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I’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 broker
by elliekelly 7y ago
I’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]