Friday, January 28, 2011

Citigroup (NYSE:C), JPMorgan (NYSE:JPM) Still Attractive to Goldman (NYSE:GS)

Goldman Sachs (NYSE:GS) noted recently in a report that Citigroup (NYSE:C) and JPMorgan (NYSE:JPM) remain their two top banking picks.

Concerning large cap banks in general, Goldman said, "We still believe that capital returns, clarity over regulation and continued growth in book values should support large cap banks in 2011."

For Citigroup, Goldman likes their exposure to emerging growth markets and their valuation.

JPMorgan gets their support from Goldman on the release of capital set aside for private label mortgages, which they see pushing the share price of JPMorgan up. Private label mortgages are those not guaranteed by Freddie Mac or Fannie Mae. JPMorgan set aside capital to protect themselves in that segment.

Citigroup was trading at $4.78, falling $0.05, or 0.93 percent, as of 11:15 AM EST. JPMorgan was trading at $45.20, up $0.10, or 0.22 percent.

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