Interest rate hikes by key central banks around the world and tightening credit conditions will put pressure on U.S. regional banks’ capital, credit quality, and profitability. Globally systemically important banks (G-SIBs) are benefiting from the diversity of business lines they have, as well as from the various sources of funding they can access. However, many regional banks, by definition, do not have the asset diversity and funding advantages that G-SIBs enjoy. Read more … [Read more...] about Regional Bank Turmoil In The U.S. Is Far From Over
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How Trump’s Deregulation Sowed The Seeds For Silicon Valley Bank’s Demise
Every couple of years lenders and traders tell me that ‘this time, it will be different.’ Silicon Valley Bank-induced chaos shows that bank deregulation always ends in the same painful way. Read More … [Read more...] about How Trump’s Deregulation Sowed The Seeds For Silicon Valley Bank’s Demise
Warning Signs At SVB May Have Been Missed Because Of Trump Era Stress Test Relaxations
Silicon Valley Bank’s demise has led many pundits to blame rising interest rates, panicked depositors, bank regulators, and rating agencies. Rising rates are inanimate actors, and depositors, regulators, and rating agencies do not run banks. Read More … [Read more...] about Warning Signs At SVB May Have Been Missed Because Of Trump Era Stress Test Relaxations
Banks Earnings Season Starts Next Week: Remember To Breathe
Four of the United States’ largest globally systemically important banks (GSIBs) are reporting earnings this Friday, October 14th: CitigroupC -1.4%, JPMorgan ChaseJPM -0.9%, Morgan StanleyMS -0.7%, and Wells FargoWFC -0.8%. Investors, economists, and a wide range of analysts and consultants will be dissecting these banks’ earnings looking for the direction not only of banks’ financial health, but also of the American economy. Read More … [Read more...] about Banks Earnings Season Starts Next Week: Remember To Breathe
U.S. Consumer Borrowing Has Reached Record Highs
American consumers are more indebted than ever. The just recently released Federal Reserve Consumer Credit-G.19 report shows that U.S. consumer credit outstanding has reached historic levels; outstanding consumer credit is now at $4.7 trillion. In August, consumer credit increased at a seasonally adjusted annual rate of 8.3 percent. The previous rise in July had been 6.%. Read More … [Read more...] about U.S. Consumer Borrowing Has Reached Record Highs