- Corporate debt losses stack up
- Worries over consumer debt outlook
A loss of appetite for loans and the disappearance of investing banking fees mean the second quarter for the US banks was one of the least memorable in recent memory, with a range of institutions clearly suffering the after-effects of collapsing M&A deals, muted consumer spending and an unsteady housing market. While conventional wisdom has it that the US will avoid a possible recession this year, the results season had a distinct canary-in-the-coalmine feel to it, with lending and investment bank dealmaking a good lead indicator of future economic performance. As for the banks themselves, from an investor's perspective it was clearly a case of sorting out who were the losers and who were the bigger losers.