Join our community of smart investors

US banks see famine after the feast

The party is over for US banks as executives wake up with a loan hangover
July 20, 2022
  • 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.

 

Investment banking drought

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in