![]() “There are a lot of companies sitting on very low-cost funding,” Michele said. ![]() Much of this debt will have to be rolled over at higher rates. CRE loans are due to mature by 2027, with $270 billion alone coming due this year, according to real estate data provider Trepp. can escape even the type of mild recession that has already befallen Europe. Michele is now stress testing his assets for a 3% to 5% contraction in economic activity over a couple of quarters, since he’s not buying rosy predictions from Goldman Sachs that the U.S. “The markets viewed it as…there was a crisis, there was a policy response, and the crisis is solved.” “This does remind me an awful lot of that March-to-June period in 2008,” Michele told CNBC in an interview on Friday, citing the three-month rally that followed the Bear deal. history occurring this spring, economic data has proved resilient and equity prices have continued their march higher, underpinned by hopes for a coming productivity surge, thanks to generative artificial intelligence.įifteen years ago, JPMorgan famously bought Wall Street’s fifth largest investment bank, Bear Stearns, in a government-brokered deal to stave off its collapse-not unlike its recent acquisition of First Republic Bank that looks to have stopped further contagion among regional lenders. Bob Michele, who is responsible for managing $700 billion in assets for the world’s most valuable bank, believes there are too many current parallels to the 2008 global financial crisis to simply dismiss the idea of a repeat out of hand.ĭespite three of the four largest bank failures in U.S.
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