. >> susie: joining us now with more analysis, richard bove, veteran banking analyst at rochdale securities. >> suzanne: let's get right to the $3 million settle -- $33 settle., should it have been more? >> i don't think it should have been more. i don't think the government should tell a company to do something then fine them after they do it. but $33 million is very small relative to the $5.8 billion in bonuses that were paid. i'd say just a slap on the wrist. it wasn't a meaningful statement by the government. >> shareholders have been very angry about this whole b of a/merrill lynch merger, should they be satisfied been this news? >> you can't be satisfied if the sec fines your company. but i think they have to feel some degree of relief that there ll be no further activity related to this situation. that it will not hurt their stock price, will not hurt their company. they can move on and forget this for the moment. >> do you think new york attorney general will move on, they have been grilling bank of america overall of these developments for months now. is it over? is this chapter ov

joining us, richard bove, financial strategist, rochdale securities and chris whalen, senior vp at institutionaltistic. dick bove, start with you, learning now banks are not too big to fail and might this be good news rather than such big news? >> i think there are three issues, certainly a lot of banks no to the big to fail and a lot of them will fail, three issues tough look at. number one, a lot of small banks that will fail, somewhere between, we think, 150 to 200. number two, and this is much more important, the cost of covering those failures is going to be extraordinarily high for the healthy banks. in other words, the healthy banks may have to set aside 25% of their earnings next year to pay for the failed banks. and that's going to cause the earnings to be less than people expect. third issue is who is going to buy the failed banks? and i think that we have run out of names in the united states. u.s. bank corps would be one company but i think most of the buys are going to come from foreign banks or private equity firms. >> chris that is one of the big issues right now, you look at what

we have a really big pop to the upside after banking analyst richard bove a regular on cnbc said some are betting the stock will triple in three years time. and going up 21% after the newly reappointed ceo says they may be able to pay the boost value to shareholders. obviously, investors liking that news. they do like a little bit of oo oomp. we've been getting mixed news from retailers. hormel foods, and the gap all be beating street estimates. sears reporting an unexpected loss and sent stocks down by quite a lot actually. 12% at one point. it is dimming investor hopes the billi billionaire investor eddie lampert can turn this retailers around. and currently the tech, software maker oracle getting a price tag of $1.4 billion. >> i have to imagine it was the short squeeze and some people were betting the stock would go down. there seems to be a feel good in the financials and we did get good economic data in the manufacturing numbers and that off seset some negative views o housing and delinquency and everyone focused on the manufacturing data that came in at a good reading. >> thank

richard bove at rochdale securities saying this is a triple.into citi once again here. >> a lot of people have been saying the government wants to get out and people know that. so somebody's looking to buy that share knowing that there's going to be something going on. but with all that good economic news, 50 points? we've prespent our optimism, i think. >> i'll take. dow industrials at 9330. not bad. we see the nasdaq not too bad. at the