The CEO of Blackrock, the world’s largest asset manager, has warned about additional bank seizures and shutdowns that could result from regulatory changes in response to the failures of several major banks in the U.S. “It does seem inevitable that some banks will now need to pull back on lending to shore up their balance sheets, and we’re likely to see stricter capital standards for banks,” he added.
Blackrock’s Chief on More Bank Seizures, Shutdowns
Larry Fink, the chairman and CEO of Blackrock, the world’s largest asset manager, shared his view on the U.S. economy and recent bank failures in his annual chairman’s letter to investors, published this week.
“This past week we saw the biggest bank failure in more than 15 years as federal regulators seized Silicon Valley Bank. This is a classic asset-liability mismatch. Two smaller banks failed in the past week as well,” Fink described. Silicon Valley Bank was shut down by regulators on March 10 while Signature Bank was seized by the New York State Department of Financial Services last Friday. Silvergate Bank also recently announced voluntary liquidation, and 11 banks bailed out First Republic Bank this week. In Switzerland, Credit Suisse also fell into trouble and…