Posted on 10/12/2022 8:51:26 AM PDT by EBH
Oct 11 (Reuters) - The six biggest U.S. banks are expected to have set aside nearly $5 billion in the third quarter to cover future loan losses, Wall Street analysts said, as lenders brace for a potential global recession.
Profits at big banks got a boost last year as they released funds reserved for potential COVID losses. In the third quarter of last year, they released about $4 billion of loan provisions, according to data from Refinitiv.
But with growing fears of a recession as the U.S. Federal Reserve hikes interest rates aggressively to tamp down inflation, reserves in the third quarter, expected to be at the highest levels since mid-2020, could be the biggest drag on bank profits, analysts said.
JPMorgan Chase & Co (JPM.N) Chief Executive Officer Jamie Dimon on Monday warned of a recession in the next six to nine months
The biggest U.S. bank by assets kicks off third-quarter results on Friday,
(Excerpt) Read more at reuters.com ...
Is a recession eight straight quarters of negative growth? Sarcasm.
It depends on what your definition of “is” is...
And here I thought we were already in a recession.
Is that not “settled science?”
Only $5 billion? That’s chump change and only a facade. There’s a lot of structural changes that need to be made.
This will become a self-fulfilling prophesy. These banks are not lending to home builders and small businesses that are the leading industries for getting out of a recession. Housing starts are dormant while demand grows naturally creating upward pressure on prices and inflation.
Roosevelt said it best regarding the reason for the Great Depression, “The only thing to fear is fear itself.” These banks are consumed with fear of the future, and nobody is going anywhere until they snap out of it.
What they need to see is easing from the Federal Reserve which will give them the confidence to lend the billions the Fed has already given them rather than sitting on it.
No idea what they are basing that on. Hopium? Drugs?
War
The government can still avoid a recession but only if it takes decisive action NOW!
Specifically they need to redefine "recession" again before it's too late!
Recessions only occur under Republican administrations.
$5 billion won’t go very far.
Build But B*llsh*t!
Get yur money out of the banks before the bank runs occur. They gonna steal it.
Should have said:
Bilk But B*llsh*t!
Get yur money out of the banks before the bank runs occur. They gonna steal it.
The definition of any word constantly changes. This isn’t a time where things actually mean anything or stays the same. This isn’t the 1950s. It is 2022. This what I learned.
I really don’t like the times I live in. The 1950s must have been nice. I know they were not perfect.
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