The US financial sector has had a rough year and now its time to learn, a top financial analyst has said.
Ameripris is the first major bank to have gone public since the financial crisis.
Its shares are up over 50% in the past three months, making it one of the biggest investors in the sector.
It has a huge global reach with operations in over 150 countries, including a significant presence in Australia, Japan and South Korea.
Analysts have said the rise in its market capitalisation is because it is the only major bank in the world with a clear presence in both the US and Australia.
“I think the biggest thing that’s been driving the stock has been the US market, where it’s a lot cheaper to hold and a lot less risky than in Europe and Japan,” said Mr Howard.
Mr Howard said he was concerned about the lack of diversification in the Australian economy and the lack in the US of an “AmeriPrisil” – the idea that it could be a “global” bank.
“It’s going to be really hard to compete with them in terms of what they can do in terms at the margins, in terms with their cash, in cash flow, in their balance sheets,” he said.
“We need to look at what the future holds and what it’s going as a whole for the US, because we know that we have a lot of work to do.
We have a long way to go in terms a world capitalisation of more than $1 trillion.””
It might seem like a small number of shares to a lot people, but it’s huge for us,” he added.
Australia has been at the centre of the financial crises in the western world, with many banks failing.
Some analysts have suggested that the current financial crisis may be the last time the country will see a major financial institution go public.
The stock had risen as much as 60% in 2016 before plunging last month.