Baby boomers may be the best thing in years for some bank stock prices. At ABA's Wealth Management and Trust Conference this spring, analyst Gerard Cassidy made the case that the market rewards fee-based banks--banks such as Bank of New York/Mellon that emphasize asset management, trust, custody, and other fiduciary services--with higher price/earnings multiples than traditional spread lenders.
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Cassidy, bank analyst and managing director for RBC Capital Markets, explained how fee-based banks have latched onto the changing demographics particularly well. In a nutshell, as baby boomers move into their 60s in enormous numbers, the wealth they have ...