KBW CEO Sees Steady Drum Beat of Consolidation for U.S. Banks

The transcript discusses the challenges U.S. banks face in growing revenue organically and the inevitability of consolidation in the banking sector. It highlights that while the big four banks are limited by deposit caps, regional banks like BB&T and SunTrust are likely to merge. The discussion also covers the growth strategies for larger banks, emphasizing the importance of capital management and operating leverage. Regulatory changes, such as the Dodd-Frank Act and the Crapo bill, are also examined for their impact on bank consolidation.

What role does capital management play in the growth of banks?

How has the number of banks in the U.S. changed over the years, and what impact does this have on consolidation?