-- He thinks that the number of investment banks will be smaller going forward, given the new regulatory environment in which they will be operating.
-- He thinks that is a good strategy as that will free up cash to be returned to shareholders.
-- Fixed income business has grown by leaps and bounds in the last decade but will be a much smaller business going forward at all the investment banks.
-- It is a very tough operating environment for investment banking as people sit on tons of cash and refuse to trade.
-- Still, financials are very cheap at this point. Some of these stocks are trading at all time lows.
Credit and Source: Bloomberg
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