Tom Michaud, Keefe, Bruyette & Woods CEO, discusses the strong state of US banks after the Federal Reserve stress test. Topics include bank capitalization, regional bank challenges, and the impact of interest rates. The podcast also explores bank exposure, market liquidity, and the rise of passive investing in financial markets.
US banks in good shape post stress test due to strong capitalization.
Regional banks struggle with high exposure to commercial real estate.
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The results of the Federal Reserve’s stress test Wednesday are likely to show that US banks are in “very, very good shape,” Keefe, Bruyette & Woods Chief Executive Officer Tom Michaud said Monday in a Bloomberg Surveillance Television interview. The banking industry is “very well capitalized” given the challenges it’s had, he said, with only a few regional banks trailing behind due to high commercial real estate exposure