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Breakingviews – Guest view: Why bank investors have it the hardest
Breakingviews - Guest view: Why bank investors have it the hardest,Bank stocks were supposed to be boring after 2008: more capital, more compliance, less risk of a trading blowup. The idea was that shareholders would accept lower returns on equity in return for a steadier and more predictable business model. But 2023 has undermined that idealistic vision. One implication is that it’s perilous to buy shares in large, complex lenders – even if on the surface they look cheap.

Breakingviews – Guest view: Why bank investors have it the hardest

Bank stocks were supposed to be boring after 2008: more capital, more compliance, less risk of a trading blowup. The idea was that shareholders would accept lower returns on equity in return for a steadier and more predictable business model. But 2023 has undermined that idealistic vision. One implication is that it’s perilous to buy shares in large, complex lenders – even if on the surface they look cheap.