Traditional Wall Street a Changed Animal: Sonders

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June 10 (Bloomberg) -- Liz Ann Sonders, chief investment strategist at Charles Schwab, and Bloomberg’s Josh Green discuss the changing face of Wall Street, the politics of U.S. banks, and why current M&A activity is a good sign of market strength. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

I am not in the city every day but i hear the departure every thursday.

It is extremely quiet on friday.

I am on the capital market side of the business.

You are seeing firms get out of certain lines of business.

Traditional wall street is very very changed.

We go back to 2007. six, seven years into the market.

What is the law here?

Have we legislated our way into a baking quiet?

Are we so safe and cautious now we can't take risk?

What is the wife or why we are going to the hamptons on thursday?

I think a lot of it is muscle memory.

The difference between large bank lending and small bank lending is extraordinary.

Described that.

Large bank lending is growing but not at the pace small bank lending is.

Just looking at that spread i think shows you that large banks are a very different animal.

What you see anecdotally?

You are the social guy, partying far more than i am.

It is not so much what i hear as what i agreed -- what i read.

It really is the goto place for financial analysis.

It is a small bank where the growth is, that is main street america.

In terms of the rankings of individual stocks there is definitely more.

We have more on financial neutrals overall.

Don't think it is going to be the leadership sector in this bull market.

You cannot have a bull market if it is the most lagging of all sectors.

Josh green, senior national correspondent for bloomberg businessweek.

The doj is up to its eyeballs in dealing with the foreign banks and figuring out the sanctions against them.

Is it still favorable amongst washington politicians to hate on banks and the finance industry?

Absolutely.

One of the things you see dominating the washington conversation is the debate over inequality.

Lyrically banks seem to be on the bad side of that issue.

You don't want to talk about weakening or even changing bank regulation because then you're in the pocket of wall street.

We begun to see a lot of the interim republican primary battles and television ads in arkansas.

They are going back and forth saying you are in the pocket of wall street, no, you are in the pocket of wall street.

It goes back to what we saw with tyson yesterday.

Of 1.8 trillion dollars.

Equity and m&a, did that help you stay optimistic on equities?

I have been getting a lot of questions about whether this he'd stop -- this heated up environment is impending doom for the market to if you look at the level of deal so far, either in absolute terms or market cap, we are not at the highs of 2007 or 2000. it can mark the beginning of the end but we first broke records in 1998. we still had two more years to go in the bull market.

It is put on your radar screen.

What are you not seeing in the space of a mende?

What is missing here?

I think the smaller companies, because they tend to be more domestically focused, they are swimming to get that market share back.

I think we are in a manufacturing renaissance right now.

That is happening ground up.

There are less deals going on.

That may be an ok thing because it is becoming cheaper to build them by.

You own the knowledge of what retail is doing.

What is retail actually doing right now?

They are elected bowls -- they are reluctant bowls -- reluctant bulls.

That is why longer-term measure sentiments are ok.

Are you stunned by this?

I am absolutely floored day today about how no one talks about how 17. it is business as usual.

It is.

Never before have we seen neil grossman writing in the hedge fund.

Never before have we seen

This text has been automatically generated. It may not be 100% accurate.

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