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U.S. Banks Facing Interest-Rate Risks, Sheila Bair Says

Tuesday, July 2, 2013 - 6:29 PM
This quote by Sheila Bair (the former FDIC Chairwoman) in this Bloomberg article had me thinking about banks that may feel pressure to avoid early withdrawals from low-rate CDs:
“A lot of that will depend on how fast their deposits reprice as interest rates go up,” she said. “If their funding cost goes up faster, that could be a problem.”

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Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
1. Wednesday, July 3, 2013 - 9:08 AM
I really don't believe the banks are going to allow their interest rates to go up but a paltry amount if any.  People just aren't getting the loans they want them to take out so they can make more money so they won't be able to raise those rates until they can be sure they can make it back.  This economy needs a drastic turn around so more jobs will be available and those who have jobs can feel secure they won't be thrown into partime work due to Obamacare costs for companies. 
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135