The hottest Banking Substack posts right now

And their main takeaways
Category
Top Finance Topics
Fintech Business Weekly 89 implied HN points 09 Feb 25
  1. Debanking is becoming a major topic, especially around the access of crypto companies to traditional banking. This issue has been fueled by public statements from influential figures like Marc Andreessen.
  2. There are claims of political bias in banking, particularly against conservative individuals and businesses. Some people argue that banks are closing accounts for political or ideological reasons, though banks deny this.
  3. Both Republicans and Democrats recognize debanking as a significant problem, but they have different views on its causes and solutions. Democrats are pushing for protections against unfair account closures, while Republicans want legislation to ensure fair access to banking.
The Fintech Blueprint 530 implied HN points 04 Oct 23
  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.
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Japan Economy Watch 179 implied HN points 21 Mar 24
  1. The Bank of Japan's decision to make monetary policy changes despite unclear wage and price trends was questioned.
  2. There was no immediate financial market pressure on the BOJ to act, as rates were stable and not pushing past set levels.
  3. Conflicting data on wage trends created uncertainty, with various databases showing contradictory evidence, making predictions difficult.
Musings on Markets 839 implied HN points 06 May 23
  1. The recent banking crisis in the US started with the sudden collapse of Silicon Valley Bank, which was unexpected and quick, leading to a series of other bank failures. This raises concerns about whether the crisis will impact the larger economy like the 2008 crisis did.
  2. Understanding what makes a bank strong or weak is essential. Key factors include how sticky their deposits are, the amount of equity they have to absorb losses, and the quality of their loan portfolios.
  3. The market's reaction to the crisis has been mixed, with larger banks holding up better than regional ones. However, the crisis may push more consolidation within the banking industry, affecting competition and overall bank profitability.
The Dollar Endgame 279 implied HN points 19 Jan 24
  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.
Musings on Markets 819 implied HN points 07 May 23
  1. Good banks tend to have stickier deposits, which help them maintain stability. Buying a good bank at a high price might actually lead to losses compared to buying a bad one at a low price.
  2. Valuing banks is tricky because their cash flows and risks are different from other businesses. Instead of using traditional methods, one should often use a dividend discount model or a free cash flow to equity model.
  3. The price of a bank's stock can differ significantly from its actual value. Understanding both the intrinsic value and market price is key to making smart investment decisions.
The Fintech Blueprint 491 implied HN points 19 Apr 23
  1. Apple has launched a Savings account with a 4.15% yield through Goldman Sachs, creating a disruptive financial product.
  2. Goldman Sachs plays a significant role in the product's distribution, benefiting from Apple's massive consumer base.
  3. Other big tech companies like Google, PayPal, and Ant Financial have also made inroads into financial services, showcasing a trend towards tech-powered banking.
Fintech Business Weekly 193 implied HN points 17 Nov 24
  1. The FTC has accused the fintech app Dave of misleading users about cash advances, fees, and subscription charges. They claimed many people were promised higher amounts than they could actually get and were not clearly informed about fees.
  2. The number of unbanked households in the U.S. has dropped to 4.2%, but there are still major differences across racial and ethnic groups. Black and Hispanic households remain much more likely to be unbanked than White households.
  3. During the Synapse bankruptcy, issues arose about how funds were managed and returned to users. A lot of users may face significant losses, and there’s a push for more transparency and accountability from banks involved.
Geopolitical Economy Report 458 implied HN points 07 May 23
  1. Economist Michael Hudson discusses the collapse of four US banks in two months, including First Republic Bank being taken over by JP Morgan Chase, highlighting the deep ties between government regulators and bankers.
  2. The collapse of banks like First Republic Bank can be attributed to high ratios of uninsured deposits and risky long-term mortgages, demonstrating systemic issues in the banking sector.
  3. The banking crisis is a result of the government's bailout policies, with large banks like JP Morgan Chase being given favorable deals despite being rated as the riskiest, leading to the undue burden on the economy and the potential for a deep financial collapse.
The Dollar Endgame 199 implied HN points 21 Feb 24
  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.
Fintech Business Weekly 89 implied HN points 26 Jan 25
  1. CBW is accusing the FDIC of racial and gender discrimination in their handling of a significant penalty against the bank. They argue that their leadership has faced bias because of their backgrounds.
  2. A grand jury is investigating the situation surrounding Synapse Financial Technologies, and former employees are being subpoenaed for documents related to potential misconduct.
  3. Patriot Bank is under scrutiny from regulators and has been designated as 'troubled', which means it has to make major changes to its operations and compliance practices.
Fintech Business Weekly 156 implied HN points 01 Dec 24
  1. Marc Andreessen claims that the Consumer Financial Protection Bureau (CFPB) is making it hard for fintech and crypto companies to succeed because it wants to protect big banks. He believes the CFPB causes banks to refuse services to risky customers.
  2. Andreessen argues that independent government agencies like the CFPB aren't accountable to the public and can act without checks. He feels this restricts innovation in financial services.
  3. Despite claims of 'debanking,' major companies are still engaging in crypto activities. The claims about being pushed out due to regulatory pressures may not reflect the whole truth about the market's adaptability.
Geopolitical Economy Report 418 implied HN points 14 Apr 23
  1. Before the collapse of Silicon Valley Bank, it lobbied to remove regulations and then received a bailout, benefiting billionaires. Americans are angry at the corruption.
  2. US banks collapsed in March 2023, leading to massive bailouts for wealthy depositors, showing a pattern of blatant corruption and regulatory capture in Washington.
  3. The banking crisis is far from over as unrealized losses on investment securities have reached over $600 billion, indicating a potential larger collapse ahead due to rising market interest rates.
