The hottest Banking Substack posts right now

And their main takeaways
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Top Finance Topics

The Macro Story of SVB Isn't Just About the Fed

Without Warning • 196 implied HN points • 05 Jul 23
💼 Business Banking
  1. SVB's business model relies heavily on uninsured deposits to support the innovation sector.
  2. The narrative around SVB's challenges involves blaming the Fed for its interest rate policies and the impact on bank assets and liabilities.
  3. The uniqueness of SVB's model in banking the Silicon Valley innovation economy raises questions about regulatory changes and potential consequences for American innovation.

Why Does Bank Accounting Seem So Backwards?

Without Warning • 196 implied HN points • 06 Jun 23
💰 Finance Banking
  1. Understanding the business is more important than fixing the accounting in banking.
  2. Marking bank assets to market interest rates may not make sense due to unique aspects of bank deposits.
  3. Bank accounting rules may not accurately reflect the reality of different banking business models and can lead to economic distortions.

SHARKTOPUS VS PTERACUDA

ANDREA CECCHI Newsletter • 176 implied HN points • 30 Oct 23
💰 Finance Banking
  1. The world's economic system is based on creating continuous debt to repay previous debt.
  2. War serves multiple purposes, including economic gain and destruction.
  3. Wars are often viewed as a 'racket,' benefiting certain entities at the expense of others.
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How Banks (Zeros) Make Money

DeFi Education • 899 implied HN points • 12 Apr 22
💰 Finance Banking
  1. Banks make money by accepting deposits and giving loans. They charge fees for services like managing assets and processing transactions.
  2. Decentralized finance (DeFi) is changing how finance works, allowing people to cut out banks and manage their money directly. This means banks might lose some of their income.
  3. Crypto and other digital methods are making it easier for people to manage their money and investments without needing traditional banks. This could change the banking industry a lot in the future.

What Is Apple Up To With Its Digital ID?

Fintech Business Weekly • 22 implied HN points • 23 Nov 25
💰 Finance Banking
  1. Apple now lets people create a Digital ID in Wallet from a U.S. passport, which greatly expands who can hold a mobile credential. Real-world acceptance is still very limited and mostly confined to TSA checkpoints.
  2. Apple is emphasizing privacy and minimal data sharing for its Digital ID and is playing a long game to grow user adoption so merchants and services will add support. This slow-but-steady approach aims to make use cases like KYC and travel booking more viable over time.
  3. Synapse’s Chapter 11 was dismissed but big questions remain about missing consumer funds, reserve money held by partners, and ongoing criminal and civil probes. At the same time, banks are striking open-banking fee deals and regulators are allowing banks to hold crypto for gas fees, showing shifting industry and regulatory dynamics.

Links - 03/13/2023

Value Investing World • 176 implied HN points • 14 Mar 23
💰 Finance Banking
  1. When uncertain, we trust the crowd, assuming they know something we don't.
  2. The crowd is often wrong because they follow social proof, not superior information.
  3. Learn from individual experts and unique perspectives, rather than crowd mentality.

Trump

Life in the 21st Century • 176 implied HN points • 06 May 23
🇺🇸 U.S. Politics Banking
  1. Anecdote about meeting M.I.A. in Las Vegas and the unique experience that followed.
  2. Reflections on the financial system and Jamie Dimon of JPMorgan's impact.
  3. Call to Democrats to break up big banks like JPMorgan to prevent Trump's re-election.

Is the Fed Financing the FDIC?

Without Warning • 176 implied HN points • 04 Sep 23
💰 Finance Banking
  1. The FDIC is primarily funded by banking industry fees, not congressional appropriation.
  2. During the Global Financial Crisis, the FDIC did not borrow money from the Fed but instead used clever financial maneuvers like prepayments to maintain liquidity.
  3. The FDIC may be utilizing the Fed's loans as a form of financing, with evidence suggesting that FDIC guarantees are used to back these loans, allowing for liquidity creation.

The Physiocratic Platform: Banking

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

CFPB Proposes Rule To Close TILA Overdraft "Loophole"

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

In "Debanking 2.0," Trump Sees Himself As A Victim of Discrimination

Fintech Business Weekly • 66 implied HN points • 10 Aug 25
💰 Finance Banking
  1. Trump claims he's a victim of banks unfairly closing his accounts because of his political views. He feels this is discrimination against him and his supporters.
  2. An executive order by Trump aims to stop politicized banking practices that deny services based on beliefs. He wants banks to focus on fair, risk-based assessments instead of political affiliations.
  3. There are ongoing concerns about a proposed law that would require banks to serve all legal customers, regardless of the risks involved. This could make it harder for banks to manage their own risk effectively.

Top Links 545 “Restructuring” Bangladeshi banks. Hurricane Helen’s impact on unemployment. High-speed trading & a fracking good time.

