The hottest Banking Substack posts right now

And their main takeaways
Category
Top Finance Topics

Tower of Basel

Net Interest • 13 implied HN points • 25 Jul 25
💰 Finance Banking
  1. Bank regulations have become much longer and more complex over the years, starting from 30 pages in 1988 to over 600 pages now. This shows how regulations keep evolving but may not be improving in effectiveness.
  2. The conversation at the recent regulatory conference included light-hearted moments, like a CEO joking about the excessive bureaucracy in regulations, highlighting a frustration many have.
  3. There was also a discussion about how future jobs might seem trivial to us today, suggesting that work and societal roles are always changing, but some fundamental aspects of life endure.

Running on Empty

The Last Bear Standing • 32 implied HN points • 14 Feb 25
💰 Finance Banking
  1. The Federal Reserve's balance sheet reduction is mostly just moving money around rather than actually reducing the money supply. This means the impact on inflation might not be as significant as it seems.
  2. The Reverse Repo Facility, which helps maintain liquidity in financial markets, is running low. As it decreases, there could be less stability in short-term funding.
  3. While some people say the situation is either a disaster or not a problem at all, it's more complex. We might see tighter banking conditions and more market volatility as the Fed continues its quantitative tightening efforts.

Blue Ridge "Explores Options" For Capital Raise As It Reduces BaaS, Fintech Exposure

Fintech Business Weekly • 126 implied HN points • 19 Nov 23
💰 Finance Banking
  1. Blue Ridge Bank is looking to raise capital and reduce its exposure to banking-as-a-service and fintech.
  2. States like California and Wisconsin are regulating earned wage access, which is positive but adds compliance challenges.
  3. Plaid has launched a subsidiary as a consumer reporting agency, moving towards offering cash flow underwriting services.
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Arkansas Congressman’s Proposal To “Make Community Banking Great Again”

Fintech Business Weekly • 44 implied HN points • 24 Nov 24
💰 Finance Banking
  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.

The Otonomist - March 2023 Issue

The Otonomist • 59 implied HN points • 31 Mar 23
🔮 Crypto Banking
  1. The newsletter discusses options for banking your crypto company, including a new UAE base in Dubai.
  2. Crypto businesses face challenges in opening and maintaining fiat bank accounts due to various factors like government actions and regulations.
  3. OtoCo announces a new entity creation workflow with revised pricing and the launch of a Swiss Association, aiming to provide instant legal containers for entities and DAOs.

Equal Ventures is Hiring Associates

Equal Ventures • 19 implied HN points • 04 Dec 23
💼 Business Banking
  1. Equal Ventures is hiring two Associates for its investment team in New York to work on industry research, investment analysis, and portfolio support
  2. Candidates with 2-4+ years of experience in consulting, equity research, private equity, or investment banking are encouraged to apply, along with those who are intellectually curious, passionate about startups, professional, self-directed, and friendly
  3. Potential applicants are required to email their LinkedIn profile, resume, and answer specific questions related to industry sectors, investment opportunities, contrarian beliefs, and personal passions, with responses expected within 2 weeks

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

Fintech Business Weekly • 96 implied HN points • 11 Feb 24
💰 Finance Banking
  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.

What Happened to the OCC's Chief Fintech Officer?

Fintech Business Weekly • 133 implied HN points • 10 Sep 23
💼 Business Banking
  1. The OCC's Chief Fintech Officer mysteriously disappeared from his role, raising questions about his background and qualifications.
  2. CFPB Director highlights Apple and Google's control over mobile payments, calling out potential anti-competitive practices.
  3. FDIC's Q2 Banking Profile shows declining net income, slightly reduced net interest margins, and continued unrealized losses in banks' securities portfolios.

Seoul Searching

Net Interest • 14 implied HN points • 27 Jun 25
💰 Finance Banking
  1. KakaoBank in Korea has seen its stock rise significantly because it is preparing for the arrival of stablecoins. They filed trademark applications to be ready for changes in the market.
  2. In contrast, traditional banks like Bank of America are still unsure about stablecoins and how impactful they will be.
  3. KakaoBank's growth reflects the changing attitudes toward digital assets in South Korea, showing how new opportunities can arise from the digital finance sector.

