MS' Graseck Says Banks Will Be Looking For Deals

The video discusses the current state of the banking sector, focusing on earnings expectations, deposit betas, and the impact of rate hikes. It highlights the potential for increased deal activity and examines credit issues, particularly in the subprime sector. The discussion also covers the value of major banks like JP Morgan and Wells Fargo, and their preparedness for a potential recession.

What is one reason for the low expectations in the large cap bank space?

• High deposit betas

• Increased provisions

• Strong economic growth

• Decreased loan demand

How do deposit betas typically behave after the Fed concludes rate hikes?

• They become unpredictable

• They accelerate

• They remain stable

• They decrease significantly

What is expected to happen with deal activity as we move into the next year?

• It will decline further

• It will remain stagnant

• It will accelerate

• It will be unpredictable

Which bank is considered to have positive operating leverage according to the discussion?

• Bank of America

• Goldman Sachs

• Citibank

• JP Morgan Chase

What is the expected impact of a recession on banks according to the discussion?

• Banks will have fewer losses

• Banks will see increased profits

• Banks will experience accelerating losses

• Banks will remain unaffected

What accounting standard is mentioned as beneficial for banks in a recession?

• GAAP

• IFRS

• Basel III

• Cecil

What is a bright spot for banks in terms of credit issues?

• High consumer loan defaults

• Normalization of commercial loan losses

• Increased subprime pressure

• Rising interest rates