Steven Schroll.

Following a universe ranging from super-bank Norwest Corp. to little-known gems like Community First Bankshares, Steven Schroll sees oligopolies on the horizon. In his world, bigger may be better.

Even so, he sees a place for smaller players, like TCF Financial Corp. The $5 billion asset thrift has risen six-fold since he first recommended it in 1991.

He sees trading multiples rising to 12 or 13 times earnings, or even higher for better performing banks. "The consistent profitability of the industry will eventually be recognized by the Street," he said.

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