Dick Bove: Is he credible?

Yesterday, on CNBC, Dick Bove said that it is time to by banks and that financial crisis is over. Here is article:  “Bove says financial crisis over, buy banks “.

However, Dick Bove is person who upgraded rating of Bear Streans to “market perform” from “sell” in February 2008 (“Analyst: Brokerage Outlook Improving“):

“Bove also upgraded Bear Stearns Cos (BSC) and Merrill Lynch & Co. (MER) to market perform and put a buy rating on Merrill Lynch.”

 And BSC rating was reiterated just few days before BSC collapse.

Karl  Denninger wrote an excellent post about this controversy: http://market-ticker.denninger.net/2008/03/dick-bove-bear-stearns-and-controversey.html. This is a must read.

Now, my question is: Is Dick Bove just lying and manipulating the market as analyst were doing that during 2000/2001 crash or he just made a bad call?

Either way, I think it might be appropriate for CNBC and MarketWatch to mention this “mistake” when quoting Dick’s prediction. Just people have some perspective.


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