Taps Coogan – November 2nd, 2020

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David Roche, Independent Strategy President recently spoke with CNBC about the outlook for large international banks, describing it as a “doomsday” scenario.

Some excerpts from David Roche:

“I think it is a terrible business model and I see absolutely no reason to own it except that, of course, when the long end of the US bond market goes up and the short end does not, people say or think that banks will make a turn out of this by intermediating between the maturities of short term debt and long term debt… But in reality you have described a doomsday scenario for banks. They are now almost public utilities. They are tools of public policy as governments increasingly interfere with central banks and central banks increasingly interfere with credit…”

There is more to the interview, so enjoy it above.

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