joining me now is dick bove, famed bank analyst at rock securities. since greece news is better, we're not going have the global default and meltdown. banks did well. apart from that, will banks continue to rally? that's what i want to know. >> i think it is very leakly because if you take a look at the positive side which is starting to overwhelm the negative side. they're up 10.5% year over year. mortgage refinancing is increasing. there's been a surge in auto lending. there's been an increase in what we call guarantee loans which are fha guarantee loans and student loans. so we're seeing a big increase in lending which is where the banks make their biggest profit. >> i want to get in with some of the overview stuff in a minute, but i want to ask you in your best bets. update us on your best bets, dick? >> i think bank of motorcycle has become a compelling vibe, because even if the stock were to triple from the current level it would go up from 8 to 24, that's still less than half of what it was when it was at 55 at the peak of the last cycle. if yo

here is dick bove sounding off earlier on cnbc. >> every american should stop making his payments onsend a letter into the attorney general in his state and say i qualify to have my principle reduced because i'm not going to make anymore payments on my house. >> and picture this, it's kind of sad, kodak is getting out of cameras. the bankrupt company says it's going to stop producing digital cameras and going to focus on printing instead. the move is expected to save the company more than $100 million a year. and oracle internet sky high deal in the cloud. the company announcing plans to buy business software maker for $1.9 billion. that comes after oracle's rival stuck a $3 billion deal for a similar firm. of course this is, i believe, according to s&p capital iq data, herb and sully, the purchase of $1.9 billion purchase now ranks as the largest u.s. tick m&a deal to date in 2012. to date, we're only one month in. but there you go. pretty big deal. >> it is. and it follows up -- >> everyone wants to control the cloud. >> that's right. they'll drive each other into the ground in pri

joining us on the news line is dick bove. at more do you want to know from jamie dimon today? >> well, frankly, i think in the connotation with the cfo they laid out the key things that we want to know. they indicated that they think that the earnings power of the company is roughly 33% above what the current earnings were or what the earnings were in 2011 and they suggested that they would pay out 30% of that earnings power at some point in the future which means that the dividend should get up to something on the order of about 70 from -- at the present time. the company has basically, therefore, laid out where they are going to go and what we will see as investors and analysts. are we going to get there. and our belief is that they have a strong enough management team that will reach the goals that they've laid out today. >> i think you've got a buy rating on the stock, a $40 price stock and the stock is bumping up against that. does that mean it won't go very much farther? >> i don't think so. i think we're seeing an enorm

let's bring in the man behind that, dick bove joins us from tampa, florida. $40 billion, dick? a big number, simon. the reason i think it's appalling is because let's assume that you and i buy houses side by side that are exactly the same, we pay the exact same amount of money to buy those houses, you put down $40,000, i put down $5,000, you keep making your payments on a regular basis so you've knocked down the principal another $10,000, i put down -- i'm sorry, i pay virtually nothing and the prices of the houses both houses being exactly the same drop by the same amount 20%, well, i still got equity -- i'm sorry, you still have equity in that house because you've been making your payments. i have no equity in that house, i'm under water because i made no payments and i didn't put any money down. so the government says you who have made your payments, saved the money for the down payment, you get nothing. me, because i made no payments because i didn't put hardly any money down, i get to see the value of my loan taken down. >> let me -- let me -- a lot of people will have gre