With the sequester set to kick in March 1 -- today -- across-the-board spending cuts of $85 billion this year and $1.2 trillion over the course of 10 years are certainly going to have an impact on the economy and its ongoing recovery from the financial meltdown of 2008. In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson tell investors why it isn't just government agencies that are going to be affected by this; banks are going to take a hit as well. Matt tells us how the banking industry will be exposed to the sequester spending cuts, and why he, for one, isn't selling off his banking stock holdings just yet.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Is Bank of America's CEO a Two-Faced Bitcoin Critic?
The megabank's top executive is telling customers that they can't buy bitcoin from his company, but his staff is doing a lot of patented research in this field. So what's up?
8 Key Takeaways From Bank of America's Earnings Report
Bank of America beat fourth-quarter earnings estimates, but there's a lot more you need to know.
These Bank Bets Put Even Bitcoin to Shame
Find out why you have less than a year left to use some of these unusual investments.