As US federal regulators, including the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve (Fed), have identified concerns about crisis management tactics of four banks, market strategist Gareth Soloway recently expressed concern that something is “wrong” in the US banking sector and claimed that the big banks are shedding large amounts of bad debt significantly.
Last week, FDIC and Fed shortcomings have been noted in the crisis resolution plans of Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase. Furthermore, some analysts have questioned the stability of the US banking system and some predict remarkable adjustment on the stock market.
In one the interview recently with Kitco, Soloway highlighted emerging weaknesses in the US banking sector.
“I’m hearing a lot of talk about big banks unloading bad debt, trying to get through some impending crisis.”
“Because interest rates are so high, losses in mortgage-backed securities are likely to rival what we saw in 2008 and 2009. Additionally, the commercial real estate market is in difficult situation. And these are all things that banks are holding on their balance sheets.”
According to Soloway, the stock performance of major banks, incl JPMorgan, has seen a technical decline. He noted that JPMorgan recently broke down its trend line and Citigroup also. Soloway pointed to signs of fundamental problems in the banking sector and mentioned that some large institutions are starting to divest from these major banks.
Soloway also mentioned Bitcoin, the biggest cryptocurrency prediction can withdraw to the range of 50,000 USD if the Fed applies tough measures to the market.
When asked about whether Bitcoin will reach a new ATH, Soloway expressed uncertainty. He said reaching a new peak could depend on the future performance of the stock market. If the stock market peaks, Soloway predicts that Bitcoin may not see a new peak until after the stock market experiences a significant sell-off and subsequent recovery.
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According to NewsBitcoin
