Veteran bank analyst Mike Mayo, now with Wells Fargo Securities, pointed to a host of reasons on why the banking sector is stronger ten years after the 2008 financial crisis.
- Capital is stronger
- Controls are better - today there are Federal Reserve stress tests
- Costs are under control
- Executive compensation is more tied to returns rather than just growth
"Today is much better," Mayo said, when asked to analyze the current state of the banking system.
Still, the business cycle hasn't been eradicated, Mayo said, and he thinks we will have another recession in the future.
"Our firm thinks that we have a couple of more years to go of good economic growth," he added.