If Stock Prices Matter, Banks Might Want to Be Utilities: Chart

Bankers say overzealous regulators are treating them like utilities. Just for the record, utility stock returns beat banks by 63 percentage points since 2008. Analyst Mike Mayo at CLSA Ltd. said de-risking and deleveraging made earnings less volatile, and adjusted yields already top utilities. His concern, however, is that the political pendulum has swung too far toward punishing lenders: “At some point, the politicians will gain more votes again by using banks for facilitating economic growth.”

To continue reading this article you must be a Bloomberg Professional Service Subscriber.