Gross Says Banks ‘Permanently Damaged’ as Credit Expansion Ends

Financial cos. will be hard-pressed to meet long-term growth expectations as decades of credit expansion come to an end and central-bank policies and tighter regulations squeeze profits, writes Janus’s Bill Gross in monthly outlook.

  • Citigroup, Bank of America, Credit Suisse, Deutsche Bank, Goldman Sachs trading far below their pre-crisis highs as credit growth that has fueled global economic expansion appears to near its end
  • Banking “either a screaming sector ready to be bought or a permanently damaged victim of write-offs, tighter regulation and significantly lower future margins”
  • Selloff in global bank stocks shows investors recognize

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