the-seven-sins-us-banks-still-struggle-with

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, it is not surprising that Mayo, who joined CLSA in March after two years at Deutsche Bank, is still underweight on the sector. He notes that the impact of the seven sins was...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222