FTXO - Certain banks are in crisis not the banking system - Harris Associates' David Herro

2023-03-28 14:21:47 ET

David Herro, the chief investment officer for international equities at Harris Associates, said Tuesday that the banking system itself is not in crisis, even if some individual institutions have run into serious problems.

In an interview with CNBC, Herro argued that the rapid movement of news and events has led to unnecessary concern about the overall global banking system. He noted that banks have doubled or tripled the capital on their balance sheets, making the current situation very different from that faced in the 2007 and 2008 crisis, when banks were "undercapitalized" and their assets were rotten.

In terms of individual stocks, Herro identified BNP Paribas ( OTCQX:BNPQF ) as "Europe's probably best bank."

Looking at Tuesday's intraday action: the S&P 500 ( SPY ) ( SP500 ) -0.5% , the Nasdaq ( COMP.IND ) -0.9% and the Dow ( DJI ) -0.3% .

More on the Bank Crisis:

• First Republic Bank: Why I Am Sticking To My Investment
• First Republic: Be Wary Of People Bearing Gifts
• FDIC inks deal for First Citizens to buy Silicon Valley Bank
• Moody's warns on spillover risk; banks continue emergency borrowing
• First Republic gains after getting $30B in deposits from banks

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