Big bank CEO EXPOSES real-world impact of government shutdown

Economic Impact of Government Shutdown - The ongoing government shutdown, now in its 28th day, is expected to slow down the economy due to the inability to obtain necessary government approvals for various activities [2][4] - The shutdown affects a significant number of government employees, estimated at 250,000 to 300,000, who are also customers of the company [3] IPO and M&A Activity - The company had a strong third quarter with numerous IPOs and increased M&A advisory revenue, but the fourth quarter may present challenges due to the SEC being closed, hindering IPO filings [1][5] - Despite the shutdown, M&A deals continue to progress, with two deals announced recently [6] Credit Quality and Concerns - The company reports that its exposure to recent banking sector issues, including bankruptcies and fraud concerns, is not material [7][8] - Credit quality has improved post-pandemic, with charge-off rates normalizing to levels similar to 2019, which was a low point for credit costs [8][9] Private Credit Market - The rise of private credit, particularly from firms like Blackstone and Apollo, poses competitive risks to traditional banking, as many loans are now being made outside the banking system [16][17] - The company emphasizes the importance of maintaining customer relationships and providing compelling reasons for clients to choose traditional banking over private credit options [18] Regulatory Environment - The company anticipates a more favorable regulatory backdrop with the upcoming resolution of the Basel 3 endgame, which could impact capital requirements and overall banking operations [19]