The hottest Banking Substack posts right now

And their main takeaways
Category
Top Finance Topics
Noahpinion β€’ 11588 implied HN points β€’ 02 Mar 24
  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.
Slow Boring β€’ 5051 implied HN points β€’ 25 Jan 24
  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.
The Transcript β€’ 79 implied HN points β€’ 07 Oct 24
  1. The Federal Reserve is not rushing to cut interest rates anytime soon. They want to see more economic data before making any decisions.
  2. Many experts believe that the market may be expecting interest rate cuts too soon and that any drops in rates won't happen as fast as people think.
  3. Overall, the economy shows signs of strength with stable hiring and positive corporate earnings, making it unclear if rate cuts are actually needed right now.
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Yet Another Value Blog β€’ 1395 implied HN points β€’ 10 Feb 24
  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.
Snowball β€’ 1395 implied HN points β€’ 09 Jan 24
  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.
Chartbook β€’ 1659 implied HN points β€’ 19 Mar 23
  1. A stressful day for financial markets due to negotiations about the future of Credit Suisse.
  2. Switzerland considering emergency measures for UBS to take over Credit Suisse amid banking crises.
  3. Signs of negative impact on the real economy, especially through small banks and commercial real estate loans.
The Informationist β€’ 1650 implied HN points β€’ 30 Apr 23
  1. Interest rate risks can lead to bank collapses due to mismanagement and lack of oversight
  2. Different types of interest rate risks affect banks' financial positions, such as repricing risk and basis risk
  3. It is important for individuals to be cautious with their bank deposits and consider diversifying investments based on personal risk tolerance and long-term goals
Five Links (and three graphs) by Auren Hoffman β€’ 1638 implied HN points β€’ 17 Aug 23
  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.

SVB

Market Sentiment β€’ 1552 implied HN points β€’ 12 Mar 23
  1. Understanding the different sides of risk is crucial - the likelihood of getting hit, the average impact, and the extreme consequences.
  2. Banks operate by lending out deposits at higher rates to make profits, but this system poses the risk of bank runs.
  3. SVB's rapid collapse was triggered by increased stress, a market sell-off, and a loss of customer confidence due to poor communication.
Jon’s Newsletter β€’ 119 implied HN points β€’ 12 Jul 24
  1. Marko Kolanovic's bearish predictions about the stock market didn't happen, leading to his departure from JP Morgan. In a strong market, being negative can be isolating.
  2. Tesla's stocks have been rising quickly due to excitement around AI and self-driving cars, but some analysts warn that the stock may be overrated at this point.
  3. Costco is raising its membership fees for the first time in seven years, which could lead to an increase in their profits. Many analysts continue to view Costco as a strong investment option.
Matt Ehret's Insights β€’ 1277 implied HN points β€’ 09 May 23
  1. The integration of leading Nazis into Anglo-American intelligence complex after WWII led to the rise of fascism then and now.
  2. Modern expressions of fascism seen in Ukraine and other post Soviet nations glorify Nazi collaborators.
  3. The financiers and industrialists of the 1920s -1940s were key in fueling fascism with their support and resources, showing that Hitler and Mussolini were not 'their own men'.
Geopolitical Economy Report β€’ 1275 implied HN points β€’ 12 Mar 23
  1. The US banking system is facing a significant crisis due to the consequences of past actions, like the 2009 bank bailout and the quantitative easing measures that followed.
  2. Rising interest rates are causing bond prices to fall, which is putting pressure on banks as their assets decrease in value against deposit liabilities.
  3. The current banking crisis is reminiscent of past financial failures, like the savings and loan crisis in the 1980s, and is exacerbated by factors like the cryptocurrency wave and derivatives trading.
The Informationist β€’ 1257 implied HN points β€’ 26 Mar 23
  1. BTFP is a program by the Fed to provide liquidity to underfunded banks facing large customer withdrawals.
  2. Banks can borrow against securities like U.S. Treasuries with no haircut and at a low cost.
  3. BTFP offers a sweetheart deal to banks, providing liquidity without stigma of borrowing from the Discount Window.
Altered States of Monetary Consciousness β€’ 481 implied HN points β€’ 08 Mar 24
  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.
Fintech Business Weekly β€’ 661 implied HN points β€’ 21 Jan 24
  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.
The Bitcoin Layer β€’ 550 implied HN points β€’ 03 Feb 24
  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.
Yet Another Value Blog β€’ 1022 implied HN points β€’ 23 Oct 23
  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.
The Informationist β€’ 982 implied HN points β€’ 04 Jun 23
  1. The US Treasury's checking account is dangerously low, risking default if it hits zero.
  2. Congress took action to prevent financial crisis by approving a larger line of credit for the Treasury.
  3. Questions arise on where the Treasury will get over $1 trillion to refill its coffers and the potential market impact.
Geopolitical Economy Report β€’ 558 implied HN points β€’ 13 Jan 24
  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.
cryptoeconomy β€’ 943 implied HN points β€’ 15 Jul 23
  1. Empty office buildings pose a threat to regional banks who heavily invest in commercial real estate.
  2. The decline of America's biggest cities is exacerbated by poor governance and loss of tax revenue.
  3. Fleeing businesses and middle class residents drain urban areas, leading to a vicious cycle of economic decline.