The hottest Banking Substack posts right now

And their main takeaways
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Top Finance Topics

Banking on Pressure

The Last Bear Standing • 70 implied HN points • 12 May 23
💰 Finance Banking
  1. Both cash liquidity and solvency are crucial for banks. If customers or investors worry about either, they may withdraw funds or sell stock.
  2. Bank liquidity has been fluctuating, impacted by events like the pandemic and quantitative easing/tightening, leading to concerns about insolvency and the need for temporary borrowings.
  3. Deposit fluctuations in banks are tied to the Federal Reserve's actions like quantitative easing and tightening, with large banks experiencing the fastest decline in deposits.

The Great Depositor Bailout

MD&A • 78 implied HN points • 14 Mar 23
💰 Finance Banking
  1. Depositing money in a bank is a safe store of value but doesn't yield much return.
  2. Depositors face risks like losing purchasing power due to inflation.
  3. Inflation can benefit borrowers like the government and households, while bank depositors bear the brunt of losing purchasing power.

Silicon Valley Bank, Dead of Maturity Mismatch

Unfashionable • 76 implied HN points • 14 Mar 23
💰 Finance Banking
  1. Maturity transformation in banking can lead to risks like maturity mismatch.
  2. Banks borrowing short and lending long can face insolvency if assets lose value.
  3. Fixing the underlying issue of maturity mismatch in banking is crucial for stability, and some believe Bitcoin can help in this regard.

Corporate investment after rate cuts

Klement on Investing • 1 implied HN point • 09 Dec 25
💰 Finance Banking
  1. A one percentage-point cut in policy rates typically raises corporate investment by about 7% over the following two years, though the average masks big differences across firms.
  2. Firms that build long-lived assets (real estate, utilities, healthcare) react much more to rate cuts than companies with short-lived assets like tech and media.
  3. Many companies still won’t invest after rate cuts because of weak opportunities, labour shortages, or a need for cash, so monetary policy works slowly and depends on business confidence — which governments and media can help amplify or undermine.

The history of inhouse legal

The Jolly Contrarian • 59 implied HN points • 23 Oct 21
💼 Business Banking
  1. In-house legal departments in banks have evolved over time from negligible involvement to becoming key players in managing legal relationships and adding value to the organization.
  2. The rise of magic circle law firms marked a period where law firms charged high rates for extensive legal work, benefiting from banks' willingness to pay for legal protection in their big financial deals.
  3. Management consultants stepped in to help banks reduce legal spend, resulting in the development of legal operations teams within organizations to optimize legal processes and costs.
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The Death of Credit Suisse

Apricitas Economics • 64 implied HN points • 25 Mar 23
💰 Finance Banking
  1. Credit Suisse faced major financial issues over several years, with losses, leaked data, and fines leading to its demise.
  2. Swiss authorities forced Credit Suisse to merge with UBS to prevent a public collapse and global financial crisis.
  3. The fallout from Credit Suisse's fall includes impacts on European banks, market confidence, and central bank efforts to stabilize the financial system.

The Death of First Republic?

Apricitas Economics • 57 implied HN points • 29 Apr 23
💰 Finance Banking
  1. First Republic is facing a financial crisis and potential FDIC takeover due to significant uninsured deposit withdrawals.
  2. The bank's investments in long-duration assets like real estate loans have suffered as interest rates rose.
  3. The broader US banking system remains stressed with decreasing deposits and increased borrowing, impacted by the inverted yield curve and changing depositor dynamics.

The golden age of informal securities

Gray Mirror • 59 implied HN points • 17 Mar 23
💰 Finance Banking
  1. The banking system relies on continuously increasing systemic debt which is never repaid.
  2. Modeling fiat currency as state equity and deposit insurance as informal securities has complex implications.
  3. The financial system's stability is a concern due to pressure building with uncertain outcomes, indicating a need for changes.

Run on the Bank

The Transcript • 19 implied HN points • 13 Mar 23
💰 Finance Banking
  1. Mark-to-market losses in bonds are widespread, even at the Fed.
  2. A bank recently failed due to rapidly expanding deposits and poor management.
  3. The failure of the bank was not due to credit risk.

