The Regulators Are Aware of the Risks of Bankruptcy

J.P. Morgan CEO Richard Handler: Banks were hoping to see net interest margins expand, but what they've seen is rapid shrinkage in deposits as rates have moved up so rapidly. He says regulators now are acutely aware of these risks and that if things get worse from here there will be additional regulatory responses. Gallagher: We certainly think there is value emerging in some of the super regional banks. But at this stage it's just very difficult to calibrate what that means for the return on equity profile for some of those banks.