X

Treasury secretary startles Wall Street with unusual pre-Christmas calls to top bank CEOs

Steven Mnuchin, U.S. Treasury secretary, spoke to the CEOs of six major banks about liquidity in an unusual move. The stock market reacted by dropping lower on Monday December 24, 2018. Credit: Andrew Harrer, Bloomberg

Treasury Secretary Steven Mnuchin startled financial analysts, bankers and economists on Sunday by issuing an unusual statement declaring that the nation’s six largest banks had ample credit to extend to American businesses and households.

Mnuchin made the statement on Twitter after calling the leaders of the six banks, seeking to address an issue that had attracted little concern ahead of the treasury secretary’s tweet.

The statement came hours before Asian markets were set to open and following a sharp sell-off that made last week the worst for U.S. markets in a decade. President Trump has been furious at the sell-off, and efforts by Mnuchin to inspire confidence in the market have so far failed.

View the complete December 23 article by Damian Paletta and Josh Dawsey on The Washington Post website here.

Data and Research Manager: