Opinion

The FOMC is likely to raise rates twenty-five basis points to a range of 5.0%-5.25%; this would put rates at about a 16-year high. This level of rate rises has been an unpleasant surprise for many consumers and unfortunately, even bank risk managers. Read more … [Read more...] about The Federal Reserve’s Interest Rate Increases Create Default Risks In Major Sectors

First Republic Bank is dead! Long live JPMorgan! JPMorgan's acquisition makes it the most globally systemically important bank (G-SIB) in the U.S. and number five globally only after the four Chinese G-SIBs. Read more … [Read more...] about With First Republic Takeover, JPMorgan Is America’s Most Globally Systemically Important Bank

Like in Rashomon, Akira Kurosawa’s seminal film, we have heard the story of Silicon Valley Bank’s demise from many perspectives. However, we have yet to hear from the responsible actors in this saga: Silicon Valley Bank’s former Chief Executive Officer Greg Becker and SVB’s Board of Directors. Read more here. … [Read more...] about Former Silicon Valley Bank CEO Greg Becker Should Testify Before Congress

Few things inspire less confidence in investors and analysts than to tell us that you will not be giving earnings guidance about the future and that you will not be taking any questions. Read more here … [Read more...] about First Republic Bank Did Not Inspire Confidence in Earnings Call

First Republic Bank's stock price has plummeted 87% since March 8, when the market learned of Silicon Valley Bank’s impending demise. This is not just a case of contagion. Read more here … [Read more...] about First Republic Bank’s Financial Ratios Will Reveal Serious Trouble