Don't Expect Profit to Soar at U.S. Banks After Fed Raises Rates
- Earnings may disappoint if long-term rates don't also rise
- `It's not going to be the barn-burner people want it to be'
Is the Fed Rate Hike a Good Thing?
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John Kanas wants to be clear: Investors need to lower their expectations that higher interest rates will translate quickly into fatter bank profits.
“Pundits, and the market itself, are drastically oversimplifying the thesis,” Kanas, chief executive officer of Miami Lakes, Florida-based BankUnited Inc., said in an interview, recounting a message he gave to two dozen investors at a Boston luncheon this month. “This may not be the big holiday and celebration that people think.”