Wall Street banks are already feeling huge pressure from a Fed rate cut that hasn’t even happened yet (GS, BAC, MS, WFC, C, JPM)
|07/20/2019||Posted by BusinessMediaguide.Com under General World News||
- Several of Wall Street’s biggest banks reported second-quarter results this week that rattled investors and got them worried about the impact of lower interest rates.
- In the weeks leading up to bank earnings, investors and analysts were worried about net interest margins, one of the most important metrics for a banks profitability.
- Both Wells Fargo and Citigroup reported declining net interest margins, and Goldman Sachs lowered its yearly outlook for net interest income.
- The Fed is expected to adjust borrowing costs in July, and as rates move lower, banks earn less money on their overnight deposits to other institutions. read more >>>