Janet Yellen Says More Bank Mergers Likely Amid Industry Turmoil in Meeting With Over Two Dozen Execs: Report
Treasury Secretary Janet Yellen says that the banking trade will possible consolidate additional into larger giants because the trade continues to climate arduous instances.
This week, Yellen met with over two dozen CEOs and executives convened by the Financial institution Coverage Institute (BPI) to debate the present state of the economic system and President Biden’s financial agenda.
In response to the Treasury,
“Secretary Yellen reaffirmed the energy and soundness of the U.S. banking system, noting that it stays well-capitalized with sturdy liquidity. She famous that decisive federal motion taken by regulators and the Administration in March to guard depositors helped to strengthen public confidence within the banking system and mitigate monetary contagion.”
Though Yellen seems to be projecting the energy of the US banking system, CNN cites sources conversant in the matter that the Treasury Secretary additionally mentioned the potential for financial institution mergers through the assembly.
In response to CNN, Yellen advised the CEOs and executives that extra financial institution mergers sooner or later could also be crucial.
Yellen’s feedback come following the large JPMorgan takeover of First Republic Financial institution, which collapsed final month earlier than being seized by the US authorities.
JPMorgan Chase, the biggest financial institution within the US, acquired about $173 billion price of loans, $30 billion price of securities and $92 billion price of deposits, each insured and uninsured.
Jamie Dimon, Bitcoin (BTC) critic and CEO of the financial institution, mentioned,
“Our authorities invited us and others to step up, and we did… This acquisition modestly advantages our firm general, it’s accretive to shareholders, it helps additional advance our wealth technique, and it’s complementary to our present franchise.”
Whereas Dimon and JPMorgan shareholders have been pleased with the takeover, others have been involved concerning the growing focus of energy within the trade.
Massachusetts Democrat Elizabeth Warren, who can be a staunch cryptocurrency opponent, reportedly warned that the scale of JPMorgan was turning into a possible menace to People.
“What occurred right here is as a result of a financial institution was under-regulated and began to fail, the federal authorities has helped JPMorgan Chase get even larger…
It might look good as we speak whereas every thing’s flying excessive, however in the end if a type of large banks, JPMorgan Chase, begins to stumble, the American taxpayers are those who will likely be on the road.”
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