The Commonwealth Bank of Australia (ASX: CBA) share price has recovered somewhat to $78.66 after the market has digested the AUSTRAC news of alleged money laundering problems.
Commonwealth Bank is the epitome of an Australian blue-chip share. It has a long history and a large market share, alongside a few other titans in the industry.
It has a varied source of income with loans, CommSec, financial planning and other areas.
However, it has seen some parts of its business come under pressure and criticism in recent times.
The financial planning arm has had a scandal. CommInsure has had a problem. There's a growing movement against Dollarmites due to its marketing nature. Now Commonwealth's ATMs were apparently not following reporting rules.
All of this negativity has led to the share price losing its premium to the other big banks.
Does this mean it's a buy?
Short-term problems usually make for a good time to buy shares for the long-term.
Commonwealth's share price certainly is more attractive now that it's $78.66 rather than above $85.
However, I believe that the Aussie banks could be about to go through a rough patch. High levels of debt and rising interest rates are going to hurt Commonwealth's cyclically-low bad debt.
I also think credit growth is going to materially slow as investors lose their appetite when they see property prices are no longer going up.
In the short-term the price may be more attractive, but over the next year or two I think the price could dip below $70 if not lower.
Foolish takeaway
If you think you're significantly underweight on Commonwealth Bank shares then now could be a little opportunity to add to your portfolio. However, I wouldn't be buying until I see the economy faltering.
