It’s been just revealed that a $5,610,000,000 fund manager says that we should expect more financial crises in the US along with more banking failures. Check out the latest reports below.
More financial crises in the US
The chief executive of a $5.61 billion private investment firm warned about the fact that the crisis in the banking sector is not yet over.
In a new Bloomberg Invest interview, Soros Fund Management CEO Dawn Fitzpatrick said the fact that more bank failures are in sight as she believes the embattled sector is still flashing red flags under the hood.
“I think you are going to see more bank failures, likely in the small banks. So it’s not going to be the big headlines and the size of the failures we had so far. But I think there [are] more problems under the surface.
So you’ll see continued sales.”
He believes the fact that banks have to prepare for incoming regulatory measures, which she calls “pretty punitive.”
Fitzpatrick also said that the Federal Reserve would likely introduce regulations that require banks to report their unrealized losses on assets such as government bond holdings.
“The Federal Reserve has said they’re doing a comprehensive review of bank regulation. I think what that’s going to look like is enhanced stress test, AOCI (accumulated other comprehensive income) exemptions I think are going to disappear. That’s [when] people did not have to mark things to market.
I think when it comes to liquidity management, there’s going to be a lot more scrutiny on that.”
He continued and said the following:
“One of the interesting things coming out of the (2008) financial crisis: there was a lot of focus on asset quality… and not as much on liability management. But now we know deposit assumptions were just wrong.”
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