Pullback in Bank Lending Is Worrying, Guggenheim’s Schwartz Says

The recent wave of “idiosyncratic” regional bank failures is stabilizing, but a pullback in bank lending could be a cause for concern, Guggenheim Capital’s Chairman Alan Schwartz said in an interview with Bloomberg Television on Wednesday.

“What I’d worry about a little is, we do not yet know how much pressure there will be in bank lending, how much banks will have to pull back because of the duration risk they took,” Schwartz said on the sidelines of the Milken Institute Global Conference in Beverly Hills. “At the same time, that maybe monetary policy is still tightening while bank credit is tightening a lot.”