In this episode of the Eisman Playbook, host Steve Eisman is joined by banking experts Charlie Peabody and Brent Erensel from the boutique firm Portales Partners. Together, they explore the transformation of the banking industry from the pre-Great Financial Crisis era to the present. They discuss the emergence of bank stocks following the dot-com bust, the impact of the Great Financial Crisis, and the subsequent regulatory changes, including Dodd-Frank and CECL accounting. The conversation also touches on private equity and credit markets, exploring the potential risks they pose to the financial system. Finally, the hosts reflect on recent earnings seasons, discuss the potential effects of recessions, and consider the future of bank mergers and acquisitions.

About my guests:

Brent Erensel - MD Equity Sales - Portales Partners

00:00 Introduction and Market Overview
00:18 Meet the Guests: Charlie Peabody and Brent Erensel
01:05 The Pre-Financial Crisis Banking Landscape
02:48 Post-Crisis Regulations and Their Impact
03:47 The Rise of Private Capital
04:38 Challenges in Regulating Non-Bank Financial Institutions
08:39 The Future of Bank Stocks
11:45 Historical Parallels: The Panic of 1907
15:50 Liquidity Concerns in Private Equity
22:38 Key Metrics for Bank Investing
23:31 Belief in the Book Value of Banks
23:58 Introduction to CECL Accounting
25:43 Impact of CECL on Bank Reserves
28:26 Bank Earnings and Recession Resilience
31:53 Market Sentiment and Bank Stock Recommendations
42:38 Regulatory Environment and Bank Mergers
49:49 Conclusion and Final Thoughts

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Episode Production Credits

Producer: ⁠Collier Landry⁠

Producer & Publicity: ⁠Steven Cohen, Next Horizon Media⁠

Post-Production Services by Don’t Touch My Radio

Disclaimer: The financial opinions expressed are for information purposes only. The opinions expressed by the hosts and participants are not an attempt to influence specific trading behavior, investments, or strategies. Past performance does not necessarily predict future outcomes. No specific results or profits are assured when relying on this content.

Before making any investment or trade, evaluate its suitability for your circumstances and consider consulting your own financial or investment advisor. The financial products discussed in ‘The Eisman Playbook' carry a high level of risk and may not be appropriate for many investors. If you have uncertainties, it's advisable to seek professional advice. Remember that trading involves a risk to your capital, so only invest money you can afford to lose. Derivatives are unsuitable for all investors and involve the risk of losing more than the amount originally deposited and any profit you might have made. This communication is not a recommendation or offer to buy, sell, or retain any specific investment or service.

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Episode 243: Into the Wild Blue Yonder with Air Lease Corp. Chairman Steve Hazy