So, what does that future look like? There's a possibility of more mergers with regional banks, Rowan says, as weaker institutions "get taken out by the strong players," but "we're not going to know for a while." Most important in the regional bank business model is whether their deposits are stable, Rowan says, admitting he's "not so sure."
JPMorgan (JPM) CEO Jamie Dimon told analysts on a call the market crisis surrounding banks "is over." But that doesn't mean the market is out of the woods quite yet. Rowan is wary of commercial real estate stress that could "give some rise to round two." And with the Fed expected to hike rates higher this week, economic conditions are only tightening in the foreseeable future.
Key video moments:
00:00:26 Bank failures were "totally predictable"
00:00:53 Regional banks' cost of doing business is up
00:01:30 Weak players are getting taken out by strong players
00:01:40 Watch out for commercial real estate
Disclosure: Apollo Global Management is the parent company of Yahoo Finance.