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

CalculatedRisk Newsletter • 43 implied HN points • 13 Nov 24
💰 Finance Banking
  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.

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

Fintech Business Weekly • 89 implied HN points • 03 Mar 24
💰 Finance Banking
  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.

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

Fintech Business Weekly • 89 implied HN points • 18 Feb 24
💰 Finance 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.

A Bank of One's Own

Monomythical • 166 HN points • 11 Mar 23
💼 Business Banking
  1. Many startup employees are unable to afford buying equity in the company they work for, leading to missed opportunities.
  2. Traditional banks often do not cater well to the financial needs of individuals involved in startups or venture capital.
  3. There is a need for more institutional support and celebration of diverse backgrounds in the entrepreneurial and creative fields.

An Athenian Odyssey

Net Interest • 13 implied HN points • 20 Jun 25
💰 Finance Banking
  1. Greek banks faced huge challenges after a financial crisis, losing most of their market value and seeing many loans go unpaid.
  2. Despite a tough recovery process, the Greek economy is growing again, and banks are starting to regain investor confidence.
  3. A transformation is underway in Greece, with international banks showing interest in investing, which reflects a healthier banking system.

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

Fintech Business Weekly • 81 implied HN points • 25 Feb 24
💰 Finance Banking
  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.

Too Big To Fail

The Last Bear Standing • 160 implied HN points • 10 Mar 23
💰 Finance Banking
  1. In the mid-2000s, banks faced a significant problem with growing leverage and inadequate cash reserves.
  2. The 2008 financial crisis led to emergency bailouts to address liquidity issues in the banking sector.
  3. While regulations and liquidity injections have reduced the risk of widespread liquidity crises in large U.S. banks, the 'too-big-to-fail' problem persists in the broader financial system.

A Solution for QT

The Last Bear Standing • 135 implied HN points • 24 Mar 23
💰 Finance Banking
  1. Focus on balance sheet policy over interest rates for monetary policy.
  2. Quantitative Easing has a major impact on money supply growth.
  3. Consider 'Operation Squeeze' as a solution to liquidity concerns caused by Quantitative Tightening.

It's Always About Rates

Pits to Pixels • 19 implied HN points • 15 Mar 23
💰 Finance Banking
  1. The focus is always on rates in financial matters.
  2. Speculative assets and crypto are influenced by easy money.
  3. Understanding the direction of rates is key to navigating the financial landscape.

Thank you Silicon Valley Bank...

mainstreetjournal • 19 implied HN points • 24 Mar 23
💰 Finance Banking
  1. Locally owned banks and credit unions offer lower fees, fewer defaults, and higher interest payouts.
  2. Community banks benefit local business and exhibit restraint on risky behavior compared to mid-sized banks like SVB.
  3. SVB's failure highlights the need for public banking, particularly for unbanked individuals and communities without local banks.

Social contagion

Interesting bits • 19 implied HN points • 15 Mar 23
💰 Finance Banking
  1. Banking regulations can impact the stability of financial institutions and the broader economy.
  2. Changes in interest rates and reporting practices can affect the financial health of banks.
  3. Social media and technology have transformed how individuals can influence markets and participate in financial activities.

Bailout Brink

Three quarks • 128 implied HN points • 14 Mar 23
💰 Finance Banking
  1. The 2008 recession drastically impacted the trajectories and beliefs of different generations, shaping their careers and perspectives on work.
  2. The shift from 20th-century life-work balance to 21st-century always-on freelancing has redefined how we engage with news, videos, and money.
  3. Financial crises like the recession reveal the deep intersection between economy, personal identities, and societal structures, prompting reflections on the role of banks, governments, and personal financial management.

CBW Bank, A BaaS Pioneer, Is Up For Sale: Exclusive

Fintech Business Weekly • 59 implied HN points • 17 Mar 24
💼 Business Banking
  1. CBW Bank, a pioneer in Banking-as-a-Service, is up for sale, showing continued challenges in bank/fintech partnerships.
  2. CBW Bank grew significantly under new ownership, focusing on innovation and providing API access for startups and banks to build digital banking solutions faster.
  3. Regulatory shifts and challenges in innovation may have led to CBW's decision to sell, highlighting the impact of changing regulatory attitudes on banks like CBW.

