Big financial institution CEOs will doubtless convey deposits and earnings are secure to lawmakers on Wednesday, in accordance with a serious monetary companies govt. Thomas Michaud, CEO of Stifel firm Keefe, Bruyette & Woods, thinks the listening to earlier than the Senate Banking Committee will efficiently present assurance to Washington and Wall Street. Banking chiefs slated to talk on the “Annual Oversight of Wall Street Firms” listening to embody JPMorgan CEO Jamie Dimon and Goldman Sachs CEO David Solomon. “The crisis of the spring where we had three of the four largest failures in history is behind us,” Michaud mentioned on CNBC’s ” Fast Money ” on Tuesday. He’s referring to Silicon Valley Bank , Signature Bank and First Republic — the latter of which was the nation’s greatest financial institution failure because the 2008 monetary disaster. Michaud, who testified earlier than Congress in May on the financial institution failures, hopes Wednesday’s listening to re-addresses the decision for adjustments to stop financial institution runs from pushing different monetary establishments over the sting. “One way to fix it is deposit insurance reform,” he mentioned. “The targeted approach to change deposit insurance to reduce the ‘too big to fail’ thinking, so depositors don’t run like that. That is what we need, and that effort has stalled in Congress.” He thinks motion is required to maintain mid-sized banks aggressive with the massive banks — beginning with lifting Federal Deposit Insurance Corp protection limits for small companies. Currently, the FDIC covers $250,000 per depositor, per insured financial institution, per possession class — an quantity that’s doubtless insufficient for small companies . “If deposit insurance reform in my opinion doesn’t happen, there’s going to be tremendous pressure on those [mid-size] banks to consolidate,” Michaud mentioned. Disclaimer
https://www.cnbc.com/2023/12/05/big-bank-ceos-will-assure-lawmakers-the-crisis-is-over-kbws-michaud.html
