Mike Mayo Initiates Coverage On Banking Sector At Underweight At His New Firm

Former-Deutsche Bank analyst Mike Mayo initiated coverage on the banking sector today with an Underweight rating at his new firm, Calyon Securities. Mayo said loans losses will exceed levels of the Great Depression.

Mayo said, "While certain mortgage problems are farther along, other areas are likely to accelerate, reflecting a rolling recession by asset class."

Sell Rated:

• BB&T (NYSE: BBT)
  
• Fifth Third (Nasdaq: FITB)
  
• Keycorp (NYSE: KEY)
  
• Suntrust (NYSE: STI)
  
• US Bancorp (NYSE: USB)

Underperform Rated:

• Bank of America (NYSE: BAC)
  
• Citigroup (NYSE: C)
  
• Comeria (NYSE: CMA)
  
• JP Morgan (NYSE: JPM)
  
• PNC Financial (NYSE: PNC)
  
• Wells Fargo (NYSE: WFC)

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