In the conference room, when Cummins stopped, Feng Yiping handed him a bottle of water and concluded, "So, among the four major banks, Wells Fargo, which was originally ranked the lowest, now seems to be the most risky?"

"Yes," Cummins, who said a big deal, drank half a bottle of water.

Feng Yiping couldn't help but shake his head.

He knew why Wells Fargo, which now seems to be far less powerful than Citimo Bank of America, would later become the bank with the highest market value in the United States.

And, why did ICBC, which is my great dynasty, take turns to be the throne of the world's largest bank with Fuguo? It is precisely because their interest income accounts for the majority of the total income.

For example, among Wells Fargo's total revenue last year, interest income accounted for more than 70%, while other non-interest income accounted for less than 70%.

In our general view, if a bank's main income still relies on interest, it can almost be characterized as a backward bank for inaction.

Unexpectedly, such inaction and lazy governance made them perform the best in such a crisis.

The other three companies have relatively large non-interest income, so their performance is not very optimistic at this time.

Especially Citigroup and Bank of America, which account for a high proportion of non-interest income, seem to have a very difficult life.

Compared with banks in developed countries, our four major banks happen to be such banks... We have really good luck.

If you are so lucky, it would be unreasonable if you can't rise yet.

However, it seems that our banks have done nothing during this crisis?

Even the acquisition of the National Financial Corporation, which mainly uses real estate mortgage loans in January, has not only attracted a lot of criticism from shareholders, but also caused some lawsuits by Bank of America. Later, it seemed that Merrill Lynch had taken over?

So, domestic banks have really wasted this good opportunity.

"What about the investment banks?" Feng Yiping asked again.

"I think John answers the most appropriate answer in this regard," Cummins said, pointing to John who had rushed back from New York.

John is indeed suitable to introduce this situation. This is a great man who has swept through the five major investment banks on Wall Street.

"Okay Cummins, Feng, everyone," an unknown practitioner on Wall Street, who is known to those with good news, John stood in front of the screen in high spirits. "Since Bellstone was acquired by Moto, with the efforts of the Federal Reserve, the four major investment banks on Wall Street look good,"

"But after comprehensive analysis, we believe that their problems are still very big,"

"We all know that since July last year, they have repeatedly written down losses caused by subprime mortgages, but in fact, the related losses are not the biggest problem,"

"With their strength and the size of their assets, they will bear such losses, although it will cause their performance to be ugly, but it will not affect their survival."

Of course, this time Feng Yiping took away a total of US$0 billion from the five of their families, but it did not drag down the whole family because of this.

"The main problem lies in two aspects. One is the related securities and bond markets. Now, the transaction volume is not significantly reduced, but there is no transaction volume at all."

"The bonds traded on the market now are all the most traditional fixed-interest fixed-term bonds, and most of the buyers are individual investors."

This is equivalent to a company not selling.

"The other problem is the liquidity issue,"

“Because the lending of short-term funds has almost stopped now,”

This is similar to not being able to borrow money from a bank - of course, investment banks have more financing channels than just banks.

"At the same time, a lot of the securities and bonds they hold are depreciating,"

“Considering the high leverage they have been taking for high returns, if sufficient funds cannot be raised, then many of their funds will go bankrupt next,” he said.

Speaking of this, everyone understands how the subsequent development would occur if such a situation happened.

because
Chapter completed!