Wells Fargo's Mike Mayo predicts that banks will thrive during this recession because of higher rates.

Mike Mayo, Wells Fargo senior analyst, joins the 'Halftime Report' to discuss his call for banks after earnings. For access to live and exclusive video from CNBC subscribe to CNBC PRO:  » Subscribe to CNBC TV:  » Subscribe to CNBC:  Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30:  Connect with CNBC News Online Get the latest news:  Follow CNBC on LinkedIn:  Follow CNBC News on Facebook:  Follow CNBC News on Twitter:  Follow CNBC News on Instagram:  #CNBC #CNBCTV...(read more)

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According to Mike Mayo, a banking analyst at Wells Fargo, the current economic recession may actually benefit banks due to higher rates. Mayo has predicted that this will be the best recession for banks in decades due to the potential for higher interest rates. One of the main reasons for this prediction is the Federal Reserve's decision to cut interest rates to zero in response to the pandemic. Mayo believes that as the economy recovers and the Federal Reserve raises rates, banks will benefit from the higher interest rates on loans and deposits. In addition, Mayo notes that banks have been able to build up their capital reserves during the past decade since the financial crisis. This means that they are better able to withstand economic shocks, such as the current recession. Mayo also points out that many banks have already implemented cost-cutting measures to improve their profitability, including layoffs and branch closures. These moves should help to offset any potential losses from loan defaults during the recession. Mayo's prediction has raised eyebrows among some economists, who argue that the recession will have a damaging impact on banks. They point out that a sharp rise in loan defaults could wipe out any potential gains from higher interest rates, and that low interest rates could actually hurt banks' profitability by reducing the spread between loan and deposit rates. Despite the concerns, Mayo is confident in his prediction. He notes that banks have been through many economic cycles in the past, and have always managed to emerge stronger. Mayo's analysis is based on a long-term view of the banking industry, and he believes that banks are well-positioned to weather this recession and emerge even stronger. Overall, Mayo's analysis suggests that banks may be better positioned than many people think to weather the current recession. While there are risks and challenges ahead, the industry has already taken steps to address them, and they may even benefit from the shifts in the economy. Only time will tell if Mayo's predictions come true, but for now, his analysis is providing a ray of optimism in uncertain times. https://inflationprotection.org/wells-fargos-mike-mayo-predicts-that-banks-will-thrive-during-this-recession-because-of-higher-rates/?feed_id=91281&_unique_id=6447c8b20975e #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #businessnews #cable #cablenews #CNBC #FastMoneyHalftimeReport #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews #RecessionNews #breakingnews #businessnews #cable #cablenews #CNBC #FastMoneyHalftimeReport #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #stockmarket #stockmarketnews #Stocks #usnews #worldnews