'Shark Tank's' Kevin O'Leary Says Rising Rates Are Killing Regional Banks: 'We've Started To See The Cracks'
Portfolio Pulse from Shanthi Rexaline
Kevin O'Leary, from 'Shark Tank', warns that the Federal Reserve's aggressive rate hikes are causing serious repercussions for regional banks. The recent hike to a 22-year high of 5.25%-5.50% is increasing the cost of capital and impacting real estate loans. O'Leary predicts more rate hikes to come. The regional banking crisis has already led to the collapse of several small to mid-size banks, including Silicon Valley Bank, First Republic Bank, and Silvergate. The SPDR S&P Regional Banking ETF (KRE) ended Friday’s session up 1.44% at $48.72, but is down about 15% this year.
July 30, 2023 | 6:36 pm
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First Republic Bank has collapsed due to the Federal Reserve's aggressive rate hikes, which have increased the cost of capital and impacted real estate loans.
The aggressive rate hikes by the Federal Reserve have increased the cost of capital, which is impacting real estate loans. This has led to the collapse of First Republic Bank.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
The SPDR S&P Regional Banking ETF (KRE) ended Friday’s session up 1.44% at $48.72, but is down about 15% this year due to the Federal Reserve's aggressive rate hikes.
The aggressive rate hikes by the Federal Reserve are causing serious repercussions for regional banks, which is negatively impacting the SPDR S&P Regional Banking ETF (KRE).
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100