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Bearish investors are targeting bank stocks and ignoring the facts, according to Janney Montgomery Scott Director of Research Chris Marinac. In the episode, Marinac discussed the fallout from recent bank failures and the recent, sharp selloff in bank stocks. He said bearish investors are using banks as a “weapon of destruction” to try to force the Federal Reserve’s hand to either cut interest rates, consider a “blanket” deposit insurance alternative for banks or unveil a program that would support equity investors and the capital markets. He further noted that investors fail to recognize that even if bank earnings are weaker due to net interest margin pressure, they will be sufficient to cover substantial loan losses should they arise.
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Bearish investors are targeting bank stocks and ignoring the facts, according to Janney Montgomery Scott Director of Research Chris Marinac. In the episode, Marinac discussed the fallout from recent bank failures and the recent, sharp selloff in bank stocks. He said bearish investors are using banks as a “weapon of destruction” to try to force the Federal Reserve’s hand to either cut interest rates, consider a “blanket” deposit insurance alternative for banks or unveil a program that would support equity investors and the capital markets. He further noted that investors fail to recognize that even if bank earnings are weaker due to net interest margin pressure, they will be sufficient to cover substantial loan losses should they arise.
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