Reuters Insider: U.S. banks must wake up and face reality, CLSA’s Mayo says
By Chris ClairU.S. banks must acknowledge their stark outlook, says CLSA’s Mike Mayo, who predicts low yields and high expenses will usher in the worst decade of revenue growth since the Great Depression.
“It’s when banks don’t recognize the reality and try to grow faster than the natural rate of growth in the environment, that’s when they get into trouble,” Mayo says. “So it doesn’t have to be life-threatening that banks don’t have very good revenue opportunities, but in response banks need to show risk discipline and also control their costs.”
