and presumably you will have further dividend increases to support the price growth.

Feels the Canadian dollar will go lower and it will help US investments.

Bought recently. Number 1 in retail deposits and mortgage markets. There is a long way to go from here.

Probably one of the largest mortgage originators out there. As the housing market heats up and household formations get back to historical norms, loans are made a little more easily. Of all the banks, he feels this is going to be the major beneficiary of that.