Cohen Says Banking System Today Is 'Very Strong'

The transcript discusses the current strength of the banking system, highlighting the results of recent stress tests and the assumptions used in these tests. It evaluates the performance of banks, particularly Deutsche Bank, and predicts the future of stress tests and banking regulations. The conversation also addresses risks in less regulated financial areas and explores the factors influencing bank mergers and consolidation.

What was one of the key assumptions made in the recent stress tests?

• A decrease in credit card losses to 10%

• A decrease in unemployment rate to 5%

• A rise in unemployment rate to 10%

• An increase in GDP by 5%

What did Sheila Bair suggest about the stress tests?

• They should be eliminated

• They should become tougher

• They should be easier to pass

• They should remain the same

Which bank was highlighted for its efforts to pass the qualitative side of the stress tests?

• Wells Fargo

• Bank of America

• HSBC

• Deutsche Bank

What areas are considered risky due to less regulation?

• Nonbank financials and virtual currencies

• Retail businesses

• Real estate

• Traditional banks

What is a major reason for the lack of bank mergers despite the advantages of scale?

• Concerns over tangible book value dilution

• Regulatory hurdles

• Lack of competition

• High interest rates