Financials Up After Fed Minutes -- Financials Roundup
|04/07/2021 | 05:31pm|
Shares of banks and other financial institutions rose slightly after the release of minutes from the Federal Reserve's latest meeting.
The Fed forecast strong U.S. economic growth and indicated it would keep policy unchanged for the near future.
A couple of Fed officials at the March meeting expressed worry that "highly accommodative financial conditions could lead to excessive risk-taking and the buildup of financial imbalances."
Credit Suisse shares fell as investors reflected on the multibillion-dollar hit to the Swiss bank's earnings from its exposure to the collapse of family-office hedge fund Archegos Capital Management.
One strategist said Wall Street remains on edge after the rapid unravelling of the multibillion dollar-Archegos trades. "The question always is and always has to be: 'is there another one waiting,'" said Quincy Krosby, chief market strategist at Prudential Financial. "We don't know ... when you have an environment with easy money, rampant liquidity, where you can win very easily ... you do have to ask, 'who's going to be next?'"
Speaking at a legal conference, Securities and Exchange Commission official John Coates said there are "some significant and yet undiscovered issues" with SPACs, which allow private companies to go public with a structure that offers outsize potential rewards to backers while bypassing some safeguards of a traditional initial public offering.
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(END) Dow Jones Newswires