by Daniel Xiao Wang

Created on: March 16, 2008

Like most decisions related to personal finance, the wisdom of buying bank shares through this sub-prime lending crises depends. Generally speaking, bank stocks are on sale, financials have hit lows that are not warranted by their financial conditions.

That does not mean, however, that every financial currently on sale is a good buy. Simply because share prices are depressed is not an indication of a good buy. With many larger banks looking overseas for capital infusions particular attention needs to be paid to the overall soundness of the company.

With the entire industry suffering from the sub-prime lending crisis certain opportunities naturally arise. Some banks that were barely affected by the sub-prime lending crisis have seen depression in their stock price.

These are prime to buy, excellent and solid financials currently on sale. Among these bank stocks is SunTrust Bank who recently actually increased its dividend by 5% when other banks are lowering or eliminating their dividends.

SunTrust bank has also been expanding while other banks are suffering, purchasing a few small banks within its footprint and expanding its trust services. The stock shows great upward potential from a bank being negatively impacted solely for being a financial in a time of declining financials.

Bank United is another bank that has not been affected greatly from the sub-prime lending crisis. It is another excellent buy in this market.

Bank of America is under a great deal of strain. This is one financial I would avoid for the time being, although the stock is on sale a prudent and savvy investor will consider this purchase carefully.

Bank of America was forced into an awkward position with Countrywide that resulted in Bank of America's acquisition of a struggling company. Bank of America has also experienced problems in its investment division. It had to divulge a large piece of its investment services due to a substantial lack in performance from the line of business.

Then recall that several large banks, like Citigroup, Merril Lynch, and Bear Stearns have had to go looking for money overseas.

Now is an excellent time to buy financials that are on sale. Exercise due diligence however and make sure that the financial you invest in is not depressed for good reason.

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