Liquidity concerns are putting pressure on banks right now, says Wells Fargo’s Jared Shaw

by | Mar 25, 2023 | Fidelity IRA | 32 comments

Liquidity concerns are putting pressure on banks right now, says Wells Fargo’s Jared Shaw




Jared Shaw, Wells Fargo equity analyst, joins ‘The Exchange’ to discuss the impact of Fed rate hikes on the financial sector. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

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In recent times, banks across the globe have been facing mounting pressures due to liquidity concerns. This is primarily due to a variety of reasons, ranging from the ongoing economic slowdown to increased regulatory scrutiny.

According to Wells Fargo’s Jared Shaw, one of the most significant concerns facing banks today is the shortage of liquidity. In a recent interview, Shaw explained that banks are facing increasing pressure from regulators to maintain a healthy level of liquidity, which has become quite challenging in the current economic climate.

One of the reasons for this pressure is the growing number of regulations that require banks to maintain a certain level of liquidity. These regulations were introduced in the aftermath of the global financial crisis of 2008, which exposed the inherent weaknesses of the banking system and highlighted the need for strict regulations.

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However, while these regulations were introduced with good intentions, they have also created new challenges for banks, particularly when it comes to liquidity. To maintain the required level of liquidity, banks need to hold a significant amount of cash and liquid assets, which can be quite expensive.

Another factor contributing to the liquidity concerns is the ongoing economic slowdown. As more companies face financial difficulties and default on their loans, banks are left with a higher number of bad loans on their books. This, in turn, makes it harder for banks to access the liquidity they need to continue operating.

Furthermore, the COVID-19 pandemic has added to the challenges faced by banks, as it has disrupted the economy and put additional pressure on businesses and consumers. This, in turn, has led to an increased demand for loans and other forms of credit, which has put even more pressure on banks’ liquidity.

In conclusion, the liquidity concerns facing banks today are a serious issue that requires careful attention and consideration. While there are no easy solutions, it is essential that banks work together with regulators and policymakers to find a way forward that ensures the stability and health of the banking system while maintaining the necessary level of liquidity.

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32 Comments

  1. CB BC

    This is like looking through a straw.

  2. Won Hur

    I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities.

  3. Taina Rodriguez

    What a liar. Who is he kidding?

  4. James Maduabuchi

    The stock market has been a really tough one this past year, but I watched an interview on CNBC where the anchor kept mentioning "katrina vanrensum ". This prompted me to get in touch with her, and from August 2022 till now we have been working together, and I can now boast of $540,000 in my trading portfolio.

  5. Aztekin

    2021 goes Ups we did it again ..is 2007 and we did it again ……2023 …..run run run take all their money stop paying their checks …move your direct deposits …now now now ..from all big banks !!

  6. Dave Jones

    Just heard that Wells Fargo are experiencing a ‘glitch’?? Bank run incoming?

  7. Nowicka Richard

    These past few days watching my crypto portfolio decline is very disheartening. Holding doesn't really profit much. Any idea on how to earn better on the short run?

  8. Simon Templar

    Here comes the debt crisis

  9. Susanna Bruemmer

    >>The market cycle still hasn't met its balance, we keep going round in circles while waiting for that bullish run on a great support. However, in the mean time we could always ignore the market ups and downs and stay fully invested. Big thanks to ROCHELLE DUNGCA-SCHREIBER for helping me earned over 17>btc by implementing her methods and following her guides

  10. Gebsus

    wells fargo will go to zero one day and i will be there

  11. Tim

    We have a way to go before inflation gets under control. It’s going to be a wild ride.

  12. Sam

    Oh yeah, I would listen to Wells Fargo….they always have our interests in mind.

  13. Pat Webster

    Wall Street needs to crumble and fail. It’s the biggest Ponzi scheme in history.

  14. MisterJ

    Bring it on. I’m dollar cost averaging all the way down

  15. Celcor Systems

    if Silicon valley bank was holding US treasuries, then US treasury value should go up? Does anyone know what kind US Treasuries Silicon was holding? 10 year has gone up

  16. Daniel Hutchinson

    The Liquidity Crisis was something Jim Rickards implied several Months ago.
    The need for Wealthy Investors to stash retirement funds in discreet Bank Accounts, appears to have deprived Financial Markets of cash.
    The ability to insure the supply of Federal reserve Notes is challenged by the ability to pay for the Treasury Notes that are sold to insure their validity.
    An economic Recession might challenge that ability and make the US Treasury Notes a failure.
    That would put the US into the same position as the Soviet Union in 1989……

  17. Hei Leopold

    Why did nobody foresee this? All were bullish.

  18. MrChad

    I know how you can fix the liquidity issue in the banks.. If the fed can squeeze the stock market, people will take their money out of stocks and put it in the banks and credit unions. That happened in the 2000's

  19. kurdi98k

    Any institution that goes deep with crypto, I will not leave my money there.

  20. z

    People need to pressure Powell to stop raising rates and cut rates sooner before he causes the next financial crisis

  21. Nosheen Irfan

    Banks will eventually be bailed out but what about the common man????

  22. Falcao Falcao

    Market is a pump and dump scheme

  23. manuvns

    wait for S&P To get to 3500

  24. Glow Wurm

    If banks can’t survive on interest rates which go beyond 0% then we’ve got a fundamental problem in our economies. The FED can’t keep saving the market, at some point these zombie companies must go out of business.

  25. kurdi98k

    I hid in Treasuries since December. Looks like I'm going stock shopping soon.
    Praying for a 2008 crash.

  26. Dillon

    WATCH-OUT-WATCH-OUT-WATCH-OUT TOP ROPE!!!!
    BOOM
    ITS POWELL!!!!!!!

  27. 10th grade drop out

    So the crash begins….. you get what you vote for!

  28. benz806

    "A spiral"? Everyone was saying how much better condition the banks are in versus 2008, geez Louise.

  29. Tempting Fate

    Now that it has made the news, there will be a depositor
    run on the bank

  30. Supernova

    Here we go! Buckle up!

  31. Sharp

    First, next stock market collapse?

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