The Dollar Endgame 399 implied HN points 17 Oct 23
  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.
Points And Figures 426 implied HN points 27 Feb 24
  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.
ANDREA CECCHI Newsletter 412 implied HN points 24 Sep 23
  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.
CalculatedRisk Newsletter 43 implied HN points 13 Nov 24
  1. Mortgage originations are showing different trends based on credit scores compared to the years before the housing bubble. This means people's borrowing habits and qualifications might have changed significantly.
  2. Delinquencies on mortgages are increasing, which suggests that more people might be having trouble making their payments lately.
  3. Foreclosures are still low, meaning that even though some people are struggling to pay, many still manage to keep their homes and avoid losing them.
Chartbook 1659 implied HN points 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.
Fintech Business Weekly 89 implied HN points 12 Jan 25
  1. Some people affected by the Synapse bankruptcy have struggled to get their money back, leaving many feeling hopeless. The trustee in charge is working on figuring out how to reconcile the missing funds.
  2. One man was able to get his money back by filing a small claims case against Evolve Bank, showcasing that taking legal action can sometimes help consumers regain their lost funds.
  3. In contrast, his daughter faced challenges in court with her similar case, highlighting how results can vary even with similar circumstances. This shows that legal situations can be unpredictable.
ANDREA CECCHI Newsletter 176 implied HN points 09 Feb 24
  1. People have lost their life savings trusting banks - it's not a safe place for all your money.
  2. The 2008 financial crisis led to a wave of bank failures, and in 2023 banks are again under stress.
  3. It's important to understand the three fundamental truths of the modern banking system before depositing money in a bank.
Fintech Business Weekly 66 implied HN points 02 Feb 25
  1. Evolve Bank & Trust has faced serious legal issues, including accusations of illegal discrimination and failing to meet fiduciary responsibilities. This has raised concerns about their trustworthiness.
  2. The middleware platform Solid is shutting down, and its bank partner, Lewis & Clark, is also exiting its banking-as-a-service business. This indicates a tough environment for fintech companies.
  3. Wise has reached a settlement with the Consumer Financial Protection Bureau for advertising inaccuracies and failing to disclose fees properly. This highlights ongoing scrutiny in the fintech sector regarding consumer protection.
Geopolitical Economy Report 358 implied HN points 15 Mar 23
  1. Economist Michael Hudson discussed the collapse of US banks, noting similarities to the 2008 financial crisis and the reliance on government bailouts.
  2. The Federal Reserve's handling of interest rates and bailouts in response to bank collapses indicates systemic issues in the financial sector.
  3. Derivatives, specifically highly leveraged bets, are looming as a significant risk for the banking sector and could trigger the next big crash.
Fintech Business Weekly 89 implied HN points 05 Jan 25
  1. CBW is facing a huge $20.5 million fine from the FDIC, which could put its future at risk. This penalty is due to failures in its anti-money laundering practices.
  2. A small Kansas bank, CBW, has made a lot of money from international services but hasn't fixed issues raised by regulators in past reviews. They were supposed to improve but didn't make significant changes.
  3. The FDIC argues that the situation with CBW highlights serious compliance problems in the banking sector. They are trying to enforce rules to prevent money laundering, especially in high-risk areas.
Fintech Business Weekly 661 implied HN points 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.
Fintech Business Weekly 52 implied HN points 16 Feb 25
  1. Varo Bank is facing challenges as its founder and CEO Colin Walsh steps down. New CEO Gavin Michael has a tough job ahead with the company still not profitable.
  2. Despite some improvements in revenue and customer growth, Varo's net losses remain significant, with $65 million lost last year. It needs to boost its deposits and customer engagement.
  3. The financial regulatory landscape is changing with new appointments, including Jonathan McKernan resigning from the FDIC and being nominated to lead the CFPB. This could impact how financial services are managed going forward.
DeFi Education 339 implied HN points 01 Oct 23
  1. BlockFi has officially confirmed its chapter 11 bankruptcy plan. They will be winding down operations under the control of creditors.
  2. Celsius's bankruptcy process is nearing completion, as creditors have agreed to the necessary steps.
  3. These updates highlight the ongoing issues within the cryptocurrency industry, especially related to financial management and customer trust.
The Dollar Endgame 339 implied HN points 12 May 23
  1. There is a financial crisis brewing with banks collapsing and facing liquidity issues, leading to a rapid withdrawal of funds from the system.
  2. Banks like Silicon Valley Bank have made risky investments with high-end clients, creating vulnerabilities in the financial sector.
  3. The Federal Reserve's policies have inadvertently caused a drain on traditional banks, pushing money into shadow banks and triggering a potential chain of bank failures.
Diane Francis 639 implied HN points 20 Mar 23
  1. The collapse of Silicon Valley Bank (SVB) wasn't as dramatic as Lehman Brothers in 2008, but it did show flaws in the banking system. Unlike Lehman, SVB's issues came from poor management rather than widespread systemic problems.
  2. Government reactions were swift this time, which helped contain the fallout. They extended deposit insurance to all SVB depositors to prevent panic, but this crisis highlighted the need for stricter banking regulations.
  3. The financial market is in turmoil again, and more banks might struggle due to rising interest rates. While this isn't a repeat of 2008, it serves as a reminder that there need to be safeguards in place to protect the economy.
Contemplations on the Tree of Woe 882 implied HN points 13 Sep 23
  1. The Physiocratic Platform focuses on reforming the banking system by replacing the Federal Reserve and fractional-reserve banking.
  2. The Chicago Plan advocates for full-reserve banking and government-issued equity money to avoid debt and inflation.
  3. Implementing the Chicago Plan can regulate credit cycles, prevent bank runs, reduce government debt, and boost long-term economic output.