Trump's Banks

Net Interest • 13 implied HN points • 08 Nov 24
💰 Finance Banking
  1. Trump has had a complex and fluctuating relationship with Wall Street, relying on banks for significant funding throughout his career. His ventures often led to defaults and bankruptcies, causing lenders to hesitate to work with him later.
  2. Deutsche Bank played a crucial role in Trump's financing, lending him over $2 billion despite his previous financial troubles. This close relationship also implicated the bank in legal issues related to Trump's financial practices.
  3. Trump has shifted his main banking relationships over time, now primarily working with a smaller bank called Axos Financial. Following his election win, his creditworthiness improved, benefiting both him and the bank.

The State of India's Banking Sector

Turnaround • 59 implied HN points • 04 Jan 21
💼 Business Banking
  1. In 2020, more deposits went to private banks in India than Public Sector Banks for the first time.
  2. The bad loan crisis in Indian banks was tackled through measures like Asset Quality Review and Insolvency and Bankruptcy Code.
  3. Indian public sector banks need to focus on technology and adapt to changing consumer demands to compete with private banks in terms of market share.

Lindy Bank

Net Interest • 12 implied HN points • 15 Nov 24
💰 Finance Banking
  1. European governments are selling off their stakes in banks after a period of crisis, with billions of dollars worth of shares being returned to private ownership.
  2. Monte dei Paschi di Siena, the world's oldest bank, is showing signs of recovery and profitability after facing multiple near-failures over its long history.
  3. Management changes and a new business plan at Monte dei Paschi di Siena suggest the bank is optimistic about future growth and possibilities of mergers and acquisitions.

[Re-post] When A Dollar Isn't a Dollar

Economic Forces • 4 implied HN points • 19 Jun 25
💰 Finance Banking
  1. Banks hold physical money to back the digital dollars they create, ensuring people can get their money when they want it.
  2. A new plan suggests issuing digital dollars without holding any real money, relying instead on supply and demand to keep their value steady.
  3. However, if people stop trusting these digital dollars or start selling them, their value can drop quickly, as seen when a stablecoin recently lost its peg to the dollar.

Our Economic Arrogance Will Be Our Undoing

QTR’s Fringe Finance • 42 implied HN points • 16 May 23
💰 Finance Banking
  1. Economic arrogance, like wrong predictions about inflation, can lead to detrimental consequences.
  2. Signs indicate a looming recession, especially with rising interest rates and slowing debt growth.
  3. The stock market may not accurately reflect the true economic indicators, potentially leading to a future market crash.

The Risks Still Lurking in the Banking System

Apricitas Economics • 42 implied HN points • 08 May 23
💰 Finance Banking
  1. The American banking system is facing increased risks with several banks failing and many regional banks under pressure
  2. Market movements for surviving banks show negative excess returns, with declining valuations particularly for mid-sized regional banks
  3. Understanding rates risk in the banking system requires looking at exposure to long-term assets, especially in real estate lending, and the impact on uninsured deposits

All the Devils

Net Interest • 10 implied HN points • 01 Nov 24
💰 Finance Banking
  1. Credit Suisse faced many scandals over the years, with problems ranging from excessive leverage to internal fraud. Many employees engaged in unethical behavior, which contributed to the firm's reputation and difficulties.
  2. During the 2000s, Credit Suisse grew and achieved record earnings, but underlying issues were present. The firm made risky acquisitions and ignored warning signs that would later affect its stability.
  3. A historical perspective reveals a pattern of mismanagement and scandal within Credit Suisse. Key figures in the company made questionable decisions that ultimately led to its downfall.

What Killed Signature Bank?

Apricitas Economics • 39 implied HN points • 01 Apr 23
💰 Finance Banking
  1. Signature Bank faced a severe bank run due to rapid withdrawal of deposits, leading to its collapse.
  2. The bank's heavy reliance on uninsured deposits, especially from crypto-related sources, contributed to its downfall.
  3. Regulators stepped in to prevent further financial contagion, highlighting the need for managing risks of fast-paced bank runs.

