4 ms·
Goldman Sachs's return on equity used to average 20-30% before the crisis. Now a decade after the crisis they're glad to be doing more than 10%. https://i.imgu
by Despegar 7y ago
Goldman Sachs's return on equity used to average 20-30% before the crisis. Now a decade after the crisis they're glad to be doing more than 10%.
https://i.imgur.com/gtE05WX.png https://i.imgur.com/gtE05WX.png
- elliekelly 7y agoI’m on mobile so I can’t read the numbers on the excel screenshot you provided but the historic high return on average equity for banks[1] (not including brokerage) was 16.29% in 1999. At last measure it was 11.85%. Dodd-Frank was merely a speed bump. The vast majority of banks have long since recovered from the crisis. [1] https://fred.stlouisfed.org/series/USROE https://fred.stlouisfed.org/series/USROE
- Despegar 7y agoThat's not a good chart for banks. Their cost of capital is 8-10%, doing 11 or 12% is pretty shitty compared to the pre-crisis era. And the smaller community banks have less onerous regulations than the big ones. Banks have to be much more capitalized and have less leverage because of Dodd-Frank. That's why the return on equity is mediocre.
- tomrod 7y agoWhile I'm not personally keen on him, Trump's admin rolled back CCAR to every 4 years, for small book every 6. Expect lower regulatory costs.
- deleted 7y ago[deleted]
- natal59 7y agoWhats the app you used to get so much history
- Despegar 7y agoFactSet