This is a rather long interview and there are moments within where the train of thought and pattern of conversation feels awkward. The most important points I heard were:
1. while credit has stabilized and housing prices have stabilized, the nonperforming assets (aged 120d+) of the banks has ballooned to 1.5X the entire writeoffs of all the banks SINCE 2005! chargeoffs should be expected in the 2nd -> 3rd -> 4th Q?
2. expected mortgage demand down another 40% this year - would be 70% from the peak.
3. great discussion around bank reserves.
4. employment will be good next two reporting periods but this will not be sustainable job growth.
5. reputation is everything - Goldman Sachs and Fraud in the same sentence on the front of every media - its a big deal - things will change. Goldman is a buy @ $140/shr.
6. capital standards will be higher - selling assets - more supply - deflation - for those with the dough - a good period lies ahead.
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