Goldman Sachs Group (GSG) slashed its U.S. GDP forecast and warned of an economic hit from recent bank failures.
The investment bank raised its estimate of the odds of an American recession on March 15, to 35 percent over the next 12 months due to increased concern over the economic impact of stress in the banking sector.
GSG warned of a cascade of effects throughout the economy in the aftermath of the collapse of Silicon Valley Bank and Signature Bank last week, the second- and third-largest bank failures in the U.S. history, respectively, only behind the collapse of Washington Mutual in 2008 during the during the financial crisis….