Citigroup CEO Says Bank Investors to Get Steadier, Lower Returns
This article is for subscribers only.
Banks will probably generate more reliable profits, though not at the high levels preceding 2008’s crisis, as firms adapt to new rules and pressure to cut risk, Citigroup Inc. Chief Executive Officer Michael Corbat said.
“Investors’ expectations today should be lower volatility of earnings and steadier returns, albeit probably at lower levels than we’ve seen in history,” Corbat said yesterday at an event at the New York University Stern School of Business. The Dodd-Frank Act, which sought to overhaul U.S. regulation of the industry after the financial crisis, has reduced the chance that a large bank will fail or need taxpayer support, he said.