BE PREPARED
:. . .JPMorgan Chase & CO (JPM.N) CEO Jamie Dimon said on Thursday that regional banks are "quite strong" after reporting good earnings, and that the industry and regulators should "just be prepared for problems."
Dimon said he anticipated more bank regulation stemming from the crisis, adding that authorities, including the U.S. Securities and Exchange Commission (SEC), should investigate short selling on bank stocks and potential collusion via social media posts. JPMorgan had agreed last week to acquire First Republic Bank in a $10.6 billion deal engineered by regulators.
A study by New York Fed researchers also released on Thursday showed that shuffling of bank deposits following the collapse of Silicon Valley Bank, which triggered concerns about a broader crisis, was largely confined to "super regional" institutions in the $50 billion to $250 billion range. .
Other regional lenders were trading lower on Thursday.
KeyCorp (KEY.N) and Zions Bancorp (ZION.O) were down between 1.8% and 3%, respectively. Valley National Bancorp (VLY.O) fell nearly 1% and Comerica Inc (CMA.N) lost 4%. The KBW Regional Banking Index (.KRX) dropped more than 1%.
The shares extended losses after the Federal Deposit Insurance Corporation said on Thursday that around 113 of the country's largest lenders will bear the cost of replenishing the $16 billion hit to its deposit insurance fund caused by recent bank failures. .
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