Steve Eisman Dismisses 2008 Comparisons After Bank Earnings: 'Only Marginal' Credit Deterioration So Far, Not Enough To Raise Alarm Bells

InvestorSteve Eisman, who famously predicted and bet against the 2008 financial crisis, is pushing back against fears of it repeating following recent bank earnings reports last week.‘Only Marginal’ Credit DeteriorationOn The Real Eisman Playbook podcast on Saturday, Eisman discussed the credit quality issues and deteriorations showcased in recent bank earnings reports last week.“Yes, there are signs of credit deterioration on the commercial side,” Eisman said, “but not enough to actually cause a recession or indicate that a recession is about to occur.”See Also:Regional Banks Notch Best 2-Day Rally Since Trump’s Election WinBank earnings fromJPMorgan Chase & Co.(NYSE:JPM),Citigroup Inc.(NYSE:C),Wells Fargo & Co.(NYSE:WFC), and others revealed mixed trends in commercial credit.“There was some deterioration on the edges, but not enough to raise real alarm bells,” Eisman said. He pointed to nonaccruals at JPMorgan rising 33% year-over-year and Citigroup up 119%, while banks like Wells Fargo, Bank of America and PNC showed year-over-year declines.Contrasting today’s environment with that leading up to the 2008 crisis, Eisman said, “The great financial crisis was different,” noting that underwriting standards at the time had deteriorated to such an extent that “people who should never have been given loans were swimming in them.”He concluded by saying, “Right now, I think we are in a normal cycle.”Credit Concerns Resurface Among Regional BanksWhile most of the big banks posted strong quarterly performances last week, there are growing concerns regarding thecredit quality of the small regional banks.Utah-headquarteredZions Bancorporation NA(NASDAQ:ZION) reported a $50 million charge-off during the third quarter related to its commercial and industrial loans, with losses amounting to $60 million. The stock dropped 12% following the announcement.This was followed byWestern Alliance Bancorp(NYSE:WAL), which dropped alongside Zion after revealing that it had filed a lawsuit against a borrower for fraud.JPMorgan Chase’s CEOJamie Dimoncaused further unease when he warned of rising credit risks during the company’sthird-quarter earningscall last week. Dimon said, “When you see one cockroach, there’s probably more,” referring to the recent bankruptcies ofTricolor Holdings, a subprime auto lender, andFirst Brands, an auto parts manufacturer.Shares of JPMorgan Chase & Co. were down 0.33% on Friday, ending the week at $297.56, and are currently up 0.32% in overnight trade. The stock scores high on Momentum and Growth inBenzinga’s Edge Stock Rankings, with a favorable price trend in the medium and long-term. Clickherefor deeper insights on the stock, its peers and competitors./ Andrii YalanskyiLoading...Loading...Read More:Jamie Dimon Says You Can’t Look At AI As A Bubble: ‘People Should Stop…’CCitigroup Inc$97.300.24%OverviewJPMJPMorgan Chase & Co$299.550.67%WALWestern Alliance Bancorp$72.48-%WFCWells Fargo & Co$83.850.68%ZIONZions Bancorp NA$49.850.36%Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .Add Comment|1Posted In:NewsFinancingJamie DimonSteve Eisman