USB: Stimulating A Bank War In The Midwest?

U.S. Bancorp (NYSE:USB) is aggressively tackling expenses and growing non traditional bank revenues, according to a recent research report from Dick Bove of Rafferty Capital Markets. And what the bank is doing could “stimulate a bank war in the Midwest,” he said. “It may also lower returns in the near term eve though it is exactly the right strategy.”

Two pronged attempt to improve stock performance

Bove noted an aggressive cost cutting program being undertaken at the bank but, “the move to aggressively cut expenses is being driven, in my view, because the bank is having a great deal of difficulty in generating revenues,” he wrote in his research report....