Wall Street banks are creating the “next investment bubble” by selling opaque and unregulated structured notes to investors hunting for yield, according to Christopher Whalen , managing director of Institutional Risk Analytics.
Oct. 16 (Bloomberg) -- Christopher Whalen, a senior managing director at Tangent Capital Partners LLC, talks about the departure of Citigroup Inc. Chief executive Officer Vikram Pandit and the outlook for the firm. Whalen speaks with Deirdre Bolton, Peter Cook, Erik Schatzker and Dominic Chu on Bloomberg Television's "In the Loop." (Source: Bloomberg)
Josh Rosner, managing director at Graham Fisher and Company, Christopher Whalen, senior vice president and managing director of Risk Analytics, and Bob Ivry, reporter with Bloomberg News, discuss banks. Rosner, Whalen, and Ivry talk with Bloomberg's Kathleen Hays of "The Hays Advantage" on Bloomberg Radio.
Profit margins at U.S. banks may get a boost from increasing deposits as customers show a preference for immediate access to their money and less appetite for risk with interest rates at a record low and the economy still seeking a bounce from recession.
The Federal Reserve’s policy of keeping interest rates persistently low, which has helped boost bank earnings over the last six quarters, is beginning to make it harder for the biggest U.S. lenders to make money.
Before Meredith Whitney predicted that municipal defaults in 2011 would total “hundreds of billions of dollars” in a Dec. 19 broadcast of CBS Corp.’s “60 Minutes,” several analysts made similar claims that the market would collapse.