USB Management on Fiscal Cliff

posted in: Banking, Fiscal Cliff, USB | 0

US Bank management thoughts on consumer credit impact of the fiscal cliff, from 3Q Earnings call:

P. W. Parker РChief Credit Officer and Executive Vice President

Well, if the worst case happened on the fiscal cliff, I think it’s fair to say we’d probably reenter a recession. And that would be then you’d see unemployment go up, and that would have an impact on consumer portfolio. I’m hopeful that they come to some kind of resolution, and I think the fiscal cliff was designed in such a way that it’s so severe. I think it’s unlikely that there won’t be some political solution that cuts the middle ground and mitigates that risk.