Banking System, Citi Group, Bank Of America discussed on FT Banking Weekly - Global regulation, fraud case against Barclays, deregulation under Trump

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I think that one versus two year probably not a major issue for anybody know positions take time in in many businesses end in traditional commercial banking businesses it takes while to build up a positions i think that relaxing the parameters of a tasked could potentially be negative and you know the the question that again a tradeoff that people are considering there is how to conduct the test and whether or not to include some of the large capital buffers some larger banks have to include so how that tradeoff gets managed again we will need to see the detail of that for us to be able to react but our basic principle is stressed as he has been uh real contributor to the safety and soundness of the banking system that we see today but wall street doesn't necessarily see it that way the lower the equity of the hundreds on the neck with you which is the higher the right of bonuses they could paint you know it's very clear that some banks are earning over there kosta capital but not many and some really have work to do there and some have been pretty transparent about it i mean if you look at the first quarter results uh citi group and bank of america were still trading slightly below book value of some of the european banks are trading below book value there's a few banks that our treaty above and you know some have been pretty transparent about it to you you know michael corvette chief a city group has said.

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