Street Talk · 2026-02-13 · 35 min
After years of trading at the steepest discount in the broader market - dead last among all major sectors - the banking industry is finally positioned to narrow that gap, according to KBW CEO Tom Michaud. In the episode, Michaud said that the best fundamental environment in years, historic levels of excess capital, a once in generational change in the regulatory environment and rebounding M&A activity should support stronger valuations for regional banks in 2026. The executive also shared his takeaways from the annual Acquire or Be Acquire conference and his outlook for bank deal activity. He further discussed why scale matters and the impact of shareholder activism in the banking sector.
Ep. 150 - 12 words for community banks to live by76 / 100Ep. 149 - Dr. George Friedman sees old alliance as obsolete, new bilateral order as U.S. shifts from Europe to ChinaEp. 148 - Banks, AI and the not so "hidden" exposure to private creditEp. 146 - Strong fundamentals, increasing M&A activity set the table for small cap bank stocksEp. 145 - Bank stocks are divorced from fundamentals