While talking about the second wave of the banking crisis in the USA, a statement came from the JPMorgan manager about the events.
The CIO of JPMorgan Asset Management said it would be “naive to say this is limited to the First Republic only”. According to the CIO, the crisis is not only in one bank.
JPMorgan Executive Thinks Banking Crisis Will Deepen
While the effects of the banking crisis in the USA in the past months have not been overcome, the crisis is deepening. After Silicon Valley Bank and Signature Bank, First Republic Bank is also having problems.
An executive at JPMorgan Asset Management said more banks could be in trouble once the Federal Deposit Insurance Corporation (FDIC) and Federal Home Loan Bank (FHLB) emergency loan programs end.
The JPMorgan executive made the statements in an April 27 Bloomberg television interview. Bob Michele, CIO of JPMorgan Asset Management, stated that the impact of the liquidity problems arising from the First Republic’s significant deposit outflows is not limited to the bank itself, but that this situation may affect the banking sector.
When asked if she sees this as a “First Republic problem or a banking problem,” Michele said:
“To say that this is limited to the First Republic would be a little naive.”
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