Magazine : Archives : 3rd Quarter 2013

An Ebb Tide for Banks

Do you get the sense that over the next year we’re going to see which banks have been swimming without a bathing suit? Federal Reserve Chairman Ben Bernanke signaled recently that the central bank will soon begin to tighten its monetary policy and allow interest rates—which have been at historically low levels now for quite some time—to begin to rise. What this means for the banking industry is unclear. It will probably be a mix of good and bad, although whether it’s ultimately more bad than good, or more good than bad, remains to be seen. What seems clearer to...