The Economy Is A Powder Keg, Boiling Over And Ready To Blow

QTR’s Fringe Finance • 34 implied HN points • 01 May 23
💰 Finance Banking
  1. Pressure is building up in the economic system with five major banks collapsing since March.
  2. Equity prices are high despite economic turmoil, indicating possible blow off valves elsewhere like precious metals.
  3. The government's casual attitude towards bailing out banks and printing money could have massive consequences for the economy and may lead to a shift towards precious metals.

Lutnick Goes to Washington

Net Interest • 8 implied HN points • 22 Nov 24
💼 Business Banking
  1. Interdealer brokers connect traders without revealing who they are. This helps big companies make deals quietly, without affecting the market price.
  2. Even in a world dominated by technology, many traders still value personal interaction and market insights from human brokers. These brokers can find the best prices and handle complex trades in ways machines can't.
  3. Howard Lutnick's story is compelling, especially given his background and experiences. His role as a leader in interdealer broking may influence his approach as Commerce Secretary.

Contagion

Net Interest • 30 implied HN points • 17 Mar 23
💰 Finance Banking
  1. When a bank fails, it affects the entire industry differently than other types of companies.
  2. Contagion in the financial sector can spread through customer confidence more than asset or origin similarities.
  3. Market reactions and indicators can be key in predicting and reacting to potential banking crises.

Creating a Monster

Net Interest • 26 implied HN points • 02 Jun 23
💰 Finance Banking
  1. Financial innovation can sometimes have unintended consequences.
  2. Sharing proprietary knowledge can have both positive and negative impacts.
  3. Regulatory changes and mergers can lead to the growth of 'monstrous' financial systems.

Pippa Passes: SVB, Alien Motherships, Mathematical Constants, New Physics, Manhattan Project v2, CBDC, and Indra’s Net

Dr. Pippa's Pen & Podcast • 29 implied HN points • 12 Mar 23
💼 Business Banking
  1. The financial world has issues with captive models, where banks raise money for clients and hold it, leading to potential risks like re-hypothecation.
  2. Start-ups, especially in Silicon Valley, faced challenges with raising capital and high failure rates, raising questions about the funding and support system for these businesses.
  3. There is a need to better understand the difference between having a brilliant product and building a successful business, as many founders struggle to make that transition.

The Parable of Angelo Mozilo

Net Interest • 22 implied HN points • 21 Jul 23
💰 Finance Banking
  1. Angelo Mozilo was a key figure in the mortgage industry, starting Countrywide Financial and seeing its rise and fall.
  2. Countrywide's shift towards subprime lending led to risky practices, with Mozilo's ambition for growth overriding concerns about risk.
  3. Despite the financial crisis fallout, Mozilo personally profited from insider trading but faced legal repercussions, highlighting the recurring issue of trading risk for growth in financial services.

Issue #137: Klarna’s U.S. IPO Plans, Nubank Hits 100M Users, And PayPal Gets Collaborative

Fintech Radar • 6 implied HN points • 20 Nov 24
💰 Finance Banking
  1. Klarna has filed for an IPO in the U.S., hoping to attract more investors. This comes after difficult years, but they're now showing profitability.
  2. Nubank has grown to over 100 million customers in Brazil, showing how digital banks can successfully compete with traditional ones. They've expanded their services beyond just credit cards.
  3. PayPal has introduced a new feature for group money pooling, making it easier for users to manage shared expenses. This move highlights how big companies can absorb features that startups were trying to create.

Issue #136: Affirm Arrives In The UK, Block Ramps Up Afterpay, And Coinbase Partners With Visa

Fintech Radar • 6 implied HN points • 13 Nov 24
💰 Finance Banking
  1. Affirm is now in the UK, partnering with Amazon to offer buy now, pay later options. This move puts them up against established competitors like Klarna and Afterpay.
  2. Block is enhancing its Cash App by integrating Afterpay, making it easier for users to manage payments. This could help Block maximize the value of its Afterpay acquisition.
  3. Coinbase teamed up with Visa for real-time deposits, allowing quick transfers into user accounts. This partnership is a significant step for improving the user experience in crypto trading.

