No. of Recommendations: 2
Interest-rate cuts by the Federal Reserve may have a greater negative impact on big banks due to their higher asset sensitivity, unlike the regionals which are more neutral to short-term, policy-sensitive rates, Jefferies wrote in a recent note to clients.
The universal banks expecting a dip in 2024 NII include Bank of America (BAC), Citigroup (NYSE:C) and Wells Fargo (WFC).
BofA’s (BAC) NII, meanwhile, slipped from Q1, which management said was driven by “higher funding costs and the rotation of deposits seeking higher yield alternatives.”
seekingalpha.com - Rate cuts may impact big banks more negatively than regionals analyst saysCould this have been a consideration in Buffett’s sale of BAC?
