US banks insulated from AI data centre downturn
Analysts say tougher underwriting standards adopted since the global financial crisis will enable Wall Street banks to weather a sharp reversal in the AI boom, following a challenging week for tech stocks.
US banks insulated from AI data centre downturn - The Banker
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Banking marketsJuly 21
US banks insulated from AI data centre downturn
Analysts say Wall Street has tougher underwriting after the subprime debacle 20 years ago
by Michael Klimes
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© Bloomberg
Tougher underwriting standards adopted since the global financial crisis will enable banks to weather a sharp reversal in the AI boom, according to analysts, following a challenging week for stocks connected to the technology.
Global share indices fell in the second half of last week over concerns about the sustainability of this year’s AI-driven rally, with some traders unwinding leveraged bets that have been magnified by using substantial amounts of debt.
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Michael Klimes is the investment banking and capital markets editor at The Banker. He joined the publication from Money Marketing where he was acting editor. He wrote about pensions for nine years on the retail and institutional side. He won B2B pensions journalist of the year at the Headline Money Awards 2022.
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