New York Community Bancorp (NYSE: NYCB) is a turnaround stock that only the most aggressive investors will want to own. On the other hand, more conservative investors will probably find M&T Bank (NYSE: MTB) a far more appealing option, noting that an aggregate of 13F filings shows that it is a favorite among the world's largest investors. Here's why you might want to avoid New York Community Bancorp and, instead, buy M&T Bank, like the so-called "smart money" is doing.

When interest rates rose, banks could initially charge higher rates for loans and earn more money. But then there was increasing competition for customer cash, which forced banks to raise the interest they offered on banking products (like bank accounts, CDs, and checking accounts). In other words, the basic operation of banks got harder. On top of that, higher rates increased the risk of default among borrowers.

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Source Fool.com