Aurelia Butler

In May, the banking regulator said large U.S. lenders would bear most of the costs to replenish the fund.Here is what banks have disclosed so far:Expected Bank Estimated costs timeline to recognize costs Wells Up to $1.8 bln Will expense the entire Fargo pre-tax amount upon FDIC’s finalization of the proposal. Bank of Non-interest Cost would be recognized America expense of upon finalization of the nearly $1.9 bln proposal. Goldman About $400 mln Expense would be Sachs pre-tax recognized entirely in Group the quarter in which the rule is adopted. PNC Nearly $468 mln Would be incurred in the Financial pre-tax, or $370 quarter the FDIC Services mln after-tax finalizes the proposal. Group JPMorgan (NYSE:JPM) About $3 bln Would be recognized in Chase pre-tax the quarter in which the proposal is finalized, which is expected in the second half of 2023. Morgan About $270 mln Will recognize after the Stanley final rule is published. Truist About $460 mln Would be recognized at Financial the time the proposal is finalized and paid in eight quarterly installments beginning in the first quarter of 2024. Up May incur a Citigroup (NYSE:C) to $1.5 billion significant increase in pre-tax operating expenses if the final rule for the FDIC special assessment is enacted as proposed, which is expected before 2023 end. Source: Bank quarterly filings More

The firm increased its current-quarter real annualized GDP growth estimate to 2.5% from 0.5%, Michael Feroli wrote in a research note on Friday.”Given this growth, we doubt the economy will quickly lose enough momentum to slip into a mild contraction as early as next quarter, as we had previously projected,” the economist wrote. And while recession risks are still elevated for next year, Feroli said he expects modest, sub-par growth. Earlier this week, strategists at Bank of America (NYSE:BAC) said they no longer forecast a 2024 recession for the U.S. and increased their 2023 economic growth outlook for the country.JPMorgan’s Feroli pointed to items such as the relatively quick resolution of the debt ceiling and regulators’ implicit guarantee of bank depositors during the regional banking crisis earlier this year. Feroli said this “vastly reduced the odds of a different type of financial crisis risk, although leaving in place the chronic headwind of tighter bank credit.”The economist also cited a pickup in labor supply and hints of improving supply-side performance in second-quarter productivity data, while equity markets are looking for “further productivity gains from greater use of artificial intelligence.”Still, while a recession is no longer his base case, it could materialize if the Fed is not done hiking rates, Feroli cautioned.And he said it “probably wouldn’t take much of an upside inflation surprise for the FOMC to deliver the extra rate hike that was signaled in the June dots, with perhaps even more to come.”The U.S. will report July consumer price data on August 10. More