# Prof. Roy Smith on the outlook for big banks

1 Faculty News July 20, 2012 ![Bloomberg logo](/sites/default/files/styles/246w/public/assets/images/bloomberg192x144.jpg?itok=yV529lwz)>

Excerpt from [Bloomberg](http://www.bloomberg.com/news/2012-07-20/wall-street-seeks-patience-after-worst-1st-half-since-08.html) -- "Most of the banks have failed since 2009 to earn a return that exceeds their cost of capital, said [Roy Smith](http://www.stern.nyu.edu/faculty/bio/roy-smith), a finance professor at New York University’s Stern School of Business and a former Goldman Sachs partner. The impact of new capital requirements and legislation such as the 2010 Dodd-Frank Act is having a more profound effect on profitability than managements seem willing to acknowledge, he said."

[Read more](http://www.bloomberg.com/news/2012-07-20/wall-street-seeks-patience-after-worst-1st-half-since-08.html)