Midsize Banks and Jaime Dimon Quote
Most midsize banks continued to decline in stock value this week
- Written by Banking Exchange staff
Most midsize banks continued to decline in stock value this week, even as First Republic was absorbed by JP Morgan.
However, a number of industry names issued only halfhearted optimism regarding the health of the nation’s banking industry on Tuesday and Wednesday.
Jamie Dimon, CEO of JPMorgan Chase stated the “initial phase of the regional bank crisis is over.” Dimon did not seem to assure markets that he meant anything beyond the JP Morgan Chase’s takeover of First Republic Bank.
Many analysts showed concern for banks that were in the midsize range of more than $50 Billion in assets but were not in the top tier. Regulation focused on bigger banks is one of the reasons given as to why smaller banks might also be able to weather the storm.
However, higher rate hikes could be quite costly for smaller banks.
While a .25 percent rate hike is likely already baked into the market on Wednesday, the central bank’s report will impact volatility on bank stocks.
Words of optimism would be welcomed by the banking community to minimize bank withdrawals in the month of May.
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