Everybody Is, Bluntly, Struggling’ said Bill Demchak, CEO of PNC Financial Services Group on an earnings call.
CEO, CFO, and Analysts Quotes
- PNC CEO: ‘Everybody Is, Bluntly, Struggling’ said Bill Demchak, CEO of PNC Financial Services Group on an earnings call. “The generic corporate client we talk to, who’s otherwise open and doing business, is almost without exception down from what they would have expected going into the year and down from where they were last year.”
- Citigroup CEO: “I don’t think anybody should leave any bank earnings call this quarter simply feeling like the worst is absolutely behind us and it’s a rosy path ahead,” Citigroup Inc. Chief Executive Michael Corbattold analysts Tuesday. “I don’t want to be pessimistic…I want to be a realist.
- JPMorgan CFO: “In the first quarter, when we were really looking at a deep but short-lived downturn, we were really very much focused on most impacted sectors,” said JPMorgan Chief Financial Officer Jennifer Piepszak. “Now that we’re looking at a more protracted downturn, we’re reserved for a much more broad-based impact across sectors.”
- JPMorgan CEO: “We cannot forecast the future,” JPMorgan CEO James Dimon told analysts. “We don’t know. The word unprecedented is rarely used properly. This time it’s being used properly.”
- Wells Fargo Analyst: “People are scared, and they are responding by both banking their cash and basically prefunding their borrowing needs as much as they can,” Wells Fargo bank analyst Mike Mayo said.
Things are poised to get worse as reopening goes in reverse in the south. And things were not improving fast in the first place.
- Cass Transportation Index “Not Good By Any Measure”
- Housing Starts and Permits Improve But Not Enough
- China’s Unexpectedly Strong Growth Isn’t What it Seems
- Industrial Production Rises But It is Far Below the Pre-Covid Trend
- Patients Stranded in Emergency Rooms as Hospitals Fill Up
Mish
good economic article (without Trump ) that has relevance to what is going on. This is what we read you for. Read CNN or MSNBC or just watch TV news is Trump bashing is your thing.
The banks are increasing reserves because they know a buttload of loans are going to default. It will begin with commercial real estate, but it will spread to business loans, residential real estate, auto loans, and then pretty much everything. Production and profits are in the toilet, and their is no sign we are even close to turning this thing around. It is now beginning to cascade into a negative feedback loop, and it will not stop until all the excessive valuations of the past 30 years have been reduced to their intrinsic values. We will have a major correction in stocks, bonds, and real estate, and when we do, millions will wake up to the reality that their wealth was all just paper, and perception based on fantasy, and the truth is they are broke.
The entire banking sector will have to be nationalized.
Uncle Scam will be your banker, and the IRS his collection agency.
Cannot be avoided at this point.
Nothing, ever, have to be nationalized. Up to, and arguably including, the nation.
There’s nothing wrong with age-old bankruptcy processes. In fact, what’s wrong, is specifically that things have been effectively nationalized, by way of bailouts, Fed intervention and other nonsense, instead of simply being allowed to go through plain, old bankruptcy.
Trump wants to cut funding for covid testing and support. This would all be comical if not for real lives being affected. Infants are now testing positive for covid in large numbers in Nueces county in Texas.
School reopening? Large-number study from Korea says 10-19 year-olds are big transmitters of the virus.
Gigantic economic repercussions.
Hong Kong is shutting down again, they’ve closed their Disneyland, work-from-home order for civil servants, mandatory mask wearing, extending limits on restaurants, building more quarantine facilities, distance learning, etc.
This ain’t over yet…more losses will arrive.
This is a big fucking deal. If I would not be excommunicated from the world of science, I would call this an evil virus, but I can’t do that because I can’t impugn motives to it. But if I could, I would call it that. It’s certainly pernicious. This is the worst pandemic in our lifetime. And it is the first time we have had a pandemic in the United States in which we have had such a total, abysmal failure of our federal government. link to wired.com
Guess you havnt heard about HIV, which for some reason is never talked about in the press. 1980s. 100% fatal. 250,000+ dead. This pandemic is only notable because the right people started to die from it: grandmothers and virgins. And just as much government incompetence.
America Should Prepare for a Double Pandemic
COVID-19 has steamrolled the country. What happens if another pandemic starts before this one is over? link to theatlantic.com
I know I’m about 50 years too late but it really seems like this dual mandate was probably a bad idea 😀
It was.
And for the same reason, combining shooting yourself in the head and drinking crankcase oil, is also a bad idea.
A dual mandate is mathematically impossible because a single input cannot control a multiple output system unless all outputs are linearly related, which the economy is NOT.
Fiddling with interest rates won’t fix this problem. Either will turning the Federal Reserve into a bad bank where high risk loans go to default. A clean slate with borrowing limits by individuals and a prohibition on duration mismatch will go a long way to rebuild the financial system.
Banks Double Loan Loss Reserves ‘Everybody Is Struggling’
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Say what you want about Jamie Dimon, but he is smart (for a banker). He knew the ride about over pre covid. If you check JPM’s balance sheet, in 2019 loan total actually declined (around $25 billion) while treasuries (safety) grew over $80 billion.
The losses are JUST beginning. It will take several years to work them out.
Dow 50 billion.
Apart from everyone struggling, well 17 bn total listed above is not that much nowadays. Take EU, they are shuffling in circles around 750 bn trying to make out there appears oversight by at least one prudent nation that makes the whole show seem virtuous. Clearly private banking is fully free market set and has to profit, sorry compete against spending by those they fund, erm something like that, but I’m sure everyone will come out ahead and even those who lose their business will be supported until they learn how to code.
Ripple effect. Nothing good here.
The next couple quarters are going to be alarming.
Keep up the good work, Mish.