Business Frame Weekly – Deposit runs have led to the collapse of three U.S. banks this year / Washington is publicly planning for what the world could look like on June 1 if no debt-ceiling deal is in place.

Deposit runs have led to the collapse of three U.S. banks this year.

Washington is publicly planning for what the world could look like on June 1 if no debt-ceiling deal is in place.

The IRS said on Monday that it will not raise interest rates for the third quarter of this year.

In this newsletter:

• Jamie Dimon warns souring commercial real estate loans could threaten some banks
• Debt ceiling: Washington grapples with ‘hard choices’ if no deal is in place by June 1
• No Change in IRS Interest Rates for Q3 2023
• Supreme Court Says the IRS Can Secretly Obtain Your Bank Records
• JPMorgan Chase raises key revenue target to $84 billion after First Republic takeover
• ‘Don’t Miss the Next Bull Market’: Billionaire Ken Fisher Stays Heavily Invested in These 2 ‘Strong Buy’ Stocks

May 23, 2023

Jamie Dimon warns souring commercial real estate loans could threaten some banks

Deposit runs have led to the collapse of three U.S. banks this year, but another concern is building on the horizon. Commercial real estate is the area most likely to cause problems for lenders, JPMorgan Chase CEO Jamie Dimon told analysts Monday. “There’s always an off-sides,” Dimon said in a question-and-answer session during his bank’s investor conference. “The off-sides in this case will probably be real estate. It’ll be certain locations, certain office properties, certain construction loans. It could be very isolated; it won’t be every bank.”

Debt ceiling: Washington grapples with ‘hard choices’ if no deal is in place by June 1

Washington is publicly planning for what the world could look like on June 1 if no debt-ceiling deal is in place. The immediate economic effects of the first-ever true default in American history are far from clear. They are being debated as negotiators remain divided across a range of issues. Time is running low to strike a deal and then get it into law ahead of the key deadline just 10 days away. President Joe Biden and House Speaker Kevin McCarthy are meeting Monday at 5:30 pm ET for yet another round of talks.

No Change in IRS Interest Rates for Q3 2023

The IRS said on Monday that it will not raise interest rates for the third quarter of this year. Beginning on July 1, the rate for overpayments and underpayments for individuals will be 7% per year, compounded daily. Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Supreme Court Says the IRS Can Secretly Obtain Your Bank Records

The IRS has scored a win at the U.S. Supreme Court. Last Thursday, the court released its ruling in Polselli v. IRS, involving whether the agency can access bank records of a taxpayer’s relatives or associates—without notice—to help with tax collection efforts. The Supreme Court’s answer is yes. Under an existing statute, the IRS can secretly probe your bank records and potentially your relatives’ bank records without notice.

JPMorgan Chase raises key revenue target to $84 billion after First Republic takeover

JPMorgan Chase raised a key performance target on the heels of its government-brokered takeover of First Republic earlier this month. The bank will generate about $84 billion in net interest income this year, New York-based JPMorgan said Monday in slides for an all-day investor presentation. That’s $3 billion higher than guidance given in April. At the time, JPMorgan raised its net interest income outlook by $7 billion, a move that spurred JPMorgan’s biggest earnings day stock bump in 20 years.

https://finance.yahoo.com/news/don-t-miss-next-bull-141748117.html

After the bear market of 2022, the markets have made a recovery in 2023, with both the S&P 500 and, in particular, the NASDAQ showing healthy year-to-date gains. Therefore, it might be a natural instinct for investors who have nursed heavy losses to be eyeing the exit gate now that the market is rebalancing and the initial investment is back to breaking even. However, legendary investor Ken Fisher says that kind of thinking is a big mistake. “As initial bull market rallies build, investors — raw from the prior drop — sell. It feels smart,” says Fisher. But it’s the wrong move.

Random Ramblings

• More Americans are feeling lousy about their finances, Fed study finds.
• 4 things employers should know about the state of the workforce.
• Audit partners pessimistic on U.S. economic outlook
• Ramp launches broad set of AI-powered capabilities for business financial management.
• Facebook parent company fined $1.3 billion by E.U.
• Self-made millionaire says parents need to stop giving young people ‘terrible life advice’ —here are the worst 5.