Market News Daily - Barclays CEO Says Banks Will Continue to Tank the Markets.
Market News Daily – Barclays CEO Says Banks Will Continue to Tank the Markets.

Barclays (NYSE:BCS) CEO C.S. Venkatakrishnan says banks will likely continue to tank the markets as banks look to adjusting business models and “sell portfolios to cure themselves”.

He added that the acute crisis has passed but that many banks will be forced to change their business models—including possibly by curtailing lending.

“I think the phase of initial discovery is over and I think there’s going to be a little bit of a longer-term discovery and adjustment,” he said.

“I think as a systemic risk, it’s over,” UBS Chairman Colm Kelleher said at The Wall Street Journal CEO Council Summit in London last week.

“What’s not been solved yet is what is the funding model that will work going forward.”

Data released Wednesday showed U.K. inflation rose to 6.9% on an annual basis, its highest level since 1992, fueled by higher wages and corporate profits, per WSJ.

“Many of the other banks may not have an asset problem to the degree that Silicon Valley Bank or First Republic had,” said the Barclays CEO.

“But they have a problem which is bigger than they would like. So, they’re looking to sell portfolios and they’re looking to cure themselves and what that will probably mean is less lending.”

Less lending and more price drops in the markets.

Barclays stock is down more than -2% this year-to-date.

Other bank stocks like Bank of America are down more than -15% this year-to-date with PacWest currently down more than -68%.

Many retail favorites are down between 80%-90%.

Is There a Banking Crisis?

Market News Daily - Barclays CEO Says Banks Will Continue to Tank the Markets.
Market News Daily – Barclays CEO Says Banks Will Continue to Tank the Markets.

Banks are running out of liquidity and are cutting back thousands of jobs globally this year.

The US bank’s latest job cuts will hit 3,000 roles globally across most of its key divisions, as it embarks on its second round of redundancies within the space of six months, says FinancialNews London.

Morgan Stanely (NYSE:MS) recently cut around 70 dealmakers in Europe; the latest round of layoffs to hit the Wall Street bank this week.

Managing directors within its investment banking and global capital markets teams in Europe, the Middle East and Africa were informed of job cut decision earlier this week on Monday according to people familiar with the matter.

At the senior level, approximately 10 managing director dealmakers were cut in the region, the people added.

In January, Morgan Stanley’s rival Goldman Sachs laid off more than 3,000 employees and cut executive salaries.

Bank layoffs will continue throughout the year.

The latest 1,000 bank employee layoff by JPMorgan (NYSE:JPM) has creating panic in the banking industry.

About 1,000 First Republic (OTCMKTS:FRCB) employees have lost their job across all of First Republic’s businesses, per Financial Times.

“The cuts are a further blow to First Republic employees, who have already had a challenging two months.

Within the next 30 days, JP Morgan will notify First Republic employees of their job status, and not everyone will be offered a position with the bank.

Bank Accounts Are Being Frozen

On top of bank layoffs and banks having to continue selling portfolios, customer accounts are also being frozen.

JPMorgan is freezing customer bank accounts in the latest bank scandal.

Republican attorneys general from 19 states say the bank is “persistently” discriminating against its own clients and closing bank accounts without warning.

The law enforcement officials, led by Kentucky Attorney General Daniel Cameron, sent a letter to JPMorgan CEO Jamie Dimon stating that the banking giant’s practices go against the company’s own policies on equality, per Business Insider.

The letter, which has now been published by the Wall Street Journal, states that JPMorgan has repeatedly discriminated against customers based on their religious or political beliefs.

“It is clear that JPMorgan Chase & Co. (Chase) has persistently discriminated against certain customers due to their religious or political affiliation.

This discrimination is unacceptable.

Chase must stop such behavior and align its business practices with the anti-discrimination policies that Chase proclaims.”

The New York City (NYC) Banking Commission said on Thursday it is freezing new bank deposits at Capital One (NYSE:COF) and KeyBank.

Following the first-ever public hearing held by the New York City Banking Commission on Thursday, all three members voted to freeze deposits at Capital One and KeyBank after the banks failed to submit required plans demonstrating their efforts to root out discrimination.

Market News Published Daily

Market News Today - Barclays CEO Says Banks Will Continue to Tank the Markets.
Market News Today – Barclays CEO Says Banks Will Continue to Tank the Markets.

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