Investors Need to Do Their Credit Work, Says BlackRock's Thiel

The video discusses the evolution of banking regulations over the past decade, highlighting increased equity capital and policy tools for safety. It examines capital ratios, balancing safety with innovation, and investment opportunities in bank capital structures. The focus shifts to improved risk assessment post-financial crisis, emphasizing the importance of credit work and investor sentiment.

What has been a significant change in banks over the last decade?

• They hold about three times more equity capital.

• They hold less equity capital.

• They have fewer policy tools.

• They have become larger.

What is the current weighted average tangible CT ratio at the 6th largest U.S. banks?

• 5.5%

• 7.7%

• 8.3%

• 10.0%

What is a key challenge in determining the appropriate capital ratio for banks?

• Balancing safety with innovation

• Increasing the number of banks

• Reducing the number of regulations

• Eliminating all risks

What has been a focus for investors since the financial crisis?

• Ignoring credit work

• Analyzing individual balance sheets

• Investing in all available products

• Avoiding geographical diversity

What lesson was learned from the Lehman Brothers collapse?

• Investing without analysis is safe

• All banks are equally risky

• Deep investing and credit quality assessment are crucial

• Credit work is unnecessary