NEW YORK (Reuters) - Laurence Fink, chairman and chief executive officer of BlackRock Inc, said on Wednesday that he is bullish on U.S. banks and that investors should view volatility in Europe as a buying opportunity.
“They’re in a very good position,” Fink told CNBC.
Fink runs the world’s largest money manager with $3.56 trillion in assets as of June 30.
BlackRock is the second-largest shareholder in Citigroup Inc (C.N), whose chief executive officer Vikram Pandit unexpectedly resigned on Tuesday.
“Under Vikram’s leadership, the organization has stabilized. Under his leadership the organization is moving forward. Yes, I’m not blind to the missteps,” Fink said.
“Citibank is in particularly good shape. Most of their balance sheet problems are way behind them ... their brand worldwide is one of the best worldwide,” Fink said.
He said investors should not be discouraged by volatility in Europe because the outlook for the debt-ridden continent is positive, although a resolution to its crisis could take seven years.
“And for those who can handle the volatility, I say when we have dips in Europe you buy because I think the outcome will be a better Europe,” Fink said.
He added that trends were positive and competitiveness in the euro zone was improving.
Fink also said the looming “fiscal cliff” of tax hikes and spending cuts at the start of next year were a “global worry” that threatened to tip the United States into a recession if not properly addressed.
Reporting by Sam Forgione