Fitch Ratings: Bank Sector 'Deteriorating', These Banks Face Most Risks | Christopher Wolfe

Christopher Wolfe, Managing Director and Head of North American Banks at Fitch Ratings, discusses the health of the banking sector in the U.S., and challenges ahead.
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*This video was recorded on May 21, 2024
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0:00 - Intro
1:16 - US sovereign downgrade
2:40 - Is today like 2008?
5:15 - Deteriorating banking sector
7:30 - Consumer stress
11:12 - Large vs small banks
14:00 - Changing regulations
16:20 - CRE 'highly vulnerable'
21:20 - Residential real estate
22:35 - Fitch bank ratings
27:00 - Worst case scenario
29:07 - M&A activity
#investing #banking #economy

[@curtissnow9546]

Banking sector is 100% facing a crisis as a bank employee. People are either broke, moving their money into online money market accounts that yield 5%, or investing all of their savings. On top of that, no one is getting loans bc dealerships can match or beat offers since the rates are so high and all car companies decided that acting like they care about the environment is more important that building a functioning car. No one wants a mortgage either bc you’d have to be insane to want to pay almost a million dollars for an overpriced 400,000$ house with these mortgage rates. Don’t even get me started on all the corporate bureaucrats who have no idea how to run a company, let alone a bank in a non zero interest rate environment. People should be very scared

[@TheDavidLinReport]

Higher for longer interest rates will continue to weigh down on bank sector growth, but do banks face a looming financial crisis? Sign up for an IRA with iTrust today using this link: itrust.capital/David FOLLOW FITCH RATINGS: Fitch Ratings: www.fitchratings.com/

[@gregorysagegreene]

Find me somebody who can tell me the truth, David. Seriously? 🤷‍♂️ 🏃🏃🏃💣⚡️💥💨

[@davidepattibiomed89]

Large Bank stocks Up and Up only. Long UBS doubled my money already

[@tarastruck]

I kind of interpret many post on here as acknowledging that we're reaching a market peak, in general, which is a well-supported thesis, and so if you've been sitting back chill while the gains roll in because bull market, well, time for traders to stay sharp, many are expecting volatility, probably a sharp downturn, smart traders should check their risk management is in shape, time to pay attention. The timing of his post vs what I know about the market supports that well enough. But yeah, the post could mean anything.....managed to grow a nest egg of around 100k to a decent 432k in the space of a few months... I'm especially grateful to Tobias Hawke, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[@tarastruck]

Tobias Hawke program is widely available online..

[@sophiepascoe]

Exploring new investment opportunities demonstrates your proactive stance towards financial growth during these volatile times. Diversifying your portfolio can play a crucial role in effectiveIy mitigating risks..

[@FirstNOnly]

Building a good investment portfolio is more complex so I would recommend you seek Tobias support.

[@501blackhawk]

Tobias Hawke’s understanding of market indicators is impressive. He knows exactly when to enter and exit trades for maximum profit. His siignals are top notch..

[@RuyVictorio]

The starting point to learn how to make money in general not just trading, is to have a strategy. It might be obvious, but there are many trader's out there who are merely guessing when trading and not having a strict trading strategy

[@chefandy72]

I'm very impressed with this channel. I expect it to grow, oh and I expect gold to go up as well.

[@user-ik4oc9ub8q]

Thank you for letting me know we are in big,huge ,enormous trouble for mid size and small banks going broke.

[@CorTec]

🔥🔥🔥Everything is A-OK, nothing to see here !🔥🔥🔥

[@ptupy]

Fitch’s rating of US creditworthiness is like me writing my own credit score

[@gregorysagegreene]

Man, this is the guy you definitely need - to tell the next lemming that the last lemming had no problems going over the cliff and is just fine! 5 mins later: Everyone runs screaming to exit.

[@chrishardin7183]

Banks are slowly but steadily reducing their unrealized bond loss as the bonds mature and that money is rolled into new higher yielding bonds.

[@kr0nz]

i could be wrong in my assessment but i felt he had to fit his explanations within some sort of polished agenda.

[@toxicmasculinity6246]

Community and regional banks are getting screwed by the Fed Funds rate. Deposits are fleeing banks and going into treasury money market funds. If banks don’t have deposits they don’t lend. If they don’t lend, the economy grinds to a halt

[@dchung726]

Great interview!

