July 9 (Bloomberg) -- Brad Hintz, the Sanford C. Bernstein & Co. analyst leaving to teach at New York University, said covering the biggest banks has gotten less exciting and he doesn’t expect that to change in the next two years.
“I do not see the mojo coming back to the Street immediately,” Hintz, 64, said today in a Bloomberg Television interview. “I’m actually finding it a little more tedious. These companies are tied up in regulation.”
The biggest banks have been cutting jobs and costs amid lower returns and new regulations that require higher capital levels and limit trading for their own accounts. Companies including JPMorgan Chase & Co. and Citigroup Inc. have warned investors that trading revenue probably fell in the second quarter, which would mark the fifth decline in the past six quarters for the largest Wall Street firms.
Hintz will help teach a course on managing financial institutions at the Stern School of Business, meaning he will continue to follow developments at the banks, he said. While firms are currently going through a transition period, they will find new “venial sins” and new outsized characters will arise, Hintz said.
“Nothing will, in the end, change the culture of Wall Street, which is the fun part,” he said.
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