Weekly Global News Wrap: US banks’ profits to fall; Crypto lender Celsius goes bankrupt
And UBS appoints Iqbal Khan as head of its wealth management division.
The second quarter profits of US banks are expected to fall sharply compared to Q2 2021 on increased loan loss reserves, as banks brace for the possibility of a recession.
Analysts expect JPMorgan Chase & Co will report a 25% drop in profit on Thursday, and Citigroup and Wells Fargo to show 38% and 42% profit declines, respectively on Friday, according to Refinitiv I/B/E/S data.
Bank of America Corp, which like its peers has big consumer and business lending franchises, is expected to show a 29% drop in profit when it reports on July 18.
Crypto lender Celsius Network filed for Chapter 11 bankruptcy in New York, a month after it froze customer withdrawals.
In a statement, the embattled crypto firm said that it initiated proceedings voluntarily to get the opportunity “to stabilize its business and consummate a comprehensive restructuring transaction that maximizes value for all stakeholders."From
Swiss bank UBS has named Iqbal Khan as the sole head of its global wealth management division.
Khan will take over when co-president Tom Naratil steps down in October.
Naureen Hassan, the second-ranking officer at the New York Federal Reserve, will replace Naratil in his second role as president of UBS Americas.