“The bevy of regulation since the 2008 financial crisis has weakened the banking sector to the point that another meltdown is inevitable, says private equity star J. Christopher Flowers, CEO of J.C. Flowers.
“All the stuff that has happened, and all the rules we’ve introduced have depressed profitability. And that is a real vulnerability,” he tells the Financial Times. “Nobody is going to invest in an industry with returns of 5 percent.”
While Flowers has invested in banks in the United States, United Kingdom, Japan, Germany and the Netherlands, he notes, regulators are engaged in a fool’s errand in trying to eliminate risk from the banking industry.
“How do you make something that lends money at risk a utility?” Flowers asks rhetorically…..”Twitter