Banks nearly took down the economy in 2008. Now the industry hopes to redeem itself

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“In the global financial crisis, banks were the problem,” said Mike Mayo, a bank industry analyst at Wells Fargo. “The silver lining from that is that banks are prepared for a situation like this, and they want to be part of the solution this time.”

said customers impacted by the coronavirus could skip the March payment on their Apple Card without incurring extra interest. Banks are anticipating that the requests will only climb as the impact of shutdowns tied to the virus grows.

Banks are in a stronger position now because after the financial crisis, caused by irresponsible lending that led to public bailouts of the industry, regulators imposed rules including higher capital requirements and annual stress tests. The industry has stockpiled $914 billion in capital to help cushion loan losses, a 40% boost in the last decade.

"It feels like 2008-2009 in terms of the market dislocations and the uncertainty of what happens next, but for the banks it's a completely different situation with their capital levels," said David Konrad, an analyst at D.A. Davidson. He added that banks would likely help the Fed smooth out dislocations in funding markets with backup lines of credit.

"I've heard from a lot of people pissed that they pulled their buybacks at the time it makes the most sense to do it," Peabody said. "The government is saying, 'We want you to step up to support households, small businesses and corporations.' But is it prudent to reallocate that capital to a zombie company in the energy patch or in the airline industry?"

 

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I would like to ask Mr. Mike Mayo (Mikemayo) and why Wells Frago is discriminating against me and why they say I am involved with FRAUD?

I’m invested into some great banks that’ll survive this market downturn!

Really 😂😂😂 How bout the guy who was told he couldnt withdraw 100k of his own money because he didnt have a good enough reason to do so? 😎 Bank runs incoming imho , stay safe out there

The biggest joke is CLX becoming a high beta tech stock. Up $24 dollars yesterday...LMAO. This is an absolutely SCREAMING short. Italian cases have plateaued and will begin to decline...that’s 4 weeks!

Oh yeah? Who’s holding all the corporations bad paper?

Bullshit

The solution begins with bring manufacturing out of Asia we have to cut the communist support

By “prepared,” do you mean having $1T/night lifeline from Jay Powell? 🤔

c_mike13 haha just stop. you know they all were buying there own stocks right? and now whomever shorted the market is laughing there way to there own deserted island.

Yeah right

If the banks are prepared why did they just take $1.5 trillion from the feds?

the scumbags were 'bailed out' by the taxpayer via govt, the plan this time is just freeze the deposits they have have on reserve to allow them an out on stress testing, meanwhile the depositor, read public, have their funds frozen and lives inconvenienced greatly. Audit the fed.

No matter how much you post about xrp news station they will only report and comment on Ripple when ripple pay them to report and that’s when the price is running high. Bank on bgarlinghouse never forget that question put to you brad are you the devils advocate you said NO

Let them hold off on people making payments for 90days with homes cars assets equality lines credit cards etc . Just add 3 more payments to the loan term automatically so every country doesn’t have to mortgage their future to save their economy and save small big businesses jobs

The assumption is that citizens will forever be able to maintain interest payments. This time around all citizens are in quarantine- so how on earth can banks be prepared for something like this ? It’s a Black Swan event.

Banks can be apart of the solution and use xrp you report on Ripple enough why are you not tying them up

Hey Banker...want to help...Stop your trading desk from shorting!!!

That made me chuckle.....

Good thing SenWarren is not a serious contender. Can you imagine how much worse the meltdown would be for banks and Wall Street if she had made a serious run at being POTUS?!

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Opinion: Forget 2008, this stock market sell-off is 2001 all over again'We will all need to be patient and hunker down. This will eventually end, and life will return to something resembling normal. So will the economy and stock market,' writes CNN's LaMonicaBuzz LaMonicaBuzz Going back to 'normal' is what worries me. Normal got us here. No healthcare, corporations controlling the world, billionaires deciding who lives and who dies. LaMonicaBuzz Lots of bots on this thread. Putin must have gone all out because of the election. LaMonicaBuzz Normal for us minnions
Source: CNN - 🏆 4. / 95 Read more »