[@Resmith18SR]

Weren't people like him saying how the economy was doing just fine right a few months right before the GFC? So no recession, no housing bubble, no losses for consumers, banks, no one? All assets just keep going up with no end in sight? So the COVID pandemic was actually a good thing for the economy? Really?

[@TheOpinionSports]

That’s almost what he saying now

[@defunctuserchannel]

Yes exactly. He toes / tows the "party" line. We are currently at the "partial acknowledgement" stage.

[@jcgoogle1808]

Yes,.. they were outright fraudulent,..... before the GFC and even after the fan accelerated toward the fecal matter,... But that's all behind us. They are 100% trustworthy now. Btw if you believe that.. I'm offering 20% off on the Brooklyn Bridge in my bridge Memorial Day sale.

[@VinceTomJones]

This guy just talks BANKSPEAK.... We have entered into the biggest economic and social collapse in recorded History.... There WILL be a run on the Banks make no mistake about it.... If you have saving which most of you do not have these days,,, Remove them from the Bank NOW also buy A GENERATOR...

[@VinceTomJones]

@@defunctuserchannel Yes BANKSPEAK

[@PonziZombieKiller]

It's all gunna crash like a mofo and Jerome and Janet will give them golden parachutes and another 12 to 15 years of debt to gamble with...

[@VinceTomJones]

Very cleaver David.. I didn't see it at first.... But I can see you had this pilock on to show us just how well and truly fearked we all are,,,, Great Strategy David,...

[@slowridefpv9668]

Isn’t loaning the government money at 1% and 30 year mortgages below 3% risky lending? The interest rates that are troublesome aren’t the current rates it’s the plandymic rates?

[@paulsaragosa371]

I attended our Lady queen of angels seminary at 12yrs in San Fernando Valley California

[@justinchapman5876]

Aren't the banks pulling back on loss provisions despite the increase in defaults? I don't think we truly understand the amount of fraud that exists within the mortgage industry. I get that banks don't have massive exposure to this anymore but someone does.

[@zkal11]

At least some banks are, I don't know if it's widespread tho. Sounds like we both still know more than this guy (or maybe we'll just SAY more of the truth outloud). No disrespect to our host, enjoy the channel.

[@bradw2k]

100% this guy will not see GFC2 coming

[@VinceTomJones]

He cant even find his own nose on a good day...

[@Locpik]

The spin is strong in this one

[@gregorysagegreene]

Metacloroids, yeah!

[@vikramkhaira]

Hey David just curious, why you interviewed this guy???

[@VinceTomJones]

ha ha ha Nailed it

[@michaelwillis5040]

I'm just finishing up reading Gregory Zuckerman's book titled "The Greatest Trade Ever" about the 2007-2008 housing debacle. It certainly seems that many of the same forces at play then are still active today and I expect the result will be much the same only worse as commercial real estate will be added to the wreckage. Bank failures will continue and the merry go-round will continue turning until the Federal government stops spending money they don't have.

[@conduit242]

Those that can’t bank, rate

[@ANSHUL1700]

My bull run picks: LINK, UNI, and SOL. Best presale? Hands down, Revux.

[@Resmith18SR]

It sounds like he thinks this economy is doing just fine. Im sure he's doing just fine but what about the millions of people who are really suffering living on low incomes?

[@ethanhensley3194]

see thats the issue here, all this money in the stock market & crypto is just rich ppl moving around other rich peoples money. And they got alot of it; they are just recreating new ways to take as much as possible from the retail investors. And then it leaves us peasants to go against other peasants bc once again its harsh capitalism for the working class.

[@Resmith18SR]

@@ethanhensley3194 Exactly, and then they have the nerve to complain about all the unsightly homeless encampments messing up their pristine environment. They wonder why there's more fentanyl and drug abuse and crime in their cities while they're driving around in their $80,000 EV or truck. They could absolutely care less about poverty and their fellow Americans suffering.

[@VinceTomJones]

This guy just talks BANKSPEAK.... We have entered into the biggest economic and social collapse in recorded History.... There WILL be a run on the Banks make no mistake about it.... If you have saving which most of you do not have these days,,, Remove them from the Bank NOW also buy A GENERATOR...

[@louistan7560]

Parallels? It is going to be a lot worse except people who are asked try to avoid confirming it. This clearly shows how bad the situation is. Rating agencies have been very relaxed on rating criteria and a wide rating range. Now is the time to tighten and compress the range if they truly do their job.

