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BlackRock's Larry Fink sees interest rates remaining higher for longer

BlackRock's Larry Fink sees interest rates remaining higher for longer

Fink doesn't expect a "big recession", but warns of money leaving the banking system

Anna Lad & Robert Baron
April 14, 2023

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Banking News

Larry Fink, BlackRock chairman and CEO, joins 'Squawk on the Street' to discuss money leaving the banking system in to the capital markets, changing payments with digitizing currency, and interest rates remaining higher for longer.

Epstein’s Crimes Known to JPMorgan Executives

According to recently unsealed documents, JPMorgan Chase executives, including CEO Jamie Dimon, allegedly knew about former client Jeffrey Epstein's suspicious activities for years. The documents, part of a 2019 lawsuit against the bank, suggest that officials ignored red flags and allowed Epstein to move millions of dollars through accounts linked to his alleged sex-trafficking activities. JPMorgan is now facing renewed scrutiny over its relationship with Epstein, who died by suicide in jail in 2019.

In an ongoing lawsuit between the U.S. Virgin Islands (USVI) and the bank, USVI accused Dimon of being “personally involved both in decisions to retain Epstein's accounts in the face of acknowledged high-risk activity.”

Retiring Executives Shake Up U.S. Bank

Two senior executives at Minnesota-based U.S. Bank will retire in the summer of 2023. In midsummer, the current vice chair and chief administrative officer, Kate Quinn, will be replaced by Terry Dolan, the current CFO.

U.S. Bank's vice chair of corporate and commercial banking, Jim Kelligrew, will have his position filled by Gunjan Kedia. Officials promise that the change won't affect existing plans and campaigns.

Credit Union News

Southern CUs Foster Financial Growth

The Southeastern Credit Union Foundation (SECUF) has launched the “Growth and Impact Grant Program” to offer emergency support to CUs and their members during financial hardship. The program will provide grants to CUs serving low- and moderate-income communities. SECUF will allocate $80,000, aligning with its mission to promote financial wellness.

SECUF's director Bobbi Grady said:

We are thrilled to launch the Growth and Impact Grant Program…we believe this program will help credit unions enhance their communities and drive credit union philanthropy in the Southeastern region.

Bobbi Grady

CUNA Report Predicts Lower 2023 Lending

Lending is expected to slow down throughout 2023, while the pace of new credit union memberships slowed in January, according to a Trends Report from CUNA Mutual. The report suggests that loan growth is likely to be constrained by slow economic recovery, inflation, and rising interest rates. However, credit union membership is expected to remain strong, despite the slowdown in growth.

Financial Services & Blockchain

More Lending Opportunities for Fintechs

A moratorium on the four-decade ban on "nonbank lenders" in the Small Business Administration's (SBA's) 7(a) loan program will mean fintechs get an opportunity to become Small Business Lending Companies (SBLCs). The move comes as part of an effort to reach more borrowers in communities with insufficient resources.

British fintech Funding Circle supported the SBA's move:

This is an opportunity for the more than 8,000 community banks and credit unions that don't offer 7(a) loans to partner with fintech lenders to offer affordable loans quickly in underserved communities."

Funding Circle

Man Charged in CashApp Founder’s Murder

IT worker Nima Momeni was charged with the San Francisco murder of Bob Lee, the founder of CashApp and Chief Product Officer of MobileCoin. Motives have yet to be determined, but police report that the men knew each other and were driving together before the fatal stabbing.