(Bloomberg) -- Atlas Merchant Capital Chief Executive Officer Bob Diamond said President-elect Donald Trump is likely to usher in an era of even lighter-touch regulation after less-stringent rules have already helped US banks compete against their UK rivals.
“It’s pretty clear this administration will be less aggressive on regulation — I think for the big banks we’ll continue to see strong performance,” Diamond said in a Bloomberg Television interview Tuesday. “It’s been very beneficial to the US banks. The UK banks are the opposite extreme.”
UK regulators have been aggressive around higher capital levels and clamping down on risk for British banks, which has hampered their growth, including outside their home region, said Diamond, who resigned as CEO of London-based Barclays Plc in 2012. “Where are the UK banks now relative to the US banks? Nowhere near.”
US regional banks — which Diamond said are providing better services than their larger rivals to smaller businesses and family-run firms — are the “great investment” right now, he said. Consolidation will be necessary so smaller lenders can survive, Diamond said, and the new administration is likely to be more open to such mergers.
“For us, invest in those really strong regional banks, give them the capital to beef up the capital ratios, whether it’s the loan portfolio or the interest-rate portfolio,” he said. “Most importantly, give them guidance, give them the capital so that they can acquire the community banks that are too small to succeed.”
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