Mike Mayo Sees Policy-Induced Paralysis Stinging Bank Earnings

Wall Street veteran Mike Mayo is sticking to his bullish call for US banks this year. It’s just the on-again, off-again swings of American trade policy of late are going to hurt the group’s earnings in the near term.

The Wells Fargo analyst trimmed his earnings estimates by an average of 4% across the board on Thursday, noting company outlooks would be tricky to establish amid “a degree of paralysis from policy uncertainty.”