Market Intelligence

Banks Everywhere Could Feel Federal Job Cuts

Fallout from President’s Trump’s push to downsize the federal government payroll will likely be felt most acutely by banks in the Washington, D.C. area, but the impact could stretch much further than that. U.S. Bureau of Labor Statistics data shows that Maryland, Virginia and the District of Columbia hosted a combined 552,600 federal employees as of January. That’s a large number, to be sure, but amounted to just 18.3% of the government’s total employment. The other roughly 81.7% of 3 million federal jobs were spread across the country, with California (253,400) and Texas (228,800), the two most populous states, hosting…

Maturing CDs Could Lower Funding Costs

A whopping 87.2% of the certificates of deposit on bank balance sheets at the beginning of the year will mature in 2025, according to S&P Global Market Intelligence, the highest percentage in at least a decade. That could dovetail nicely with recent Federal Reserve rate cuts to shrink deposit funding costs and give margins a boost at a time when loan loss provisions and other headwinds threaten to drag down earnings. CDs are short term in nature, so there’s traditionally a lot of turnover from year to year. But banks have relied on them more in recent years, and the…

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WRITTEN BY

John Engen

Contributing Writer

John Engen is a contributing writer for Bank Director. He has more than 30 years of experience as a business journalist, writing for a variety of newspapers and magazines, and was a foreign correspondent for the Associated Press. He graduated with a degree in economics and international relations from the University of Minnesota and did his post-graduate work in Asian studies at the University of Hawai’i.