The David Lin Report How Close Are Banks To Another 2008? Expert Reveals 'Pendulum Swing' | Christopher Wolfe
Aug 21, 2025
Christopher Wolfe, Managing Director at Fitch Ratings, explores the evolving landscape of the U.S. banking sector, shaped by deregulation from the Trump administration. He highlights the risks associated with stablecoins as alternatives to traditional banking deposits. Wolfe discusses how non-bank lending is on the rise and assesses the implications for commercial real estate. He also dives into how interest rates are driving banks to adapt to regulatory changes, particularly with cryptocurrencies, illustrating the delicate balance needed in oversight.
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Regulatory Pendulum Swing
- Fitch sees a regulatory "pendulum swing" after the election, reversing many Biden-era banking rules.
- Christopher Wolfe warns the shift materially changes banks' strategic and risk landscapes.
Multiple Deregulation Fronts
- The Trump administration is easing crypto, consumer protection, prudential and climate rules affecting banks.
- Wolfe lists relaxed supplementary leverage ratio and reduced CFPB and climate pressures as key reversals.
Watch Capital Uses Closely
- Fitch warns that lower capital buffers plus increased risk-taking may pressure bank credit profiles.
- Monitor banks' dividend and buyback activity because it can erode loss-absorbing capital.