It’s been just revealed that the US banking crisis will continue, according to the latest reports. Check out what JP Morgan asset management says.
JP Morgan asset management CIO addresses the banking crisis in the US
Not too long ago, it’s been revealed the fact that the chief investment officer at J.P. Morgan Asset Management says that the crisis in the country’s banking industry is not done claiming victims.
In a new Bloomberg Television interview, Bob Michele says that the banking crisis will not stop with the troubled bank First Republic.
According to Michele, regional banks are keeping their heads above water with the support of two key government programs, says the online publication the Daily Hodl.
He said that these banks could altogether shutter their doors if the government decides to pull the plug.
“Well, I think we have both [a banking problem and a First Republic problem]. And I think it’s somewhat naive to say that this is just limited to First Republic.”
He continued and said the following:
“If you step back and think about it, this should never have happened. This (happened) in of the most heavily regulated, capitalized industry on the planet – banking. And the regional banking system I think is quite vital to the US.”
He went on and said this:
“So I think it is a crisis. I think the regional banks are heavily dependent on the FDIC (Federal Deposit Insurance Corporation). They’re heavily dependent on the Federal Home Loan Bank to get additional cash. We don’t know how they’re going to operate when those two programs expire.”
Regarding the state of the crypto market today, at the moment of writing this article, BTC is trading in the green, and the king coin is priced at $29,283. Stay tuned for more news from the crypto space and traditional finance.
