Some traders are avoiding the energy space after WTI crude broke below $30 on Tuesday, but one analyst believes that the banks are actually insulated from the underperformance of the energy space.
Top banking analyst Mike Mayo of CLSA said on CNBC’s “Fast Money Halftime Report” that he doesn’t think that banks have significant exposure to the problems in energy.
“Non-banks have originated only a quarter of [large oil-and-gas loans], but have two-thirds of the criticized assets,” Mayo said. “The problems in oil and gas are outside of the banking industry. In this case, don’t blame the banks.”