Capital One: Buffett’s Latest Banking Pick

Net Interest • 23 implied HN points • 19 May 23
💼 Business Banking
  1. Warren Buffett bought $1 billion worth of Capital One stock in the first quarter of this year.
  2. Capital One started as a credit card business, then expanded to become a full-fledged bank through innovative pricing strategies and aggressive marketing.
  3. Capital One's performance depends on various factors, including the unemployment rate, which impacts charge-offs on their credit card portfolio.

New York State of Mind

Net Interest • 13 implied HN points • 02 Feb 24
💰 Finance Banking
  1. The Federal Reserve's oversight of banks is divided by size, with different divisions supervising banks of varying asset thresholds.
  2. Regulators reacted swiftly to New York Community Bancorp surpassing the $100 billion threshold by implementing capital preservation measures.
  3. New York Community Bancorp's stock fell significantly after taking actions to strengthen its balance sheet, raising concerns and prompting discussions about reviving a retired series on banking crises.

Issue #133: Stripe To Buy Bridge For $1.1B, Apple Pay Adds Klarna, And Brex Partners With Navan

Fintech Radar • 6 implied HN points • 23 Oct 24
💰 Finance Banking
  1. Stripe is buying Bridge for $1.1 billion to enhance its stablecoin services. This shows Stripe's big plans to grow its role in international payments.
  2. Apple Pay is teaming up with Klarna to allow users to split payments into four interest-free installments. This move signals Apple’s shift back to focusing on partnerships for better payment options.
  3. Brex is partnering with Navan to make travel payments easier for businesses. This collaboration aims to simplify expense management by integrating payment solutions directly into travel bookings.

The Demise of Credit Suisse

Net Interest • 23 implied HN points • 24 Mar 23
💰 Finance Banking
  1. Credit Suisse faced financial downfall despite strong past performance.
  2. Mismanagement of assets and poor decisions led to diminishing returns for Credit Suisse.
  3. Regulatory changes and loss of competitive edge in private banking contributed to Credit Suisse's decline.

Issue #140: Amazon Snaps Up Axio, Robinhood’s Crypto Push Into Spain, and Another Bank Fintech Flop

Fintech Radar • 4 implied HN points • 29 Jan 25
💰 Finance Banking
  1. Amazon is buying a fintech called Axio in India to strengthen its credit services. This shows Amazon's intent to dive deeper into lending rather than just partnering with others.
  2. Ramp has launched a new treasury management product, making it easier for businesses to manage their cash. This is part of a trend where companies want financial tools that integrate into their daily operations.
  3. HSBC shut down its Zing app just a year after launching it, which highlights how challenging it is for banks to successfully enter the fintech space. Just having money and a name isn't enough to succeed in this fast-paced market.

The Secret Diary of a Bank Analyst

Net Interest • 22 implied HN points • 31 Mar 23
💰 Finance Banking
  1. Banks' unique financial structure means their creditors are their customers
  2. Banks operate in a regulatory environment that influences decisions and operations
  3. Focus on growth in banking may not always be a positive thing for financial stability

#94 - OpenAI does your Tasks, Jio wants to bring Web3 to masses, another framework hosts webpages, understanding in-flight entertainment & more

The Nibble • 4 implied HN points • 20 Jan 25
🕹 Technology Banking
  1. OpenAI continues to develop tools that can handle your tasks better, making it easier for you to work efficiently.
  2. Jio is teaming up with Polygon to bring Web3 technology to a large number of users in India, which could open up new opportunities in the crypto space.
  3. A new feature called 'Import Attributes' in ECMAScript allows developers to import not just JavaScript modules but also other types of files, simplifying how they manage different resources.

Issue #139: Revolut Eyes New Zealand Banking Licence, eToro Targets US IPO, And Pocket Money Goes Digital

Fintech Radar • 4 implied HN points • 11 Dec 24
💰 Finance Banking
  1. Revolut is applying for a banking license in New Zealand to expand its services. This could help them offer more products and gain a larger market share there.
  2. eToro is planning a U.S. IPO after a previous attempt fell through. They are looking to enter the public market at a time when investor interest in fintech is growing.
  3. John Lewis launched a fun app called 'Pocket Money Pet' to help kids learn about money. It's a creative way to teach kids saving and budgeting skills early on.