Citigroup CEO Says, ‘This Is Not a Credit Crisis,’ After Three US Bank Failures

Contact Your Elected Officials
The Epoch Times Header

The head of Citigroup denied that there was a credit crisis despite three U.S. bank failures and the collapse of Credit Suisse this month.

Citigroup CEO Jane Fraser stated that she had sound confidence in American banking system after the series of closures caused investors to panic, sparking chaos in financial markets worldwide.

“The banking system is pretty sound” and that large and regional banks are still well capitalized, Fraser told the Economic Club of Washington, D.C., on March 22.

“This is not a credit crisis. This is a situation where it’s a few banks that have some problems, and it’s better to make sure that we nip that in the bud,” said Fraser, one the first major bank CEOs to make a public comment since the crisis began.

Major Banks Keep Smaller Rival Afloat for Now

Over the past two weeks, Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank (SBNY) collapsed, with the latter two being taken into receivership by the federal government.

SVB failed after making risky bets in the bond market, while SBNY and Silvergate Bank got too heavily involved in cryptocurrencies.

Soon after, Credit Suisse was taken over by its Swiss rival UBS, while America’s top lenders agreed to deposit $30 billion into First Republic Bank after its near collapse last week.

“I don’t think anyone was falling off their chair that Credit Suisse ultimately ended up where it did, it was really a question of time,” said Fraser, who said she wasn’t surprised.

“It’s been a troubled institution for a long time,” she explained, noting long-term problems with management and various crises.

Citi, the fourth-largest U.S. bank, was one of the 11 major banks which offered a lifeline to First Republic in an effort to help it buy more time for restructuring.

Fraiser said that although Citi has no intention in buying First Republic, the bank contributed about $5 billion as a sign of confidence in the troubled lender and expects to be paid back.

By Bryan Jung

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

How The Big Beautiful Bill Will Keep Louisiana’s Energy Industry Strong

Renewable or not, our federal govt should not be rigging the deck against any energy sources, especially nuclear power that is both clean and consistent.

On Declaring War, Congress De Facto Amended the Constitution

Congress has de facto amended the Constitution by 55 years of refusing to debate matters of war and peace.

AOC – Acting On Cue

It is easy to dislike Alexandria Ocasio-Cortez (AOC), also known as Sandy Cortez, because she is fraudulent and not to smart.

LGBTQ™ Propaganda Roundup: Tampon Tim Walz Fails the Test

LGBTQ™ Propaganda Roundup: Nip/tucking the latest social engineering fisted...

AI is Now an Existential Threat

We now see evidence that artificial intelligence is an existential threat to our future. It is coming to take American jobs!

DOJ Sues LA Over Sanctuary City Policies: 4 Things to Know

DOJ filed a lawsuit against Los Angeles over what it said are “sanctuary city” policies that shield illegal immigrants from deportation efforts.

Rep. Dusty Johnson Will Run for Governor of South Dakota

U.S. Rep. Dustin Michael “Dusty” Johnson has announced that he will run for governor of South Dakota during the general election to that office in 2026.

Moderna to Ask for Clearance for Combination COVID-Influenza Vaccine

Moderna is going to ask regulators to approve its combination vaccine against COVID-19 and influenza, the company said on June 30.

FBI Says It’s Uncovered ‘Largest Health Care Fraud’ in American History

FBI and DOJ said $15 billion in losses was reported in “largest health care fraud” investigation in U.S. history. Officials charged more than 300 people.

Federal Reserve ‘Should Be Ashamed’ for Not Lowering Interest Rates, Trump Says

President Donald Trump said Federal Reserve Chair Jerome Powell and his colleagues “should be ashamed” for not lowering interest rates.

Canada-US Trade Talks Will End Until ‘Certain Taxes’ Are Dropped, Trump Stresses

Trade discussions between Canada and the United States will end “until such time as they drop certain taxes,” U.S. President Trump said in an interview.

Trump Says US to Send Tariff Letters to Trade Partners Before July 9 Deadline

President Donald Trump said Sunday he will soon send letters to trading partners detailing the tariffs to be imposed on their exports to the United States.

Trump Says He Found a Buyer for TikTok

President Trump said he found a buyer for the Chinese-owned short video application TikTok, and that he will reveal the group in roughly two weeks.
spot_img

Related Articles