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Future of Banking Looks Dark--Why That's a Problem

The stock market... thinks banks are barely able to earn more than what investors charge them for funds. The reasons are complex but boil down to this: rock-bottom or negative interest rates, tougher regulation and weak economic growth have severely squeezed bank profitability....The point is illustrated well by a recent study by Natasha Sarin and former Treasury Secretary Larry Summers, both of Harvard University, and presented at the Brookings Institution.
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