There remains skepticism over banks. Even professional investors, who were major bank investors in the past, don't want them now. Kenneth Feinberg, manager of the Selected Funds, told investors at the recentMorningstar conference that he's come to the conclusion that the largest financial institutions can't be adequately scrutinized — even by a firm like his, which for years has dug through bank financial statements.
After getting stung by bank stocks in the financial crisis, Feinberg said he became "sensitive to what's actually disclosed by these companies with $1 trillion in assets. It's almost impossible to get your mind around that. You have to have an extra-sensitive antenna when 5 percent of the business doesn't have to be disclosed."
At the Morningstar conference, numerous fund managers said they are leery of banks now.