Mayo said in 1999 to sell banks stocks and has not wavered from that call, which cost him his job at Credit Suisse and friends on the Street. That year he said banks relied too much on asset-backed securities, and that if home prices fell we would see "a self-fulfilling prophecy of lower home prices and lower collateral, not to mention unique political fallout."
Now he thinks financial institution mergers are likely to come back over the next five years. "There are still too many banks and not enough revenue opportunities."
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