“The removal of the barrier on paying interest on commercial demand deposits is going to be a big bottom-line negative for a wide number of institutions.”
That quote is not from a Wall Street analyst, but from one of the wisest and most connected players in our financial system: H. Rodgin Cohen, the senior Chairman of the law firm Sullivan and Cromwell, who was my guest today on The Strategy Session.
I asked Cohen about the impact of new financial regulations (assuming the bill is passed by the Senate) on regional banks, which prompted him to issue that warning about earnings.
When Cohen, who has advised on more bank mergers than any single human being in financial history, shares an insight like that, it is wise to pay attention.
In this case, the focus would seem to be on the much overlooked impact of financial regulation, not on the nation’s biggest institutions, but on those who did not have a voice in the legislative process.
For more on H. Rodgin Cohen, read this post:
"The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.