Jerry Braakman, president and chief investment officer of First American Trust, spells out why the U.S. regional-banking turmoil isn't likely to be contained.
Regional-banking woes, which resurfaced after a massive $100 billion drop in deposits announced by San Francisco’s First Republic Bank earlier this week, have further room to run.
That’s according to Jerry Braakman, president and chief investment officer of Santa Ana, California-based First American Trust, a subsidiary of First American Financial Corp. FAF . First American Trust is a federal savings bank that invests primarily in government-sponsored enterprises, and doesn’t originate any personal, commercial or real-estate loans. Its wealth management side oversees $2.3 billion in assets.
“Further we are seeing bank deposit levels continue to shrink across the industry. This will hamper loan growth as banks have less deposits to lend.”
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