For example, we now have a higher interest rate environment that will add more pressure on deposit costs.
There is anticipation of more builds for reserves, particularly for commercial real estate, but also possibly for credit cards.
The commercial real estate problem is the main issue.
"Anything that's levered like commercial real estate, it's a different world," Tom Michaud, CEO of Keefe, Bruyette & Woods, said in a recent interview on FactSet.
"I expect more commercial real estate losses in every category, the question is whether it is going to be cataclysmic or is it going to be manageable."
Persons:
Financials, Banks, Morgan Stanley, Wells, Wells Fargo, it's, Tom Michaud, Keefe, Woods
Organizations:
UBS, Credit Suisse, Bank of America, JPMorgan, Federal Reserve, First Republic, Regional Bank ETF, Bank, Allstate, Travelers
Locations:
Wells Fargo, Treasurys, Hartford