In this video, Matt Koppenheffer and David Hanson discuss the big catalyst for bank stocks. David makes the case that it will be business spending that propels bank revenues, as Big Business is sitting on a pile of cash that needs to go somewhere, and business banking is a higher-margin business than consumer or real estate business. For example, most of the rebound in real estate has been from mortgage refinancing, not a big-margin activity. No doubt new mortgages will help, David says, but the money for bankers is in Corporate America.
Check out the video for more details.