The hottest Banking Substack posts right now

And their main takeaways
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Why small developers are getting squeezed out of the housing market

Noahpinion β€’ 11588 implied HN points β€’ 02 Mar 24
πŸ’Ό Business Real Estate Finance Development Affordable Housing Banking
  1. Traditional banks aren't willing to take on the risks associated with financing small real estate development projects due to the complex and risky nature of construction work.
  2. Small developers struggle to access financing from traditional lenders because they lack the track record and financial resources required to secure loans, creating a barrier to entry in the industry.
  3. Institutionalization of real estate development by large firms can lead to a loss of community identity, charm, and personalized building designs, highlighting the importance of supporting small developers in creating unique and vibrant neighborhoods.

Rich businessmen have remembered they're Republicans

Slow Boring β€’ 5051 implied HN points β€’ 25 Jan 24
πŸ‡ΊπŸ‡Έ U.S. Politics Regulation Banking Election Policy Business
  1. Biden administration announced new regulatory caps on overdraft fees to protect consumers from financial exploitation.
  2. CEOs like Jamie Dimon are more concerned with business-friendly regulations for profit than political ideologies.
  3. The Biden administration's stance on bank regulation highlights a shift in priorities from the Trump era.

Weekend thoughts follow up: $NYCB insider buying and mea culpa

Yet Another Value Blog β€’ 1395 implied HN points β€’ 10 Feb 24
πŸ’° Finance Investing Banking Stocks Economy Insider trading
  1. The loan book for NYCB is in worse shape than expected, potentially facing huge losses due to rent-regulated properties and increasing expenses.
  2. Despite the challenges, NYCB has over $7 billion in tangible equity, which could help the bank navigate through the crisis.
  3. Insider buying at NYCB following a special update call shows confidence in the institution, highlighting efforts to stabilize the stock amid a tough situation.

The Deposit Myth

Altered States of Monetary Consciousness β€’ 481 implied HN points β€’ 08 Mar 24
πŸ’Ό Business Banking Economics Finance Education
  1. When it comes to 'bank deposits', the traditional verb-noun pairing can be misleading. The term 'deposit' typically implies something being put in, but with banks, it refers to something issued out by the bank like digital casino chips.
  2. Comparing banks to casinos can help understand the concept better. When you 'deposit' cash in a bank, it becomes their asset, and you receive digital chips as a liability. This is opposite to the usual understanding that a deposit is something put in the bank.
  3. The language around 'bank deposits' can create misunderstandings, especially in economics. An update in how we define and understand 'bank deposits' can help clear up these misconceptions and align with the actual operations involved.
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❄️ πŸ’³ Prime et Netflix gratuits ? Tinder Gold et 3 pass WeWork offerts ?

Snowball β€’ 1395 implied HN points β€’ 09 Jan 24
πŸ’° Finance Credit Cards Investing Fintech Rewards Banking
  1. Some credit cards offer unique benefits like free Amazon Prime or cashback in the form of investments.
  2. Revolut cards come with various advantages based on the subscription level, like free currency exchange or cashback on accommodations.
  3. American Express cards provide a range of benefits, from purchase guarantees to access to exclusive events. The higher-tier cards offer even more luxurious perks like worldwide lounge access.

Fighting The Fed

Points And Figures β€’ 426 implied HN points β€’ 27 Feb 24
πŸ’° Finance Markets Investing Economics Trading Banking
  1. Interest rate futures, including SOFR and Fed Funds, are indicating market expectations of rate cuts by the Federal Reserve by the end of the year.
  2. The author predicts that the Federal Reserve will not lower rates in 2024 due to concerns about inflation and unemployment.
  3. Considering predictions about the Fed and interest rates, strategies like buying real estate without waiting for lower rates, buying out-of-the-money puts, and playing butterfly spreads are suggested.

The Hidden Bank Panic

The Dollar Endgame β€’ 259 implied HN points β€’ 12 Mar 24
πŸ’° Finance Banking Economy Regulations Capital Assets
  1. Institutions are requesting the Fed to exclude Treasuries from their leverage ratios post the Bank Term Funding Program, which is causing concern within the financial industry.
  2. Capital requirements in banks are crucial for preventing insolvency, with risk-based and leverage ratios being the two main types of requirements.
  3. Leverage ratios do not consider the risk levels of assets and require banks to maintain a specific ratio of capital to assets, helping ensure financial stability.

