Just two weeks ago, few Americans questioned whether their deposits in banks were secure. Keith McCullough says the government won’t let the industry off easy for that loss of trust.
“It’s not like you have an administration or policymakers — in particular Elizabeth Warren — that’s allowing for these banks to just take a little slap on the wrist and say, ‘I’m going to make all your deposits safe, and let you go back to doing what you were doing,’” explains Hedgeye’s Risk Manager in Chief on this clip from The Call @ Hedgeye.
In response to heightened government scrutiny, banks, in turn, will likely become more stringent themselves when it comes to underwriting and lending.
“Think about it: you think as a result of this, regulators will be loosening restrictions and regulations on the banks, from either a liquidity or a capital standpoint? You think banks will expect that to be the outcome? No, it’s the exact opposite,” explains Financials analyst Josh Steiner.