The hottest Banking Substack posts right now

And their main takeaways
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Money Market Update

Concoda • 286 implied HN points • 20 Feb 24
💰 Finance Markets Investing Banking Economics Money
  1. Dollar liquidity remains high with low failures to deliver, stable bond volatility, tight dealer repo spreads, and tightening cross-currency bases
  2. Changes in the Fed's rescue mechanism are upcoming, as discussed in a recent post by Concoda
  3. Exploration of the transformation in the repo market and its potential impact on other dollar markets
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Regulators Should Conduct "Material Loss Review" Of Synapse Disaster

Fintech Business Weekly • 52 implied HN points • 08 Dec 24
💰 Finance Banking Investments Regulation Fintech Risk management
  1. Regulators should look into the Synapse disaster to understand what went wrong. This could help prevent similar issues in the future.
  2. There is a significant amount of lost funds that still needs to be clarified, impacting many users. Authorities need to take responsibility and provide transparency.
  3. The emotional toll on the people affected is serious, as highlighted by the Synapse trustee's feelings during court. Many end users are suffering and need answers.

Endgame #3

The Dollar Endgame • 119 implied HN points • 29 Nov 23
💰 Finance Economy Investments Monetary Policy Real Estate Banking
  1. Japan adjusted its bond yield control policy in an effort to curb interest rates, showing the delicate balance between stimulating the economy and managing debt.
  2. The United States is experiencing increases in national debt and a housing market slowdown due to rising interest rates impacting new home and car sales.
  3. Gold prices have been rising as a safe haven investment, influenced by a weakening dollar and central banks acquiring significant amounts of gold, serving as a potential indicator of future monetary debasement.

Eurodollar I: Origins

The Dollar Endgame • 139 implied HN points • 07 Oct 23
💰 Finance Banking Central Bank Financial Stability
  1. There exists a secret financial system, the Eurodollar System, that operates outside traditional financial regulations and could impact the global economy significantly.
  2. In the history of banking, innovations like private banks and clearing systems arose to address challenges like widely circulated banknotes and redemption issues.
  3. The Federal Reserve was created based on existing reserve bank systems, adding the revolutionary concept of the money printer and bank reserves, paving the way for expansion of credit creation.

The Most Important Thing About Money

DeFi Education • 779 implied HN points • 13 Feb 22
💰 Finance Banking Credit Debt Investment Economics
  1. Credit is really important for the economy because it allows people to spend more than they currently have. When used wisely, it can help grow productivity and income.
  2. Debt cycles can happen when people borrow too much compared to what they can pay back. This can lead to economic downturns if many people struggle with their debt at the same time.
  3. DeFi, or decentralized finance, uses credit within the crypto world. It helps create new financial opportunities using cryptocurrencies and is seen as the future of finance.

The 16th Largest Bank in the United States is No More

The Sunday Morning Post • 137 implied HN points • 12 Mar 23
💰 Finance Banking Investments Regulation Economy Business
  1. Silicon Valley Bank, the 16th largest in the US, was shut down due to bad investments and cash management issues.
  2. The failure caused panic in the banking community, leading to stock value drops and concerns about similar risks in other banks.
  3. The unique situation of Silicon Valley Bank and its impact on the tech sector may not necessarily lead to a widespread banking crisis.

Systemic Incentives

Confronting the Future • 137 implied HN points • 30 Aug 23
💰 Finance Banking Stablecoins Financial system Inclusion Competition
  1. When you deposit money into your checking account, the bank can use it however they want and only pay you a tiny amount, like 0.42% on average.
  2. Using stablecoins backed by short-dated T-bills can eliminate subsidizing risky borrowers, black box bank solvency issues, and slow payment transfers.
  3. Stablecoins may revolutionize the financial system by ensuring users do not subsidize risky borrowers, avoiding complex bank solvency risks, and eliminating legacy payment delays.

"Troubled" Axiom Bank Retaliated Against AML Whisteblowers, Ex-Staffers Say

Fintech Business Weekly • 66 implied HN points • 20 Oct 24
💰 Finance Banking Compliance Regulation Fintech Legal
  1. Axiom Bank faced serious allegations of retaliation against former employees who raised concerns about compliance and risk management issues. The complaints suggest that the bank ignored safety regulations and retaliated against those who spoke up.
  2. TomoCredit, facing financial struggles, defaulted on its debts and is being sued for not paying vendors. The company also has legal challenges over misleading practices related to its credit-building products.
  3. Both Axiom Bank and TomoCredit reveal challenges in the fintech sector related to compliance, financial stability, and ethical practices. These cases highlight the risks involved in the rapidly changing financial technology landscape.

VyStar Invested $20M Into “Dysfunctional” Nymbus; “Botched” Transition Led To Consent Order, $1.5M Penalty

Fintech Business Weekly • 59 implied HN points • 03 Nov 24
💼 Business Fintech Investments Banking Legal issues Consumer Protection
  1. VyStar Credit Union faced major issues after investing $20 million in Nymbus due to a failed transition to a new online banking platform.
  2. The Consumer Financial Protection Bureau ordered VyStar to pay a $1.5 million penalty for unfair practices during the transition process, which left customers unable to access their accounts.
  3. Nymbus is currently involved in multiple legal disputes with clients, claiming it failed to deliver promised services and is now reportedly trying to extort money from a former customer.

