How to leave a job: Yellen bans a bank’s growth, warns of commercial RE prices

*drops mic*

New York Weekend Edition /
Feb.February 04, 2018 03:58 PM

Janet Yellen. (Credit from left: japrea/Flickr, Pixabay)

On Saturday, Federal Reserve Chair Janet Yellen was succeeded by Republican and Fed governor Jerome Powell, President Trump’s pick for the role, but that doesn’t mean she’s stopped making headlines. In fact, her last day was one for the books.

In a final interview taped Friday aired Sunday, Yellen contemplated whether the American commercial real estate market was in a bubble.

The market’s prices are “quite high relative to rents,” she said in the interview which aired on CBS’s “Sunday Morning” show. “Now, is that a bubble or is it too high?” she said to CBS. “It’s very hard to tell. But it is a source of some concern that asset valuations are so high.”

Then, as her last act as chair, she slapped a ban on Wells Fargo late Friday after markets closed, according to Bloomberg.

The bank is now unable to grow its assets past its 2017 levels without the Fed’s permission until it has addressed internal oversights including meeting compliance standards and addressing long-standing customer abuses. The unprecedented ban left analysts in shock, though the Fed says it had been in the pipeline for awhile.

“This is akin to the last scene in ‘The Godfather,”’ said Compass Point Research & Trading’s Isaac Boltansky to Bloomberg. “Chair Yellen decided to handle unfinished business on her way out the door.”

Yellen was the Fed chair for one term and was the first woman to head the American central bank. [Bloomberg]Erin Hudson


Related Articles

arrow_forward_ios
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
Empire Capital Holdings' Josh Rahmani, Hakimian Capital's Michael Hakimian, RXR's Scott Rechler and 1330 6th Avenue (Getty, Hakimian Capital, Empire Capital Holdings, 1330aofa.com)
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
From left: Federal Reserve chair's Jerome Powell and Starwood Capital Group's Barry Sternlicht (Getty)
Barry Sternlicht calls Fed’s actions “suicide”
Barry Sternlicht calls Fed’s actions “suicide”
Urban Commons' Salvatore G. Takoushian with Wagner at the Battery
Urban Commons puts FiDi hotel into bankruptcy
Urban Commons puts FiDi hotel into bankruptcy
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...