Five Alive

Net Interest • 11 implied HN points • 30 May 25
💰 Finance Banking
  1. The financial sector is changing a lot, with banks losing their traditional power to new players like private credit firms and fintechs. This shift shows how important it is to adapt to keep up with these changes.
  2. Understanding how organizational structure affects success in finance is crucial. A well-set structure can give firms a big advantage, sometimes even more than just picking the right investments.
  3. The line between public and private finance is getting blurrier. Many financial services now rely on government support, and this trend will likely grow as governments use finance to achieve their goals.

Gold Is Back—And So Is Judy Shelton

QTR’s Fringe Finance • 25 implied HN points • 13 Nov 24
💰 Finance Banking
  1. Gold prices are rising due to economic and geopolitical concerns, attracting more interest from central banks. This suggests that many countries are starting to value gold again.
  2. Judy Shelton proposes a new kind of bond that would let people redeem their bonds for gold or dollars, giving the public more control over their money. This could help stabilize the economy.
  3. Shelton believes that moving back to a gold standard could improve trust in the financial system and reduce government control over money supply, which many people see as a good thing.

Brand vs Build

Net Interest • 9 implied HN points • 06 Jun 25
💼 Business Banking
  1. JPMorgan's Chase app used traditional advertising instead of trendy methods, showing off its benefits like 1% cashback to attract customers.
  2. Despite initial success with a large number of customers and deposits, acquiring new customers is getting more expensive for Chase compared to smaller banks like Monzo.
  3. JPMorgan views its UK expansion as a long-term plan, using this venture as a model for potential growth in other markets if it proves successful.

Fannie and Freddie: Single Family and Multi-Family Serious Delinquency Rates Increased in October

CalculatedRisk Newsletter • 23 implied HN points • 27 Nov 24
💰 Finance Banking
  1. Single-family serious delinquency rates showed a slight increase in October, marking 0.55% for Freddie Mac and 0.52% for Fannie Mae. This is still lower than delinquency rates before the pandemic.
  2. Multi-family serious delinquency rates also rose, with Fannie Mae's rate reaching its highest since 2011, excluding pandemic data. This indicates growing challenges in the multi-family housing market.
  3. Delinquent loans are defined as being three or more payments past due or in foreclosure. Despite some increases, many recent loans from 2009 to 2023 are still faring well, indicating overall improvement in loan performance.

What immortal hand or eye: The Archegos affair, Part 1.

The Jolly Contrarian • 39 implied HN points • 23 Jul 22
💰 Finance Banking
  1. Family offices, even though seemingly benign, can engage in risky behavior that can have significant market impacts.
  2. Securities markets are complex environments where probabilistic risk management tools may fail, especially in extreme scenarios.
  3. Regulations requiring banks to pay out variation margins can inadvertently pour petrol on a fire during market volatility, leading to unintended consequences.

The Keynesian Liquidity Trap Fable

QTR’s Fringe Finance • 19 implied HN points • 10 Dec 24
💰 Finance Banking
  1. People often think the economy fails because consumers save too much and spend too little. But saving isn't always bad; it can help strengthen the economy if done right.
  2. When banks lower interest rates to encourage spending, it sometimes backfires. Instead of spending, people might just save more, leading to a 'liquidity trap' where money isn't flowing in the economy.
  3. Expanding the money supply might make it seem like the economy is growing at first, but if savings decline due to previous bad policies, this can actually hurt the economy in the long run.

The Death of Silicon Valley Bank

Apricitas Economics • 81 implied HN points • 12 Mar 23
💰 Finance Banking
  1. Silicon Valley Bank faced severe financial challenges, leading to its voluntary liquidation.
  2. The bank's unique customer base and large exposure to long-term assets were key factors in its downfall.
  3. The failure of SVB highlights broader concerns about financial stability and the impact on the tech industry.