Banks Rocked Again As Brexit Fears Accelerate
Looks like the pressure from a British person, the American financial services companies will face comparable headaches, says Erik Oja, U.S. banks analyst at S&P in the world market intelligence.
“Interest rates will remain lower for longer,” said Oja Monday morning on CNBC.
US banks also fell Monday morning, with losses of some stocks are hitting 4 to 5 percent in the first few hours of trading. But some analysts analyst is an individual who performs analysis of a topic are less gloomy prognosis for the stock of U.S. banks than for their counterparts in the UK and the EU.
“Direct exposure to the UK is the minimum for U.S. banks,” the analysts at Goldman Sachs wrote. “We estimate 5 percent to 12 percent hit to our Bank assesses in the absence of more rate hikes Before the end of this year or the next and additional downside risk to the money centers if the capital markets are weaker than expected, on top of that.”
Analyst dick Bove of Rafferty capital markets said, worrying banking stocks has been overdone. Banks in the S&P 500 fell 3.4% in afternoon trading, under the leadership of national organization of financial, fifth third bancorp and regions financial, which fell more than 6 percent.
Bove said banks remain profitable and well capitalized, as evidenced by last month’s stress tests, said that banks could survive very adverse financial conditions as bad or worse than the financial crisis. Banks located 39.1 billion dollars in the fourth quarter, a decline of 1.9% compared to the same period in 2015, according to the Federal Deposit insurance Corporation.
“Banks in the United States in 2015, earned more money than they ever made in the history of the industry, despite the fact that interest rates are at historically low levels, the economy is not growing very fast and was even lawsuits and fines apply,” Bove, Vice President of equity research at Rafferty, said in an interview. “Fundamentals of the theory of banks bank is a financial institution that accepts deposits from the public and creates credit failed because they were too big. The question people need to ask themselves how this industry makes so much money if all these things were wrong.