[@tilaktamboli6432]

Consolidating my portfolio to focus on BTC and Revux, maybe a touch of LTC.

[@paulsaragosa371]

Lucy's is the sky with diamonds 💎

[@deepakkumar-ih6hk]

Moved all my funds into BTC and Revux. This presale is too good to pass up.

[@kali542]

10 thousand you knows

[@25Soupy]

I gave up counting after 25 yeah knows.

[@user-rs4pt5fj3r]

Hearing so much about Revux in my crypto groups. Definitely on the rise!

[@MrJkenner]

I keep hearing "experts" say the reason consumer debt is going up suddenly now is because the fiscal stimulus checks from a couple years ago are just now running out. Could someone show any evidence of this because it seems ridiculous? I feel like this would be reason number 78, not 1.

[@gregorysagegreene]

They keep wanking us off on this idea of a few measly bucks given out long ago ... and long gone. It's a great distraction, from what they *really* don't want to tell us.

[@blockmedia5576]

oh god they are starting to say they arent worried. When they say they are not worried, thats when you panic.

[@brianoleson5785]

would someone working with fitch ratings lie?

[@thegrail9636]

Subprime loans are still alove along with games. They just call it a different name to get around Dodd Frank

[@jeffsurfanderson]

Does Consumers have a spending problem. Parents don't teach the kids how to save. It's like a drug addiction for kids and young adults once they have it they can't stop they need financial education

[@paulsaragosa371]

It is thy special act of thy whole world thy entirely so to speak on and on down into the ocean

[@wayne4768]

I thought I was watching CNBC

[@jshatfield115]

This guy is highly blue pilled. His opinion is irrelevant. But hey we gotta talk to these people as well I guess.

[@duperpokgab]

These are the same people who rated subprime debt AAA. Asking them about parallel to 2008 is sus.

[@paulsaragosa371]

What is happening with the gargoyles

[@Firehorse39]

Good Grief!?!

[@25Soupy]

This guy Christopher Wolfe, Managing Director and Head of North American Banks at Fitch Ratings was fumbling all over his words like he was afraid to say the wrong thing. Did anyone count how many times he said the words "umm" and "yeah know"? It's like he's a afraid he'll get canned like when the S&P downgraded the US government in 2011 from an AAA grade to a AA+ grade. "Later, the US Government commenced an investigation into S&P's role in the rating of several mortgage-backed securities which played a role in the 2008 financial crisis." "In order to mend its relationship with the US government, S&P asked its then-CEO to step down, a mere 18 days after the US was downgraded. S&P announced on August 23, 2011, that Deven Sharma would step down as a Chief of Standard & Poor's effective September 12, 2011, and would leave the company by end of the year."

[@VinceTomJones]

He is afraid to say the wrong thing..... They have PHOTOS of him.... rest assured..

[@paulsaragosa371]

1993 Shazam wowee prise into the sky with vanilla

[@paulsaragosa371]

Swans and thy redundancy of thy pawns

[@eponaepona]

The fact that I opened comments in the first 5 minutes tells something is off with the episode 😂

[@paulsaragosa371]

Like a horrible times of thy hang man's game

[@oishisakana]

So your saying no one really has any idea what is and will happen. Got it.

[@arpik903]

Sounds like he still works at the FED to me.

[@paulsaragosa371]

Let s not worry be happy song lyrics 1980s song Bobby McFarlane

[@sliekerstar]

Doesn’t see a recession in 2024!?! I think this guy is on the $100 lunch program

[@shaunblue3594]

Bros now using the same boring old headlines “financial crisis” 😂😂😂 He leaves Kitco to go it alone to put his own creative spin & still churns out the same pastries. 😂

[@jacknaneek1681]

What’s Tom Papa’s brother doing here?

[@nickbargas7352]

I thought the same

[@IcyCreamyDreamy]

Ya'know... You know... Ya'know... This guy sounds just like SBF to me.

[@danielmarks5133]

Like the FED I’m staying higher for longer David!

[@cristinavillegas2229]

I am off to the horse races what do you think about number 5 😂

[@Resmith18SR]

No housing Bubble? What's this guy been smoking?

[@gregorysagegreene]

Guess prices double historical ratio to incomes is juuuust fine.

[@paulsaragosa371]

Thy magnificent ⌚️ ⏱️ 🕛 ⏳️ ⌚️

[@paulsaragosa371]

Omnipotent brains 🧠 storming

[@paulsaragosa371]

Let s go count sand okay game 🎮

[@paulsaragosa371]

I'm not a very tiny little brain storming

[@banana-lakefishing6077]

David why the hell did u bring this guy in?

