After passing Fed stress tests major banks announced new capital return plans after the close Friday. Nothing too dramatic, JPM the most sizeable increase.
“When asked what capital they should be putting aside in anticipation of the coming CRE crunch that stands to dramatically impact their portfolios, Jamie Dimon replied, ‘fuck that shit, nerd.’”
Hahahaha. Tbf JPM’s CRE exposure is very much not a big deal. $200bn sounds like a lot but in the context of that balance sheet it is not. They just don’t play in office and the rest of CRE a very different story.
From late May investor day deck: www.jpmorganchase.com/content/dam/...
I think it’s a more nuanced conversation than the headlines imply. Office is a disaster but not in all markets. Retail is crazy *under* built because nobody did new dev for a decade. Multi family might be pricey but it’s cash flowy and there’s good supply dynamics down the road.
