Five Ways Brexit Will Impact U.S. Banks

The video discusses the investability of European banks like RBS and Barclays post-Brexit, highlighting five direct impacts on earnings. It contrasts this with US banks, noting a challenging operating environment due to low interest rates. The discussion also covers the stress tests for US banks, focusing on Bank of America and Citibank, and their capital return strategies.

What is one of the direct impacts of Brexit on banks as discussed in the video?

• Growth in M&A activities

• Immediate risk-off trade

• Increase in interest rates

• Expansion of equity capital markets

Why is the current operating environment challenging for U.S. banks?

• High interest rates

• Strong economic growth

• Low interest rates and weak economy

• Increased regulatory capital

What factor is mentioned as influencing the equity prices of banks?

• Amount of capital returned to shareholders

• Number of new branches opened

• Level of customer satisfaction

• Diversity of investment portfolios

Which two banks are highlighted in the discussion about stress tests?

• HSBC and Deutsche Bank

• Goldman Sachs and Morgan Stanley

• Bank of America and Citibank

• Wells Fargo and JPMorgan

What is the potential outcome for Citibank in terms of capital returns?

• Drop to zero

• Increase to 9 or 10 billion

• Decrease to 1 billion

• Remain at 6 billion