Say Whaaaaattt? Yup, that is what Randy Warren, chief investment officer of Warren Financial Service says! He expects banks to do very well this year saying, “2011 could be the year of the banks.”

He anticipates Banks will step up their lending this year, which in turn will drive up their earnings growth. His investment firm will be “doubling and tripling down on our positions,” said Warren.

And early this week, like the snow from last week, we will have a blizzard storm of earnings reports coming from corporate America. We will hear from Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase, followed by Wells Fargo mid week and Morgan Stanley will finish up the rear.

Banks are also beginning to free up their reserves, money set aside to cover potential losses. JPMorgan released $2B in reserves they had ear-marked to cover credit card losses.

Last Friday, in Larry Hagmans “JR” style, JPMorgan’s brass hinted of a possibility of potential dividend hikes. You might imagine it has some folks raising their eyebrows and shifting their feet with some anticipation. It will be interesting to hear their management commentary this week.

The news is positive for our economy even if it has a bittersweet taste.