Mike Mayo Sees 'Gut Punch' for Biggest Banks in Basel III Endgame

The video discusses the impact of Basel 3 and FDIC regulations on banks, highlighting the performance of large banks compared to regional ones. It explores the Basel 3 end game, its implications for competition and cyclicality, and the associated regulatory costs and risks. The video concludes with a debate on banking risks, focusing on credit, market, and operational risks.

What has been the effect of increased regulation on large banks compared to midsize banks?

• Midsize banks have outperformed large banks.

• Large banks have become less resilient.

• Midsize banks have seen more oversight than large banks.

• Large banks have become more resilient and outperformed.

What is one of the expected outcomes of the Basel 3 end game?

• Increased complexity and competition.

• Reduced cyclicality in the banking sector.

• Simplified regulatory requirements.

• Decreased competition among banks.

What is a major concern for banks regarding the new regulations?

• The complexity and potential costs involved.

• The decrease in market risk.

• The lack of potential costs.

• The simplicity of the new rules.

What is the main focus of the debate between the banking industry and regulators?

• The elimination of operational risk.

• The balance between resilience and cost.

• The reduction of credit risk.

• The need for less regulation.

Which category of risk is considered a 'head scratcher' due to recent changes?

• Market risk

• Interest rate risk

• Credit risk

• Liquidity risk