Regional Banking Fear Is Back & Correlations Are Destroyed: TBL Weekly #79

The Bitcoin Layer β€’ 550 implied HN points β€’ 03 Feb 24
πŸ’° Finance Banking Economy Bitcoin ETFs Market Analysis
  1. Regional banking sector is facing fear and challenges with toxic assets and credit exposure.
  2. US commercial banks are experiencing a credit problem due to underperforming commercial real estate.
  3. Market participants are struggling with shattered historical correlations and uncertainty regarding the Fed's reaction function.

CFPB Proposes Rule To Close TILA Overdraft "Loophole"

Fintech Business Weekly β€’ 661 implied HN points β€’ 21 Jan 24
πŸ’° Finance Regulation Banking Investing Fintech Economics
  1. CFPB proposed a rule to close the TILA overdraft loophole, aiming to protect consumers from billions in junk fees.
  2. The proposed rule would require large banks to treat overdrafts like credit products, disclosing APRs and considering actual costs.
  3. Exempting banks under $10 billion in assets from the rule has sparked debate, highlighting the complexity of regulating banking fees.

Shades of 2008?

The Dollar Endgame β€’ 239 implied HN points β€’ 29 Feb 24
πŸ’° Finance Real Estate Banking Market Trends Risk management
  1. The commercial real estate market is facing challenges due to decreased demand for office and retail spaces, leading to increased vacancy rates.
  2. Approximately $1.2 trillion of commercial real estate debt in the US is set to mature within the next two years, posing risks for banks and investors.
  3. There are concerns of a commercial real estate crisis resembling the 2008 financial crisis, with warning signs evident in the US, Europe, and Asia.

Money Market Update

Concoda β€’ 286 implied HN points β€’ 20 Feb 24
πŸ’° Finance Markets Investing Banking Economics Money
  1. Dollar liquidity remains high with low failures to deliver, stable bond volatility, tight dealer repo spreads, and tightening cross-currency bases
  2. Changes in the Fed's rescue mechanism are upcoming, as discussed in a recent post by Concoda
  3. Exploration of the transformation in the repo market and its potential impact on other dollar markets

JPM, Stifel, & Lead Bank Join As Speakers at Newcomer Banking Summit

Newcomer β€’ 353 implied HN points β€’ 09 Feb 24
πŸ’Ό Business Banking Startups Venture Capital Financial Technology
  1. JPM, Stifel, and Lead Bank will be speaking at the Newcomer Banking Summit on March 14 in San Francisco.
  2. The event will feature speakers like Jackie Reses, Melissa Smith, and Matt Trotter.
  3. The summit will delve into the impact of the Silicon Valley Bank crisis, the changing landscape of banking for startups, and the future of financial technology companies and banks.

β„οΈπŸ’– 380 ans d'utilitΓ© publique. Un coup de cΕ“ur.

Snowball β€’ 471 implied HN points β€’ 23 Jan 24
πŸ’° Finance Investment Personal Finance Banking Financial Services
  1. Learn about the CrΓ©dit Municipal de Paris, an institution with over 380 years of history providing various financial services.
  2. The CrΓ©dit Municipal offers services such as quick loans against valuable items, financial counseling, auctions, and ethical savings options.
  3. The institution aims to innovate and modernize its services, while maintaining a focus on social impact and financial empowerment.

The Fed Is Planning To Force Healthy Banks Into Loans They Don't Need: TBL Weekly #77

The Bitcoin Layer β€’ 491 implied HN points β€’ 20 Jan 24
πŸ’° Finance Banking Economics Investing Markets Crypto
  1. The Fed is planning to normalize banks tapping into emergency loans, even if they're healthy.
  2. Consumer sentiment is high due to expectations of falling inflation and interest rates.
  3. Loan activity from US commercial banks suggests a return to normalcy with anchored inflation expectations.

