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Might be premature ,but these two banks are suffering from devaluation and its pure speculation as to why? The banking industry is suffering from diminishing deposits from a public drained financially, 50% of jobs part-time and retailers cutting the part-time to fewer hours scamming workers to works core business hours rather than a complete 8 hour shift, thereby limiting investment products, and depositing loose change figuratively speaking. The real blow to banking is the inability to allow for deposits exceeding 9k before neck hairs in the security go spiking cancelling out millions perhaps billions of deposits IRA's , CD's, Roth's and due to laundering, suspicious at risk deposits. Instead of creating a screening and up front guarantee deposits are rejected ? Banks lump monies daily into Treasury Notes which do not guarantee consistent return. The loans are generally PRIME based and the consequences of that brainstorm can and does eliminate customers. Banks seem to mimmic a car dealership having zero deals , stripped of innovation, and restrictive to a point that may make banks a horror story for the grandkids that once upon a time there were banks ......no really? What's in YOUR wallet...keep it there! Wells and Chase have great staffers and service ,but unless they become micromanaged with added innovation they could become dino's?
The United States has about 150 million workers, and about 26 million of those are part time. About 3/4 of the part time workers want to be part time workers.
Everything has gone down since the new year so it is not specific to these banks or other banks. Devaluation is the result of traders and the market and not the economy. All data points to the economy being stagnant at worst with 1-2% GDP growth and growing moderately at best. The oil price is a strain on these oil companies and banks may be affected by some of the loans they made but consumer loan quality is strong and the oil loans only make up a minor portion of their portifolio. I think I read JPM has 17 billion in exposure to sub AA oil loans and has added some to their loan loss reserves in case a tenth of these loans fail.
Consumer deposits really isn't even a concern for these banks in the short or medium term.
Many people after 2008 closed accounts with too big to fail banks, instead joining credit unions and local banks. However, stated earlier, those deposits may not matter to these large banks. I hate Wells Fargo and pray they vanish forever or craw back underneath a rock in California's Death Valley.
Homerun push back by John 620 . please understand I have a car loan with Wells and bank with Chase and very happy with the service ,but they have been an endangered species for about three years. I do believe they can reconstruct if they view that need as I do.
Last edited by openmike; 01-16-2016 at 04:18 PM..
Reason: Formating issues
Let me add Citicorp, and BOA , who are all leveraged with derivatives that if not performing could tank them as well.. Trillions could go up in smoke, but it's not my wish of course .
Another day, another thread about "the end is near".
Just because a thousand people have predicted a crash and it hasn't happened doesn't mean this prediction can't happen. Maybe this is the one.
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