Former Goldman Sachs CEO Blankfein says US banking crisis will slow growth

[brooklynite]

Reuters

WASHINGTON (Reuters) - Former Goldman Sachs CEO Lloyd Blankfein said on Sunday the banking crisis in the United States was going to expedite overall credit tightening and slow the U.S. economy.

"It is a certainty that this will - that this situation will cause - will act in a way that’s similar to a rate rise in some ways. Banks will have to, you know, because of the tension, because of the pressure and uncertainties, banks will husband their equity," Blankfein told CNN in an interview on Sunday.

"They'll do less lending on the deposits they have. And so already there's going to be less credit. Less credit means less growth. So, some of the mission of the Fed in trying to slow the economy will be done here," the former Goldman Sachs CEO added.

Financial stocks lost billions of dollars in value since Silicon Valley Bank and Signature Bank collapsed earlier in March. U.S. President Joe Biden said on Friday the banking crisis has calmed down. He also told Americans that their deposits are safe.

[harumph]

1. OMG - no way! File under "water is wet."

[walkingman]

2. I've put bankers in the lawyers, politicians, and used car salesman classification - not trustworthy

[ProfessorGAC]

3. Sounds Like A Public Lobbying Effort

I'll wait until analysts with no dog in the hunt tell me there are fundamental issues.
So far, I'm not hearing a lot of that.

[Silent3]

4. Well then, fucking stop with the interest rate hikes and deliberately trying...

...to create a recession.