[@sajen7676]

Who else thinks Revux will outperform XRP soon?

[@paulsaragosa371]

Albiet is thy Albert Einstein mannic depression

[@adamalker71]

Money is not meant to control people rather it is meant to be put to work producing more money for you. You cannot build wealth without putting money in its rightful place.

[@LindaHarmel]

You're correct!! I make a lot of money without relying on the government. Investing in stocks and digital currencies is beneficial at this moment.

[@Richardson238]

Thanks for the advice! I'm new to financial planning and wasn't sure where to start. Any tips on finding a reliable financial adviser or resource to guide beginners?

[@Melbn-di6mi]

As a beginner, it's essential for you to have a mentor that is verified by finra and SEC to keep you accountable. I'm guided by a widely known financial consultant Stacey Macken

[@FranklyHunt]

Stacey demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit

[@dorathystephanie7702]

I remember giving her my first savings $20000 and she opened a brokerage account for me it turned out to be the best thing that ever happened to me.

[@c8089923]

This interview takes me back to The Big Short - when Mark and Vinnie meet with S&P Rating Agency. Good times

[@shakazulu3594]

So, the banks aren't making bad home loans...in fact, they aren't making home loans that much anymore at all. Instead, home loans are now coming from unregulated lenders. I'm sure they all have pristine underwriting standards and the housing market is hunky dory.😅🤣😂 #wakeup

[@MaxAntihero11]

So 0% rates and QE don’t qualify as financial engineering for this guy?

[@paulsaragosa371]

Nixon

[@lqspopculturereview5339]

Plz disguise Lyn Alden better with AI

[@paulsaragosa371]

99percent of the entire world 🌎 captain kirk and rent and Stimpy cartoons

[@nancygreen8186]

This fella isn't going to say anything negative. He doesn't want any runs on the bank. So we're just going to hear a bunch of blah blah blah blah.

[@Gordyswhey]

His issue is that he believes banks abide by the Dodd-Franks Act.

[@doit2376]

Think you missed the timing on this guy, he would of been hit a few weeks or a month out after the down grade.

[@paulsaragosa371]

Pack mannic depression fever

[@welchkoservices4200]

I miss the old lady who was blind.... Bee Well all

[@dorningarts]

I do not think this interview is going to age well.

[@user-rc7gz4ok4e]

La-La-Land

[@paulsaragosa371]

Mmmmm mmmmm mmmmm mmmmm good

[@conduit242]

Fitch 🤣🤦‍♂️

[@paulsaragosa371]

Holly strawberries batman we are in a jam yah tada hahaha bad Colby cheese 🧀 and it's not cho cheese okay with all this stuff 8oomillion x8 sh ooooooooo hug me

[@Chuck68ify]

It's all good, housing hasn't gone up, the fiat toilet paper has lost 25%.😊

[@billwalton4571]

you lose all your money by staying in cash

[@brianoleson5785]

@@billwalton4571 bad comment.... just forget the bubbles pandemics and speculation no deflation black swans possible ok

[@brianoleson5785]

@@billwalton4571 ONLY if u dont expect a historic recession or depression im in that camp so short term few years ur money is not trash if assets crater and people remember 2024 / 2025 like 2008 and 1930s

[@user-fp9ed4ji7v]

yawn, all ok really then so pointless clickbait title

[@maverickjones9418]

Man this man knows what he’s talking about.

[@paulsaragosa371]

Stupidity love lonesome love song by the hemlock lonesome and the entire world 🌎 endless love Lionel and the 🦁 simba and all other Nala s animals and their friends the lions 🦁 king s

[@gustavis85]

Nothing to see here….

[@erikonas822]

BS

[@rodpetrie1088]

Boring, yawn.

[@MM-qv5lf]

The more you listen to these "experts", the more you realize these guys are completely clueless.

[@BolsakTBagger]

boring guest

[@25Soupy]

Yeah, David couldn't get rid of him fast enough. His shortest interview to date.

[@paulsaragosa371]

Prideful mountain ⛰️

[@Jdhsjdgjshdhdh]

Consolidating my portfolio to focus on BTC and Revux, maybe a touch of LTC.

[@afsalafsal3439]

Consolidating my portfolio to focus on BTC and Revux, maybe a touch of LTC.