"We believe that JPM has the strongest balance sheet versus peers in our coverage. We think JPM will be the first of its peers to be able to lower its reserve build and perhaps release reserves in the first half of 2010. Despite a recent sharp rise in the share price, we think JPM offers further upside potential as investors are apt to value the company on its normalized earnings potential," the analysts said. Regarding State Street, the S&P staff said, "State Street's shares have pulled back roughly 5% in the past two days and we think they are more attractively valued. With STT recently transferring its conduits onto its books, we think one major overhang is behind the company. Although concerns still remain over STT's securities portfolio it has held up well over the last few quarters and we do not expect major writedowns."