Bank investors better get used to low returns

Posted by & filed under Company Analysis, Economic Analysis, Governments & Regulators, Growth & Valuation, Management Issues.

Description:  Reduced risk has translated into a return on shareholder’s equity that’s more akin to a sleepy regulated utility than a top investment firm.

Source: Fortune.com

Date: 01/20/2012

Link:  http://finance.fortune.cnn.com/2012/01/20/bank-earnings-shareholder-return/?iid=SF_F_Lead

Questions for discussion:

  • Why are bank stock returns expected to be reduced?
  • Do you agree with the explanation?

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