The hottest Banking Substack posts right now

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

Fintech Business Weekly • 89 implied HN points • 03 Mar 24
💰 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.
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Chartbook #203 Banking crises, states of exception & the disappointment of sovereignty - a roundup of last week.

Chartbook • 1659 implied HN points • 19 Mar 23
💰 Finance Banking Market Crisis Regulations Economy
  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.

Interest Rate Risks are Collapsing Banks

The Informationist • 1650 implied HN points • 30 Apr 23
💰 Finance Banking Interest Rates Risk management Financial Crisis Investments
  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

SVB

Market Sentiment • 1552 implied HN points • 12 Mar 23
💼 Business Finance Banking Startups Investing Economics
  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.

Is the Capital One/Discover Deal Good or Bad For “Competition”? Yes.

Fintech Business Weekly • 81 implied HN points • 25 Feb 24
💰 Finance Fintech Regulation Banking Acquisition Legislation
  1. Capital One's acquisition of Discover is a complex deal that has both good and bad elements for competition, creating a potential shake up in the US payments space.
  2. The CFPB is using once-dormant authority to supervise nonbank entities like World Acceptance Corp, focusing on risks to consumers.
  3. Acting Comptroller Hsu suggests creating a federal money transmitter licensing framework to better regulate non-bank companies providing bank-like services, highlighting potential risks in the growing role of non-bank firms in banking areas.

Morgan Stanley-Backed TomoCredit Isn't Paying Its Bills, Faces Mounting Legal Challenges

Fintech Business Weekly • 89 implied HN points • 18 Feb 24
💰 Finance Fintech Credit Legal Challenges Startups Banking
  1. TomoCredit, a startup backed by Morgan Stanley, is facing financial troubles and legal challenges despite its initial success claims.
  2. Mission Lane, a subprime card startup linked to LendUp, has raised $50 million and replaced its CEO in an effort to reposition itself.
  3. A study by the Federal Reserve reveals differences in how financially stable versus fragile households utilize buy now, pay later services, impacting the types and frequency of purchases made.

Long Take: Is Apple Wallet's Open Banking integration a fintech extinction event?

The Fintech Blueprint • 530 implied HN points • 04 Oct 23
💰 Finance Fintech Banking Technology AI Big Tech
  1. Sharks' decline and human growth show the power of general intelligence over specialized adaptations.
  2. Smartphones like iPhones with general intelligence capabilities outperform specialized devices like ATMs.
  3. Big tech's embrace of open banking could lead to a future where standalone bank apps become obsolete.

The Anglo-American Hand Behind The Rise Of Fascism Then And Now

Matt Ehret's Insights • 1277 implied HN points • 09 May 23
💾 History World War II Fascism Banking International relations Eugenics
  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'.

Michael Hudson: Why the US banking system is breaking up

Geopolitical Economy Report • 1275 implied HN points • 12 Mar 23
💰 Finance Banking Federal Reserve Interest Rates Financial Crisis Cryptocurrency
  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.

Potential Class Action Argues High APR "Rent-a-Bank" Scheme Violates RICO

Fintech Business Weekly • 96 implied HN points • 11 Feb 24
💰 Finance Banking Legal Regulation Fintech Lending
  1. A potential class action case argues against a "rent-a-bank" scheme for high APR loans, highlighting the importance of understanding financial regulations and usury laws in the lending industry.
  2. The case brings attention to the evolving landscape between fintech companies and traditional banks, showing the complexities and discussions around defining the true lender in partnerships.
  3. The case also underscores the need for transparency and clarity in financial partnerships, as demonstrated by the alleged lack of distinction between a fintech entity and bank in customer-facing materials.

Bonds are the Ultimate Shitcoin

The Dollar Endgame • 399 implied HN points • 17 Oct 23
💰 Finance Investing Economics Banking Debt Monetary Policy
  1. Bonds are facing significant challenges with the Federal Reserve's interest rate hikes and inflation, causing a major downturn in the bond market.
  2. Bonds are crucial in the financial system and act as a form of money, affecting various sectors like banking and exposing risks in durations and interest rate movements.
  3. The bond market's current struggles are indicative of larger economic issues, with potential consequences for inflation, debt, and decisions by the Federal Reserve.

QUANDO LE BANCHE SCHIANTANO

ANDREA CECCHI Newsletter • 412 implied HN points • 24 Sep 23
💰 Finance Banking
  1. When you deposit money in a bank, it's no longer yours but a loan to the bank.
  2. Savings are often stored as euros in banks, accumulated with effort through generations.
  3. It's crucial to understand the implications of leaving money in banks and how it impacts ownership.

Fed Pivots to More Hikes, More Pain

cryptoeconomy • 648 implied HN points • 10 Jun 23
💰 Finance Economic Policy Monetary Policy Inflation Banking Investing
  1. The Federal Reserve is planning more interest rate hikes and tightening measures, signaling potential economic pain.
  2. Despite initial expectations of a pause in rate hikes due to economic impacts not yet fully realized, Fed Governor Waller is advocating for further hikes to curb inflation.
  3. Quantitative Tightening, the reversal of money printing, may be the next step for the Fed despite past failures, raising concerns of potential economic disruptions and widespread impacts.

Major Signals are flashing Code Red in the Shadow Banking System

The Dollar Endgame • 718 implied HN points • 07 May 23
💰 Finance Banking Investments Regulation Economy Markets
  1. The reverse repo figures reaching $2 trillion signal a serious issue in the market, showing strains on the entire banking system from massive liquidity injections.
  2. Reverse repos in the shadow banking system allow entities like MMFs to act like banks but without the same regulations, functioning in an opaque, complex, and risky world.
  3. The increased usage of the Fed's RRP facility and rising award rates indicate collateral shortages within the system, leading to concerns about the stability of MMFs and potential risks in the financial system.

Michael Hudson: Why the US bank crisis is not over

Geopolitical Economy Report • 717 implied HN points • 14 Mar 23
💰 Finance Banking Interest Rates
  1. When interest rates rise, bond prices fall, and banks can hold onto securities without marking down their assets, showing the decline only during a run on the bank.
  2. Depositors withdrew money as banks acted greedily, paying low deposit rates while making high profits, causing a shift towards more fair market returns elsewhere.
  3. The US bank crisis involves a mix of deregulatory corruption, political influence, and economic imbalance in the face of financial claims surpassing economic ability to pay.