Top fund manager David Herro says the European debt crisis doesn’t mean investors should avoid European financials. In fact, he says the fear surrounding the crisis has created several bargains among those firms. “We are not believers that the European banking system is trashed for generations,” Herro tells Bloomberg. He says the system does of course face problems, but that several banks have solid businesses and very cheap shares. Herro also talks about some of the banks he’s high on, and explains how he identifies high-quality financials.

[youtube=http://www.youtube.com/watch?v=iVlT2actASY&feature=plcp]