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Brexit is not the end of Wall Street as we know it, Mike Mayo says

Mayo: Comerica's Tuesday meeting should be a watershed event

Life is likely to go on, for Wall Street, regardless of the Brexit vote.

CLSA banking analyst Mike Mayo said he's not sweating the Brexit, and he think Wall Street will fare just fine, even if the recent trend of markets expecting U.K. voters will opt to remain in the European Union comes to fruition later this week.

"As bad as Brexit would be, it's not life-ending," Mayo told CNBC Monday afternoon. However, "it would increase the cost, complexity and friction" for U.S. banks operating overseas, he added.

But banks could have some work to do if U.K. voters opt to leave the EU. U.S. banks, for instance, are expected to shed thousands of employees if the "leave" vote prevails.

Mayo said he expects big banks to relocate staffers to places like Paris and Frankfurt in the event of UK voters favoring Brexit. However, he thinks Wall Street has bigger concerns — like stress test results, which will come over the next two weeks.

Mayo said the greatest uncertainty for banks comes in the qualitative examinations from regulators, which will be revealed next week. He, and others, have said that big banks have bigger issues to tackle than what's happening in the UK. This week, at least, Mayo revealed a positive outlook for Wall Street, as the Federal Reserve is preparing to announce the results from its annual stress tests.

"U.S. bank balance sheets are the strongest they have been in a decade," Mayo said.

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