Big banks will be fine, Mnuchin says

  • The U.S.'s largest banks will weather this market downturn, in contrast to their precarious state in the 2008 financial crisis, Treasury Secretary Steven Mnuchin tells CNBC.
  • "The Fed is ahead of the issues and I'm grateful," he said. "Nobody has to pull their money out of banks."
  • Yet with the Fed cutting its federal funds rate target range to 0%-0.25%, banks are tanking in trading today. Also yesterday, eight big banks suspended buybacks for H1 2020. Financial Select Sector SPDR ETF (NYSEARCA:XLFdeclines 9.5% in late morning trading in New York.
  • Citigroup (NYSE:C) skids 14%, JPMorgan Chase (NYSE:JPM) down 12%, Bank of America (NYSE:BACoff 12%.
  • The federal government is focusing on stimulus for small businesses, Mnuchin said. “Liquidity for small businesses is chief priority... restaurant and bar owners, for example — we’re trying to get money to them to tide them over.”
  • ETFs: XLF, FAS, FAZ, VFH, UYG, FNCL, BTO, IYF, IYG, FINU, FXO, RYF, SEF, FINZ, RWW, BNKU, BNKD

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