Chris Whalen, of Institutional Risk Analytics, says a bloodbath in the banking industry is still dead ahead.
“Loss rates for the industry will be very high," Whalen says, forecasting record charge-off rates, higher loan loss reserves and a lot of "minus signs" for banks' bottom lines.
"Right now the total egg — credit — is shrinking," Whalen told Tech Ticker. "The bank side is not a source of growth."
"Can you pull it out on the capital market side? Maybe, but I'm not sure where that comes from" given many of the big banks have loaded up on low-risk securities in the aftermath of 2008's bloodbath. (more)
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