C-Suite Wednesday – Historical Rate Hikes Occur Abruptly

April 26, 2023

Delaney Sexton

Contributing Editor

C-Suite Wednesday – Historical Rate Hikes Occur Abruptly

Gray indicates periods of recession

Jon Winick, CEO of Clark Street Capital held a webinar, “Balancing Act: Bank Risk Management During GFC 2.0”, produced by Coleman Publishing. Guests Umrai Gill, Jim McAlpin, and Josh Siegel joined to talk about the current state of the banking industry.

A common criticism of the Feds is that they increased the rates rapidly. Josh Siegel, CEO of StoneCastle, rebuts this argument, citing historical rate increases.

“You can see the magnitude of interest rate moves,” says Josh Siegel. “This is not a new concept, rates moving meaningfully in a short period of time, nor is this current move the largest move that you can see in a short period of time.”

The worst example of sharp rate increases was at the end of the 1970s into the 1980s when short term rates reached over 20%. This can be attributed to banks not being held accountable to the extent of current regulations.

“When they move, they move quickly, and this is not the first time it has moved to this magnitude even in modern history.”

Watch the full webinar here.

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