PSigma's Mott: Banks will never be the same again

PSigma's income manager Bill Mott has warned banks will never be able to return to the pre-crisis days of stellar profits.

Mott (pictured) said although the second tranche of the European Central Bank's LTRO programme has eliminated the small probability of UK banks collapsing, a proportion of the money was spent on strengthening the sovereign bond market as opposed to supporting struggling European banks. "The LTRO should have meant even the most useless bank should not be able to go bust for the next three years," said Mott. "Unfortunately, a lot of the money was used to prop up struggling domestic sovereign bonds, which increases the mutual dependency. It is like putting two drowning men together and h...