The collapse of the big investment bank Silicon Valley Bank (SVB) will not lead to a full-blown recession in the US in the near future. Even before the turmoil in the domestic banking sector, lending growth in the US market slowed, opens The words of Seth Carpenter, the leading economist of the financial conglomerate Morgan Stanley, Bloomberg agency.
According to him, in the USA so far there are relatively reliable conditions for avoiding a recession that would require mass layoffs of employees of large companies and a credit crisis due to low income and expenses of the population and businesses. Therefore, the local labor market is still characterized by a low level of unemployment and the reduction in bank loans remains at an acceptable level.
“We must remember that the situation is already slowing down as funding conditions for banks tighten significantly and banks stop lending – especially given what has happened after all the banking turmoil. Credit growth was already slowing before we got these new headlines about the banking turmoil. Carpenter concluded by saying:
On April 23, the Financial Times cited a statement by Democratic Party member Josh Gotheimer. knowledgeableHe said at least nine members of the U.S. Congress sold their bank shares before and during March’s market turmoil due to the collapse of major investment bank Silicon Valley Bank (SVB) and financial problems from other lenders. We are talking about the sale of securities of the SVB, the financial company Charles Schwab and the Florida bank Seacoast Banking.