Chartbook • 286 implied HN points • 29 Oct 24
💰 Finance Banking
  1. Bangladeshi banks are going through a big restructuring. This could change the way they operate and help improve their services.
  2. Hurricane Helene had a significant effect on unemployment rates. Many people lost their jobs because of the hurricane's impact.
  3. High-speed trading continues to play a lively role in the financial markets. It’s a fast-paced area that creates both opportunities and challenges.

Infographics: U.S. Repo Market Mechanics

Concoda • 237 implied HN points • 10 Dec 24
💰 Finance Banking
  1. The U.S. repo market is a place where banks and financial institutions borrow and lend money, often overnight.
  2. Understanding how the repo market works is important because it affects interest rates and overall market stability.
  3. Visual infographics can help simplify complex topics like the repo market, making it easier for everyone to understand.

Water Station Founder, ex-Jefferies Manager Indicted In Alleged SBA-Linked Ponzi Scheme

Fintech Business Weekly • 59 implied HN points • 17 Aug 25
💰 Finance Banking
  1. Two individuals linked to Water Station, a company involved in a Ponzi scheme, have been indicted for fraud. They allegedly took in $270 million from investors while misusing funds meant for legitimate business.
  2. Victims of the Synapse bankruptcy may face a long wait for any compensation, as the process to determine payouts is complicated and time-consuming. It could take nearly two years to see any money return to affected users.
  3. Evolve Bank has a new CEO who claims the bank has acted responsibly amid challenges stemming from the Synapse situation. However, comments made by the CEO have raised questions about the bank's actual conduct during the crisis.

Endgame #3

The Dollar Endgame • 119 implied HN points • 29 Nov 23
💰 Finance 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.

Stockpicker’s Paradise

Net Interest • 13 implied HN points • 12 Dec 25
💰 Finance Banking
  1. Dispersion within the financial sector has returned after years of muted differences, creating the widest gap between top and bottom performers since 2009.
  2. That renewed dispersion is a stockpicker’s paradise: specialist, long/short managers with deep financial knowledge are outperforming generalists and capturing big winners and losers.
  3. Structural shifts like higher rates and the end of the ‘free money’ era, plus divergent performance across banks, payments and asset managers, suggest active, specialized investors may keep finding opportunities into 2026.

Eurodollar I: Origins

The Dollar Endgame • 139 implied HN points • 07 Oct 23
💰 Finance Banking
  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
  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
  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.

WTHIH? The Bank Run Version of 2023

Philoinvestor • 137 implied HN points • 13 Mar 23
💰 Finance Banking
  1. Silicon Valley Bank faced a liquidity problem due to dropping deposit balances from VC-backed companies.
  2. Traditional banking model of borrowing short and lending long can be fragile.
  3. Forced recapitalization could lead banks to drastic financial losses.

Systemic Incentives

Confronting the Future • 137 implied HN points • 30 Aug 23
💰 Finance Banking
  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.

Infographics: The Fed's Standing Repo Facility In Action

Concoda • 216 implied HN points • 25 Nov 24
💰 Finance Banking
  1. The Federal Reserve has a special tool called a repo facility to manage money supply in the economy. It helps banks borrow money quickly when they need it.
  2. This repo facility can provide short-term loans to banks, which helps keep the financial system stable. It's like a safety net during times of financial stress.
  3. Understanding how this facility works is important for grasping the bigger picture of economic stability and the Fed's role in it. It helps us see how money flows in the economy.

The Deposit Myth

Altered States of Monetary Consciousness • 481 implied HN points • 08 Mar 24
💼 Business Banking
  1. When it comes to 'bank deposits', the traditional verb-noun pairing can be misleading. The term 'deposit' typically implies something being put in, but with banks, it refers to something issued out by the bank like digital casino chips.
  2. Comparing banks to casinos can help understand the concept better. When you 'deposit' cash in a bank, it becomes their asset, and you receive digital chips as a liability. This is opposite to the usual understanding that a deposit is something put in the bank.
  3. The language around 'bank deposits' can create misunderstandings, especially in economics. An update in how we define and understand 'bank deposits' can help clear up these misconceptions and align with the actual operations involved.

Watched pots, petards and black ducks

The Jolly Contrarian • 179 implied HN points • 07 Apr 23
💼 Business Banking
  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.

MoneyLion Pays $1.75M to Settle Military Lending Act Allegations

Fintech Business Weekly • 14 implied HN points • 30 Nov 25
💰 Finance Banking
  1. U.S. banks showed stronger results in Q3 with higher net income, slightly wider net interest margins, lower credit loss provisions, and smaller unrealized losses on securities.
  2. MoneyLion will pay about $1.75 million and must change its practices after regulators found it violated the Military Lending Act by letting membership fees push covered borrowers’ rates above the 36% cap and by blocking cancellations and certain collections.
  3. Most banks are not prioritizing stablecoins or tokenized deposits — only a tiny number see issuing a stablecoin as a high priority, though there is modest interest in holding reserves or offering custodial services for third‑party issuers.

Crash Course in Corporate Financial Restructuring

DeFi Education • 519 implied HN points • 08 Jul 22
💰 Finance Banking
  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.