The head of the Fed’s bank regulatory arm, Jon Greenlee, says that banks face big further credit losses given the outlook for production and employment. Commercial real estate is a big downside risk and sharp deterioration in credit performance in bank portfolios has been seen, the official testified before a House subcommittee.
Not sure if there is any overlap between the FOMC’s economic outlook and Greenlee’s, but he sounds quite downbeat over the outlook for the financial sector and the economy in the near-term.
