In talks with the New York Times this weekend, Bankers, managers and traders said that they felt last week with the announcement of the US government’s customs, Flashbacks from the global financial crisis 2007-08, which threw several Wall Street giants.
“It seems to be like 2008,” said Ran Zhou, a New York setting background at Electron Capital, who interrupted the weekend plans and wore a button shirt to sit in his office in Manhattan and read Chinese news sources to anticipate China’s plans.
No government assistance
What is unique about this crisis is that instead of relying on the government to help join the pieces, the financial sector sees some hope for an immediate rescue.
“Pain is self -destroyed” by Trump, said Mike Edwards, a private investor consultant who spent the weekend in talks with other investors, as of Friday night.
“You won’t learn anything from a counter,” he said in an interview on Saturday (5) from his home in Connecticut. “It’s more about what your neighbor does than the right price is.”
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Bill Ackman, a hedging background manager who is sincere in his support for Trump, made a long publication on Saturday afternoon about the beginning of the latest customs. “Why would a break have no point?” He wrote. “The risk of not doing this,” added Ackman, “is that the huge increase in uncertainty leads the economy to a potentially serious recession.”
Relief on Friday night
There were some positive points. Several banks and hedging backgrounds have pointed out that the negotiations after the price offer had occurred without any unexpected failures, despite the crazy sales.
. The bank also said it was relief after a call on Friday night with the bank’s regional managers and managers as no one could point out a specific customer in danger of immediate implosion.
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Citadel predicted ‘turmoil’
The $ 66 billion in Citadel Hedge background dealer for about a month decreased the use of leverage and other volatile negotiating instruments, as the fund’s founder Ken Griffin became increasingly convinced that Trump would cause “concern”, said two unauthorized employees and discussed the Fund’s machines.
The hedge background, which approached the collapse limit in 2008, was practically stable last week, they said.
Companies applied for bankers
In interviews, investment banks said they were flooded with calls from large companies that are willing to pay high fees for advice on how to proceed. At Banco Lazard, the message to employees would be accessible to customers, but not to offer conviction of what would happen afterwards given the enormous uncertainty at the moment.
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In fact, the real depth of the influence has not yet been established. Bank of America estimates that companies’ profits on the S&P 500 can fall into one third if retaliation levels are appointed by countries that are subject to Trump duties. But terrible evaluations can change if countries begin to close agreements with the White House that will reduce customs.
Canceled stock exchange listings
Even before the announcement of recent customs, US companies fell by 14% in the first quarter compared to last year, according to Lseg Data & Analytics. And in the middle of last week’s collapse, some of the long -awaited public offers that bankers expected to prepare the landscape for other lists have been taken or paused, including offers from Klarna and Stubhub Paygiganten, Online ticket sales operations.
Two more managers Private capital They said they hoped that market turbulence and acidic global relationships would make it more difficult for private companies such as raising money, which increases the challenges they are already facing, as a declining business market made it more difficult to return money to their investors.