The hottest Banking Substack posts right now

And their main takeaways
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Top Finance Topics

Debanking's Dueling Narratives

Fintech Business Weekly • 89 implied HN points • 09 Feb 25
💰 Finance Banking Cryptocurrency Regulation Policy Investment
  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.

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.
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Why Did The BOJ Move Despite Conflicting Evidence on Wages and Prices?

Japan Economy Watch • 179 implied HN points • 21 Mar 24
💰 Finance Economy Banking Inflation Monetary Policy Wages
  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.

Breach of Trust: Decoding the US Banking Crisis of 2023

Musings on Markets • 839 implied HN points • 06 May 23
💰 Finance Banking Investments Economics Regulations Market Trends
  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.

Stuffing the Coffers

The Dollar Endgame • 279 implied HN points • 19 Jan 24
💰 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.

Good (Bad) Banks, Good (Bad) Investments: An Investing Perspective

Musings on Markets • 819 implied HN points • 07 May 23
💰 Finance Investing Banking Valuation Market Analysis Risk management
  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.

Long Take: Is Apple's Goldman-powered 4.15% yield account the fintech apocalypse?

The Fintech Blueprint • 491 implied HN points • 19 Apr 23
💰 Finance Big Tech Banking Lending Blockchain Wealth Management
  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.

FTC Alleges Dave Deceived Users On Tips, Instant Fees, Advance Amounts

Fintech Business Weekly • 193 implied HN points • 17 Nov 24
💰 Finance Financial Regulations Banking Fintech
  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.

4 US banks crash in 2 months: Banking crisis explained by economist Michael Hudson

Geopolitical Economy Report • 458 implied HN points • 07 May 23
💰 Finance Banking Regulation Derivatives Market volatility
  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.

Asian Financial Crisis Redux

The Dollar Endgame • 199 implied HN points • 21 Feb 24
💰 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.

CBW Accuses FDIC Of Racial, Gender Discrimination; Trade Groups Support Bank’s Seventh Amendment Claim

Fintech Business Weekly • 89 implied HN points • 26 Jan 25
💰 Finance Banking Investment Regulation Economics Legal issues
  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.

Synapse Investor Marc Andreessen Says CFPB "Terrorizes" Fintech, Crypto To Protect Big Banks

Fintech Business Weekly • 156 implied HN points • 01 Dec 24
💰 Finance Fintech Regulation Investments Banking Consumer Protection
  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.

US bank bailout benefited billionaires, exposing corruption: 'I understand why Americans are angry'

Geopolitical Economy Report • 418 implied HN points • 14 Apr 23
🇺🇸 U.S. Politics Corruption Regulation Banking Inequality Corporations
  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.

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.

Fighting The Fed

Points And Figures • 426 implied HN points • 27 Feb 24
💰 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.

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.

NY Fed: Mortgage Originations by Credit Score, Delinquencies Increase, Foreclosures Remain Low

CalculatedRisk Newsletter • 43 implied HN points • 13 Nov 24
💰 Finance Banking Mortgages Credit Economics Debt
  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 #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.

How One Synapse/Evolve Victim Got His Money Back

Fintech Business Weekly • 89 implied HN points • 12 Jan 25
💰 Finance Banking Investments Regulation Fintech Consumer Rights
  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.

I SOLDI IN BANCA

ANDREA CECCHI Newsletter • 176 implied HN points • 09 Feb 24
💰 Finance Banking Financial Crisis Risk management
  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.

Middleware Platform Solid To Wind Down, Lewis & Clark To Exit BaaS

Fintech Business Weekly • 66 implied HN points • 02 Feb 25
💼 Business Finance Investment Banking Regulation Legal issues
  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.

Why 3 US banks collapsed in 1 week: Economist Michael Hudson explains

Geopolitical Economy Report • 358 implied HN points • 15 Mar 23
💰 Finance Banking Regulation Derivatives Interest Rates
  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.

CBW Fights FDIC's $20.5 Million Penalty That Could "Imperil" Its Existence

Fintech Business Weekly • 89 implied HN points • 05 Jan 25
💰 Finance Banking Regulation Investment Fintech Risk management
  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.

CFPB Proposes Rule To Close TILA Overdraft "Loophole"

Fintech Business Weekly • 661 implied HN points • 21 Jan 24
💰 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.

Varo Struggles On As Founder Colin Walsh Steps Down As CEO

Fintech Business Weekly • 52 implied HN points • 16 Feb 25
💰 Finance Fintech Banking AI Investments Regulations
  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.

UnblockFi

DeFi Education • 339 implied HN points • 01 Oct 23
🔮 Crypto Blockchain Banking Investments Financial regulation
  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 Dying Banks and the Singularity

The Dollar Endgame • 339 implied HN points • 12 May 23
💰 Finance Banking Investments Market Regulations Risk management
  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.

Not a Lehman Moment

Diane Francis • 639 implied HN points • 20 Mar 23
💰 Finance Banking Regulation Market Trends Economic Policy Risk management
  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.

The Physiocratic Platform: Banking

Contemplations on the Tree of Woe • 882 implied HN points • 13 Sep 23
💰 Finance Banking Policy Reform Economic Theory
  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.