Fed Chair Powell has the backbone of a jellyfish. Therefore it will be interesting to see what he and his band of banking flunkies do at their FOMC meeting later this month – especially if Financials continue to trade down and should consumer prices remain elevated as we expect (CPI release is Tuesday at 8:30am ET).
It is difficult to have sympathy for Fed Chair Powell as the Fed made its own bed with 15 years of QE – i.e. unnaturally easy monetary policy. Of course the Banks would behave badly and not carry enough liquid assets on their books to meet unexpected spikes in deposit withdrawal requests. Of course the Banks were too quick to lend.
The answer is not more regulation. The answer is have the right CEO in the chair with the right team. Why is it that Jamie Dimon has never flirted with death, whether it be his years as COO of Citi or his time as CEO of Bank One before leading JPM? Dimon and JPM were winners during the 2008 financial crisis and I suspect that JPM will be a winner during this messy period – picking up accounts (aggressively) and banks (opportunistically).
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