On January 7, Mr. Cohen discussed the prospects for the banking industry in 2013 on Bloomberg TV's “Money Moves.” “Eyes are very much on Washington,” Mr. Cohen said. “Companies are reluctant to take significant action when there is uncertainty, and the debt debate is a huge uncertainty. I think another area of real uncertainty is what's going to happen in some of the key leadership positions that directly affect the banking community,” Mr. Cohen noted.

Mr. Cohen also commented on the new Basel liquidity proposals. “It's important to distinguish between a basic premise, which is indisputably correct that capital and liquidity requirements were too weak in 2008, and the faulty conclusion that this means that more capital and more liquidity is always better. There is a proper balance.” Mr. Cohen added, “To me, [the regulations are] just an adjustment. Maybe the extension for compliance is more debatable – four years – but as far as the substance, I think Basel was just recognizing what empirical data demonstrates…Already the U.S. banks have made enormous strides in enhancing capital and enhancing their liquidity ratios so this is not a major event for them.”