JPMorgan Asset Management: More regional banks in the U.S. could be in crisis

Odaily星球日报 · 2023-04-26T16:25:03.000Z

Odaily Planet Daily reported that Bob Michele, chief investment officer of fixed income at Morgan Asset Management, said that the pressure on the banking industry in the United States is still at crisis levels because consumers need money to buy higher-priced goods rather than just pursuing higher returns. , which drives deposit outflows. Michele also said that consumers have used up the excess savings brought by the "relief bill" during the epidemic, and now they are using more borrowings for consumption. More regional banks may be in crisis because they rely heavily on the Federal Deposit Insurance Corporation and the Federal Home Loan Banks for extra cash, and it remains to be seen how banks will fare after the bank bailout program expires. Michele said it would be naive to think the crisis is limited to First Republic. (Golden Ten)

Odaily Planet Daily News: Bob Michele, chief investment officer of fixed income at Morgan Asset Management, said that regional banking pressures in the United States remain at crisis levels because consumers need money to buy higher-priced goods, not just to pursue higher returns, which has driven deposit outflows. Michele also said that consumers have exhausted the excess savings brought by the "Rescue Act" during the epidemic, and now they are using more borrowing for consumption. More regional banks may be in crisis because they rely heavily on the Federal Deposit Insurance Corporation and the Federal Home Loan Bank for additional cash. As for how banks will operate after the bank rescue plan expires, it remains to be seen. Michele said it was a bit naive to think that the crisis was limited to First Republic Bank. (Jinshi)