The seven sins US banks still struggle with

Mike Mayo issues his first report at CLSA, highlighting legacy balance sheet issues faced by US banks, and suggests 11 banks will continue to underperform.

In his first report on US banks at CLSA, Mike Mayo continues to be bearish on the sector, identifying seven deadly sins of banking that will remain a drag on bank performance.

Greedy loan growth, gluttony of real estate, lust for high-yields, sloth-like risk management, pride of low capital, envy of exotic fees and anger of regulators are the sins Mayo highlights in his report. These were the actions whereby banks increased risks to generate revenues.

Against this backdrop,...

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