The bank rally is getting, long in the tooth, and it's time to start moving back to the higher quality names that have a "habit of achievement," said J. Richard Fredericks, an analyst with Montgomery Securities in San Francisco.

Mr. Fredericks, who has been a bank analyst for 23 years, has sizable concerns about the industry's prospects. He fears hanks are developing into "money mortuaries" as they lose ground to nonbank competitors that lend money and mutual funds 4hat have snapped up the best depositors.

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