Here too is the Sept 28-dated report. Download Sept 28 MS report on Global Banks.

The important points of the MS study are:

Deep value picks " high yield, positive earnings revisions, fundamental backing: The key question really is: ‘Where are the most attractively valued banks?' In order to answer this question, we have looked at earnings and pre-provision multiples, but to guard against ‘value traps' we have added dividend yield, earnings revisions in the past three months and our bottom-up fundamental view to the filters and have come out with a list of Top 10 Value Picks globally. We have also run a historical analysis to validate the thesis.

Stocks in this ‘value' list trade at 9x 2007E earnings, offer a 4.7% yield, have positive earnings revisions of 4% in past three months and are all rated positively by our team. Most stocks in this list are from Europe, with a few from emerging markets (Korea, Brazil and Turkey); none are from the US or Japan.

Did you catch the operative words;"most are from Europe; none are from the US or Japan."