Watched pots, petards and black ducks

The Jolly Contrarian • 179 implied HN points • 07 Apr 23
💼 Business Risk management Regulation Banking Crisis Management Organizational Structure
  1. Consider supporting independent content creators financially to help sustain quality content production.
  2. Complex regulations like Basel III can be so convoluted that even regulators may not fully understand the consequences, highlighting potential systemic risks.
  3. Banks need to focus on managing both known and unknown risks, including risks that may not be obvious or mentioned in regulations, to prevent potential disasters like financial crises and organizational failures.

The Fed's Hidden Put

Concoda • 437 implied HN points • 18 Jun 23
💰 Finance Markets Liquidity Funding Monetary Policy Banking
  1. The repo market plays a crucial role in providing liquidity to the financial system globally.
  2. The repo market structure involves lenders like money market funds connecting with borrowers like hedge funds through various intermediaries.
  3. Recent changes in the repo market dynamics may lead to the Fed utilizing it as a tool for market stimulation.

Crash Course in Corporate Financial Restructuring

DeFi Education • 519 implied HN points • 08 Jul 22
💰 Finance Corporate Finance Restructuring Investment Banking Consulting
  1. Corporate financial restructuring helps businesses recover from financial difficulties. It's like giving a struggling company a fresh start.
  2. The topic is complex and many experts have written books about it. This means there’s a lot to learn that can't be covered in just one article.
  3. Understanding the key points of restructuring can help people make better decisions in business. It's important to grasp the basics if you're involved in finance.

Big Banks and Credit Unions- An overview[Finance Fridays]

Technology Made Simple • 119 implied HN points • 26 May 23
💰 Finance Banking Investing Personal Finance Comparison Financial Literacy
  1. Banks are for-profit while credit unions are non-profit. Credit union customers have more ownership and transparency in decision-making.
  2. Credit unions usually offer higher interest rates on savings and have lower fees compared to banks.
  3. Credit unions tend to be more flexible in customer service and product offerings, while banks typically have more branches and services.

SVB Collapse - Solutions

The Odin Times • 117 implied HN points • 11 Mar 23
💼 Business Entrepreneurship Finance Investing Legal Banking
  1. Silicon Valley Bank collapsed due to financial issues caused by low interest rates and poor investment decisions.
  2. Short-term liquidity issues are expected for founders and investors, but long-term recovery is likely.
  3. Resources like startup ecosystem resources, legal documents, and banking solutions are available to help those affected by the SVB collapse.

How Oversold Are Regional Bank Stocks?

Policy Tensor • 117 implied HN points • 04 May 23
💰 Finance Market Analysis Investing Banking Financial Crisis
  1. US blue-chip equities are a contested and efficient market, so price fluctuations usually revert to fundamentals.
  2. During market distress, patient investors with deep pockets may swoop in to buy assets at undervalued prices.
  3. Regional bank stocks are currently oversold, with prices far below economic fundamentals, presenting a potential opportunity for value investors.

Arkansas Congressman’s Proposal To “Make Community Banking Great Again”

Fintech Business Weekly • 44 implied HN points • 24 Nov 24
💰 Finance Banking Regulation Payments Fintech Legislation
  1. A Congressman from Arkansas has a plan to help community banks. He wants to improve regulations to make banking easier and more fair for smaller banks.
  2. The CFPB has decided which digital payment apps will be closely monitored. Apps that process a lot of transactions, like Venmo and Cash App, will need to follow new rules to protect consumers.
  3. During a recent hearing, top banking officials talked about the health of the banking system. They mentioned the need for stronger risk management and staying updated with new financial technologies.

Is Japan’s Inflation Really At a 40-Year High?

Japan Economy Watch • 259 implied HN points • 21 Nov 22
💰 Finance Inflation Banking Economy Monetary Policy
  1. Japan's inflation trend is not accurately represented by the headline figure of a 40-year high, considering the measure used is specific and not reflective of overall inflation.
  2. Year-to-year comparisons of inflation can be misleading, especially for products with price volatility, potentially skewing the true underlying trend.
  3. The causes and implications of inflation must be carefully analyzed to determine the appropriate monetary policy response, balancing economic growth with the impact of higher interest rates.

The Demise of Silicon Valley Bank

Net Interest • 496 implied HN points • 10 Mar 23
💰 Finance Banking Regulation Deposits Securities Bailout
  1. The demise of Silicon Valley Bank was caused by a collapse due to interest rate risk management and significant deposit outflows.
  2. Silicon Valley Bank's strategy of investing in securities was affected when rising interest rates led to significant unrealized losses, making the bank technically insolvent.
  3. The bank faced challenges in managing deposit outflows and was unable to satisfy demands due to a concentrated customer base and limited options like tapping into its securities portfolio.

The first rule of systemic solvency club...

The Jolly Contrarian • 159 implied HN points • 24 Mar 23
💰 Finance Banking Investing Capital Markets Financial Regulations Financial Instruments
  1. Bank runs often reflect lack of confidence, and denials of trouble can signal trouble.
  2. Tier 1 capital in banking is crucial for financial stability and ensuring debts are paid.
  3. Alternative tier 1 capital, like AT1, provides a buffer in crises but can behave like debt or equity, impacting investors differently.

The FED has left the US Banking System Destabilized after Unprecedented Interest Rate Cycle

Modern Value Investing • 98 implied HN points • 12 Mar 23
💰 Finance Banking Interest Rates Economy Federal Reserve Monetary Policy
  1. US banks are facing increased risks of deposit outflows due to systemic vulnerabilities in the banking system.
  2. Unattractive interest rates on deposits compared to treasuries have left US banks trapped without sacrificing profitability.
  3. The FED must act quickly by reducing interest rates to stabilize the banking system and prevent further harm to the economy.