Tuesday, May 13, 2025
  • Dashboard
  • Login
  • Registration
  • Contact us
quantann
No Result
View All Result
quantann
No Result
View All Result
quantann
No Result
View All Result

Blackrock CEO Warns More Bank Seizures and Shutdowns Could Result From Regulatory Changes – Economics Bitcoin News

March 20, 2023
in Cryptocurrency
Reading Time: 4 mins read
0
0
Home Cryptocurrency
Share on FacebookShare on Twitter

[ad_1]

Blackrock CEO Warns More Bank Seizures and Shutdowns Could Result From Regulatory Changes – Economics Bitcoin News

The CEO of Blackrock, the world’s largest asset manager, has warned about additional bank seizures and shutdowns that could result from regulatory changes in response to the failures of several major banks in the U.S. “It does seem inevitable that some banks will now need to pull back on lending to shore up their balance sheets, and we’re likely to see stricter capital standards for banks,” he added.

Blackrock’s Chief on More Bank Seizures, Shutdowns

Larry Fink, the chairman and CEO of Blackrock, the world’s largest asset manager, shared his view on the U.S. economy and recent bank failures in his annual chairman’s letter to investors, published this week.

“This past week we saw the biggest bank failure in more than 15 years as federal regulators seized Silicon Valley Bank. This is a classic asset-liability mismatch. Two smaller banks failed in the past week as well,” Fink described. Silicon Valley Bank was shut down by regulators on March 10 while Signature Bank was seized by the New York State Department of Financial Services last Friday. Silvergate Bank also recently announced voluntary liquidation, and 11 banks bailed out First Republic Bank this week. In Switzerland, Credit Suisse also fell into trouble and received a bailout from the Swiss central bank.

“It’s too early to know how widespread the damage is. The regulatory response has so far been swift, and decisive actions have helped stave off contagion risks. But markets remain on edge. Will asset-liability mismatches be the second domino to fall?” the Blackrock executive wrote, adding:

We don’t know yet whether the consequences of easy money and regulatory changes will cascade throughout the U.S. regional banking sector (akin to the S&L crisis [savings and loan crisis]) with more seizures and shutdowns coming.

“It does seem inevitable that some banks will now need to pull back on lending to shore up their balance sheets, and we’re likely to see stricter capital standards for banks,” he continued.

“Over the longer term, today’s banking crisis will place greater importance on the role of capital markets. As banks potentially become more constrained in their lending, or as their clients awaken to these asset-liability mismatches, I anticipate they will likely turn in greater numbers to the capital markets for financing,” Fink explained.

The Blackrock executive further warned: “In addition to duration mismatches, we may now also see liquidity mismatches. Years of lower rates had the effect of driving some asset owners to increase their commitments to illiquid investments — trading lower liquidity for higher returns. There’s a risk now of a liquidity mismatch for these asset owners, especially those with leveraged portfolios.” Fink detailed:

As inflation remains elevated, the Federal Reserve will stay focused on fighting inflation and continue to raise rates. While the financial system is clearly stronger than it was in 2008, the monetary and fiscal tools available to policymakers and regulators to address the current crisis are limited, especially with a divided government in the United States.

“With higher interest rates, governments can’t sustain recent levels of fiscal spending and the deficits of previous decades,” he additionally cautioned. “The U.S. government spent a record $213 billion on interest payments on its debt in the fourth quarter of 2022, up $63 billion from a year earlier.”

What do you think about Blackrock CEO Larry Fink’s economic view? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It

[ad_2]

Source link

Tags: BankBitcoinBlackRockCEOEconomicsNewsregulatoryresultSeizuresShutdownsWarns
Previous Post

UBS reportedly seeks $6 billion in government guarantees for Credit Suisse takeover

Next Post

Top Wall Street analysts like stocks like BJ’s & CrowdStrike

Related Posts

edit post
Amid Bitcoin ETF Race, BlackRock, Fidelity, Invesco Dot Their Bureaucratic I’s as Likely SEC Action Looms
Cryptocurrency

Amid Bitcoin ETF Race, BlackRock, Fidelity, Invesco Dot Their Bureaucratic I’s as Likely SEC Action Looms

by Quantann
December 30, 2023
edit post
Goldman Sachs Exec Predict Growth For Digital Assets In 2024
Cryptocurrency

Goldman Sachs Exec Predict Growth For Digital Assets In 2024

by Quantann
December 30, 2023
edit post
Analyst Warns Of Bitcoin Dip, BTC Price To Reach K?
Cryptocurrency

Analyst Warns Of Bitcoin Dip, BTC Price To Reach $40K?

by Quantann
December 29, 2023
edit post
Coinbase International sets perpetual futures leverage limit to 10x
Cryptocurrency

Coinbase International sets perpetual futures leverage limit to 10x

by Quantann
December 29, 2023
edit post
Rough Days Ahead For Bitcoin? 2 Experts Predict A Price Correction Before New ATH
Cryptocurrency

Rough Days Ahead For Bitcoin? 2 Experts Predict A Price Correction Before New ATH

by Quantann
December 29, 2023
Next Post
edit post
Top Wall Street analysts like stocks like BJ’s & CrowdStrike

Top Wall Street analysts like stocks like BJ's & CrowdStrike

edit post
UBS Takeover of Credit Suisse Could Be Imminent: Reports

UBS Takeover of Credit Suisse Could Be Imminent: Reports

edit post
Reverse Mortgage: What It Is, How Seniors Use It

Reverse Mortgage: What It Is, How Seniors Use It

  • Trending
  • Comments
  • Latest
edit post
Credit Card Market Share — 2023 Analysis & Data on Processors

Credit Card Market Share — 2023 Analysis & Data on Processors

March 8, 2023
edit post
Alpha Spread Review – How Does This Platform Compare?

Alpha Spread Review – How Does This Platform Compare?

February 4, 2023
edit post
Why Gold Is Still The Best Money

Why Gold Is Still The Best Money

January 9, 2023
edit post
Evaluating Oil & Gas Stocks: A Comprehensive Guide for Energy Investors

Evaluating Oil & Gas Stocks: A Comprehensive Guide for Energy Investors

July 25, 2024
edit post
Understanding the Dynamics of Energy Commodities: A Comprehensive Analysis

Understanding the Dynamics of Energy Commodities: A Comprehensive Analysis

July 19, 2024
edit post
FDX Earnings: FedEx Corporation reports higher Q4 revenue and adj. profit

FDX Earnings: FedEx Corporation reports higher Q4 revenue and adj. profit

June 26, 2024
Facebook Twitter Instagram Youtube RSS
quantann

Get the latest news and follow the coverage of Financial News, Stocks, Analysis, Trading Updates and more from the top trusted sources.

No Result
View All Result

CATEGORIES

  • Blog
  • Business
  • Commodities
  • Cryptocurrency
  • Investing
  • Markets
  • Personal Finance
  • Trading

SITE MAP

  • About Me
  • Contact us
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Terms and Conditions
  • Cookie Privacy Policy

Copyright © 2022 Quantann.
Quantann s not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Business
  • Markets
  • Commodities
  • Cryptocurrency
  • Personal Finance
  • Trading
  • Blog
  • About Me
  • Analytics Dashboard
  • Login

Copyright © 2022 Quantann.
Quantann s not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In