KBW's Cannon Says Big Banks Are Fairly Valued

The video discusses the financial performance of Goldman Sachs and Bank of America, highlighting a decline in fixed income trading and interest income. Despite some bright spots, core business areas have disappointed investors. The discussion covers market expectations, bank valuations, and the impact of regulatory changes on bank mergers. Large banks are seen as fairly valued with potential upside, while smaller banks are fully valued. Regulatory changes may accelerate smaller bank mergers.

What was the main reason for the decline in Goldman Sachs' performance in the second quarter?

• Reduction in loan approvals

• Decrease in customer deposits

• Decline in fixed income trading

• Increase in operational costs

What were investors expecting from the banks that led to disappointment?

• Higher loan growth and net interest margin expansion

• Increased customer satisfaction

• More branch openings

• Higher dividend payouts

How have the largest banks performed relative to the financial crisis levels?

• They have recovered to close to pre-crisis levels

• They have declined significantly

• They have remained stagnant

• They have surpassed pre-crisis levels

What is the market capitalization range for smaller banks discussed in the video?

• 1 billion to 10 billion

• 5 billion to 15 billion

• 500 million to 5 billion

• 100 million to 1 billion

What impact are regulatory changes expected to have on bank mergers?

• They will slow down the process

• They will prevent mergers

• They will facilitate faster mergers

• They will have no impact