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

Mic drop

TRD New York /
Feb.February 04, 2018 05:00 PM

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

Yesterday, 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 today, 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
4238-4276 Northwest 7th Street in Miami, Avison Young’s Michael Fay, John Crotty, David Duckworth, Brian de la Fé, Emily Brais and Berkley Bloodworth

Mixed-use Le Jeune Road dev site heads to market for $17M

Mixed-use Le Jeune Road dev site heads to market for $17M
Vlad Doronin, Len Blavatnik, and 3425 Collins Avenue (Credit: Google Maps, Gesi Schilling, and Mark Neyman / GPO)

Developer of Aman-branded towers in Miami Beach scores $35M loan

Developer of Aman-branded towers in Miami Beach scores $35M loan
Rendering of 57 Ocean and Marcelo Kingston (Credit: DBOX)

57 Ocean in Miami Beach scores $59M construction loan

57 Ocean in Miami Beach scores $59M construction loan
JPMorgan Chase CEO Jamie Dimon (Credit: Win McNamee/Getty Images, Google Maps, iStock)

JPMorgan Chase buys own branch in West Palm

JPMorgan Chase buys own branch in West Palm
South Florida lenders and landlords battle new coronavirus reality

South Florida lenders and landlords battle new coronavirus reality

South Florida lenders and landlords battle new coronavirus reality
Moishe Mana and 25 West Flagler Street

Moishe Mana buys City National Bank building in downtown Miami

Moishe Mana buys City National Bank building in downtown Miami
Brickell Flatiron and Ugo Colombo

Ugo Colombo pays off $236M construction loan for Brickell Flatiron

Ugo Colombo pays off $236M construction loan for Brickell Flatiron
2965 West Corporate Lakes Boulevard and Black Creek Group CEO Raj Dhanda (Credit: Google Maps, Blue Vault)

TIAA sells Weston warehouse for $33M

TIAA sells Weston warehouse for $33M
arrow_forward_ios

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

Loading...