The debt explosion: How neoliberalism fuels debt crises

Geopolitical Economy Report β€’ 558 implied HN points β€’ 13 Jan 24
πŸ’° Finance Debt Neoliberalism Economy Commercial Real Estate Banking
  1. Debt has surged globally due to neoliberal economics, leading to countless crises.
  2. The Federal Reserve's actions focus on bailing out the financial sector, even when it doesn't benefit the economy at large.
  3. The US economy is heavily dominated by finance, insurance, real estate, military, pharma, and tech sectors, all characterized by high levels of monopoly and rent-seeking behaviors.

Asian Financial Crisis Redux

The Dollar Endgame β€’ 199 implied HN points β€’ 21 Feb 24
πŸ’° Finance Markets Economy Policy Banking
  1. The Chinese yuan is weakening, reaching its lowest level against the dollar in a while. China taking measures like reducing the five-year loan prime rate to stimulate credit demand and revive the property market.
  2. Economists were surprised by the significant decrease in the reference rate by China, indicating the most substantial cut since its introduction in 2019. China is facing challenges from a property crisis, falling consumer confidence, and increasing deflationary pressures.
  3. China's central bank has been injecting liquidity into the financial system consistently through measures like reducing the reserve-requirement ratio for lenders and implementing regulations to support the yuan. The recent net injection of 1 billion yuan aims to maintain balanced liquidity post the Lunar New Year holiday.

Banks banks banks (redux)

Yet Another Value Blog β€’ 1022 implied HN points β€’ 23 Oct 23
πŸ’° Finance Banking Investing Economics Markets Earnings
  1. If you're looking at banks below tangible book value, you don't need to worry much about hidden disasters on their balance sheets.
  2. Even though there are concerns like a potential commercial real estate crisis or a recession, banks seem well-prepared and overcapitalized.
  3. Rising interest rates could actually make banks more profitable due to their interest rate sensitivity.

SVB's Demise: The Hidden Cost of Overcharging in the Competitive Banking Landscape

Five Links (and three graphs) by Auren Hoffman β€’ 1638 implied HN points β€’ 17 Aug 23
πŸ’Ό Business Banking Competition Monopoly
  1. Silicon Valley Bank collapsed due to overcharging customers, not a classic bank run scenario.
  2. SVB's business model relied on overcharging depositors, which led to customers seeking better deals elsewhere.
  3. In competitive industries like banking, overcharging customers is a risky game that can lead to loss of business and eventual downfall.

CBW Bank, A BaaS Pioneer, Is Up For Sale: Exclusive

Fintech Business Weekly β€’ 59 implied HN points β€’ 17 Mar 24
πŸ’Ό Business Fintech Banking Regulation Innovation Sales
  1. CBW Bank, a pioneer in Banking-as-a-Service, is up for sale, showing continued challenges in bank/fintech partnerships.
  2. CBW Bank grew significantly under new ownership, focusing on innovation and providing API access for startups and banks to build digital banking solutions faster.
  3. Regulatory shifts and challenges in innovation may have led to CBW's decision to sell, highlighting the impact of changing regulatory attitudes on banks like CBW.

Stuffing the Coffers

The Dollar Endgame β€’ 279 implied HN points β€’ 19 Jan 24
πŸ’° Finance Banking Regulation Economy Federal Reserve Financial Crisis
  1. Regulatory changes post-2008 require banks to hold more US Treasuries. However, banks are running out of space and time.
  2. The Fed made an exemption of Treasury bonds from the Supplementary Leverage Ratio (SLR) to boost lending and stabilize markets during the COVID-19 crisis.
  3. The SLR calculates a bank's solvency by dividing Tier 1 Capital against assets. Adjustments during crises help banks manage potential losses better.

Leaked Treasury Prime Docs Show Risks Of BaaS Business: Churn, Concentration, Slowing Growth

Fintech Business Weekly β€’ 89 implied HN points β€’ 03 Mar 24
πŸ’° Finance Fintech Banking Regulations Business Models Risk management
  1. Leaked Treasury Prime documents highlight risks in Banking-as-a-Service business, including issues like churn, concentration, and slowing growth.
  2. Treasury Prime's strategic pivot to focus on selling to banks instead of fintechs resulted in drastic employee layoffs, shedding light on the challenging environment for middleware platforms in fintech.
  3. Fintech companies like Chime and Green Dot facing regulatory actions and penalties underscore the importance of compliance and customer service in the financial industry.