Rodge Cohen Interviewed on CNBC’s “The Strategy Session”July 2, 2010
Mr. Cohen was a guest on the July 2 edition of CNBC’s "The Strategy Session." Mr. Cohen discussed his insights into the state of the European financial world, which he said is entering a "critical phase." Specifically, he spoke about the importance of stress tests for European banks. "Once there is credibility, you can raise capital," he told hosts David Faber and Gary Kaminsky, adding that no program did more to "restore confidence in the banking system" in the United States than the stress tests of 2009. He predicted the tests would show that most of Europe’s major financial institutions are strong, while smaller ones continue to struggle. He also said he believes the U.S. Senate will vote yes on legislation to overhaul financial regulation, already approved by the House of Representatives. The overall outcome, he said, will be positive. "We will have safer banking system, we will have a sounder banking system, we will have a better regulatory system," he said. However, Mr. Cohen said he anticipates "the removal of the barrier on paying interest on commercial demand deposits is going to be a big bottom-line negative for a wide number of institutions." He concluded, "you don’t have a great economy, or even a good economy, without a good banking system."