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9:42 a.m. ET, April 14, 2023
Big bank CEOs address the banking meltdown
Chief executives at some of the largest banks in the United States were forced to address the elephant in the room as they reported first-quarter earnings on Friday morning: The regional banking crisis that brought Silicon Valley Bank and Signature Bank to ruin last month.
Still, said Dimon, who leads the country’s largest bank, “financial conditions will likely tighten as lenders become more conservative, and we do not know if this will slow consumer spending.”
> “I believe today’s crisis of confidence in the regional banking sector will further accelerate capital markets growth, and BlackRock will be a central player,” wrote BlackRock CEO Larry Fink on Friday.
That means bad news for regional banks could be good news for BlackRock — the lack of trust in regional banks will drive more investment into capital markets and BlackRock is poised to benefit as that happens.
“Throughout our history, moments of market dislocation and disruption have served as inflection points for BlackRock,” he explained.
Regulators also hired BlackRock in early April to help the US government in the sale of the $114 billion in assets it collected from the collapse> Citigroup and PNC did not address the banking crisis in their releases, but will likely answer questions about how they’ve weathered the turmoil and what they see ahead at their first-quarter presentations, planned for 11 a.m. ET.
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