Several major US banks expressed concerns last week about a range of issues confronting their industry despite record profits during the third quarter, according to a report by Bloomberg.
The combined profits for Wells Fargo, JPMorgan and Citigroup were reported to have risen to $22.5 billion. But executives with the banks were said to be troubled by developments in a number of areas, including new capital requirements that are being imposed by regulators. For example, banks will be required to set aside more capital for customers with large unused credit lines.
The report said bank executives discussing the topic during their earnings call were angry about the new requirements and the financial burdens they would cause for their firms, and warned they may have to raise prices or reconsider offering certain products as a result.
JPMorgan CEO Jamie Dimon added another note of caution regarding the ongoing wars, saying they made this “the most dangerous time for the world in decades.” Dimon was quoted as saying, “While we hope for the best, we’re preparing the firm for a wide range of outcomes.”
The banks also said that despite their strong profits, they had also written off nearly $4 billion in bad loans, about double the amount of a year ago.
The attorneys at Lewitas Hyman include former senior attorneys at the SEC whose legal experience and industry knowledge make them uniquely qualified to provide counsel on securities regulatory, compliance and enforcement matters. Our clients include broker-dealers, RIAs, banks, investment companies and hedge funds, along with registered representatives and other individuals participating in the securities industry. If your firm is facing an investigation from a regulatory agency, please contact Lewitas Hyman at (888) 655-6002 or through our online contact form.
