Citigroup CEO Jane Fraser has pointed out that the US banking system is strong, safe and that JPMorgan’s purchase of First Republic will help calm the market.
Jane Fraser, Executive Director City Grouphas pointed out that The US banking system is strong and safe After the last banking crisis. Furthermore, he said that buying of first republic By JPMorgan Chase should help calm the market according to Brian Sozzi at Yahoo Finance.
“I have to say there is a palpable sense of relief from everyone this morning because there is no doubt about the sadness that the bank failed,” Fraser said on Yahoo Finance Live. Milken Institute Global Conference 2023 on Monday. “It was the last remaining major uncertainty A handful of smaller banks that didn’t do a good job with asset and liability management And they also fell victim to the sharpest rise in the rate curve seen in 40 years.”
“As we look at the US banking system in general, it’s a solid system, it’s a safe system, it’s the envy of the world,” Fraser said.
Fraser remains focused continue to transform your global bank That context grows even more so with the acquisition of its competitor JPMorgan First Republic.
“Los Regulators seized regional bank First Republic on Monday morning and sold most of the bank’s operations to JPMorgan, mark it Biggest bank failure since the 2008 financial crisis” informed of David Hollerith D Yahoo Finance,
For JP Morgan, distress buying is nothing new: the bank acquired Washington Mutual and Bear Stearns at the height of great financial crisis a decade ago.
JP Morgan agreed to take over $173 billion in assets, $30 billion in securities, and $92 billion in all In the warehouses of the First Republic.
First Republic to strengthen JPMorgan’s presence in wealth management An area that Citi has also identified as a good opportunity.
“I think you’re seeing … different banks playing different roles,” Fraser said. have a tendency to Think of big banks only in national terms, we play a globally important role, we run our own organization 4 trillion dollar volume per day That’s Germany’s GDP on a daily basis to 5,000 multinationals worldwide.”
City Group It started the month with a bullish gap at $47.25, but closed the session in the red, with the 70 and 200 period moving averages holding on to the first candle of the month. Meanwhile, EI indicators are mixed.
