On Friday, JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) all reported quarterly results that topped analyst estimates. Whalen Global Advisors Chairman Richard Christopher Whalen tells Yahoo Finance Live there are two key takeaways from the reports. First, Whalen notes that the growth in the costs of deposits slowed down. Second, Whalen says that "credit is basically flat...because frankly the consumer is still okay."
Whalen also discusses the impact of regulation, something JPMorgan Chase CEO Jamie Dimon warned about in his company's earnings release, saying "material regulatory changes would likely have real world consequences for markets and end users." Whalen says that additional regulation will likely force some consolidation among smaller and mid-sized banks because "some banks are going to be better at readjusting their balance sheet than others, and the ones that don't move quickly are going to get sold."
In the interview, Whalen also previews what investors can expect from Goldman Sachs (GS) and Morgan Stanley (MS) and how commercial real estate is a "chopped salad" for banks.
Key video moments
00:01:04 Whalen's key takeaways
00:03:36 How smaller banks will be impacted by new regulations
00:05:05 Impact of commercial real estate woes on banks
00:08:00 What to expect from Goldman Sachs and Morgan Stanley
