Chart of the Week: Increased Consumer Loan-Loss Provisions
There's growing weakness in the consumer lending space. All of the major banks have upped reserves.
There's growing weakness in the consumer lending space. All of the major banks have upped reserves.
Aka, self-regulation. Hahahahaha. We're old enough to remember the concept of "living wills". And how it took years and millions in professional fees for banks to comply. AND, fyi, those wills just got kicked down the road. Self-regulation, that's a good one. As it turns out, a new report concludes that "indicators of bank soundness have not recovered to pre-crisis levels." Still laughing. "In the United States, where the crisis originated, a new wave of deregulation appears to be underway: the government is considering reducing provisions of the Dodd-Frank Act and reviewing rules on financial advisers’ conflicts of interest. This may lead to the re-emergence of fragilities that post-crisis regulation aimed to tackle." Ugh. Laughter replaced with the pounding of beers and tears.
Speaking of banks, as we (allegedly) get farther away from the crux of the oil and gas downturn, banks are lending again in the oil and gas space. Albeit under tougher restrictions.
More banks have failed already in 2017 than in 2016. And as noted by Jones Day LLP, Washington is legislating that financial institutions may file for Chapter 11 protection.