The hottest Deposits Substack posts right now

And their main takeaways
Category
Top Finance Topics

Evolve Exec Pleads The Fifth in Missing Money Case

Fintech Business Weekly • 44 implied HN points • 18 Jan 26
💰 Finance Deposits
  1. Evolve’s tie-up with Synapse left thousands of customers unable to access funds, reconciliations showed huge shortfalls, a key exec invoked the Fifth on FDIC insurance, and the bank is still finding and distributing more money more than 600 days after the freeze.
  2. Evolve is resisting document requests by citing consumer privacy rules even though it was previously hacked and leaked terabytes of data, and court filings say the bank doesn’t know how the forensic firm Ankura calculated amounts returned to users while seeking to seal deposition transcripts.
  3. bunq is reapplying for a U.S. national bank charter under a new U.S. holding structure, but faces tough odds: other European digital banks have struggled in America, the addressable market of European expats is small, and bunq’s fee-driven model, limited lending, and clunky app may not win many U.S. customers.

The Demise of Silicon Valley Bank

Net Interest • 496 implied HN points • 10 Mar 23
💰 Finance Deposits
  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 Smallest Bank in Tennessee Grew Fast With BaaS. Why It May Give The Entire Industry A Hangover.

Fintech Business Weekly • 267 implied HN points • 27 Aug 23
💰 Finance Deposits
  1. The smallest bank in Tennessee saw significant growth by leveraging BaaS partnerships, but this rapid expansion may raise concerns about the bank's ability to manage increased complexity.
  2. The Herrington family behind Lineage Bank has a history of running banks, facing challenges and controversies in their previous ventures.
  3. Synapse, a key BaaS partner of Lineage Bank, has faced regulatory scrutiny and may be pressuring Lineage to approve more programs, highlighting risks in complex financial partnerships.
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Banking on Pressure

The Last Bear Standing • 70 implied HN points • 12 May 23
💰 Finance Deposits
  1. Both cash liquidity and solvency are crucial for banks. If customers or investors worry about either, they may withdraw funds or sell stock.
  2. Bank liquidity has been fluctuating, impacted by events like the pandemic and quantitative easing/tightening, leading to concerns about insolvency and the need for temporary borrowings.
  3. Deposit fluctuations in banks are tied to the Federal Reserve's actions like quantitative easing and tightening, with large banks experiencing the fastest decline in deposits.

The Death of First Republic?

Apricitas Economics • 57 implied HN points • 29 Apr 23
💰 Finance Deposits
  1. First Republic is facing a financial crisis and potential FDIC takeover due to significant uninsured deposit withdrawals.
  2. The bank's investments in long-duration assets like real estate loans have suffered as interest rates rose.
  3. The broader US banking system remains stressed with decreasing deposits and increased borrowing, impacted by the inverted yield curve and changing depositor dynamics.

The Risks Still Lurking in the Banking System

Apricitas Economics • 42 implied HN points • 08 May 23
💰 Finance Deposits
  1. The American banking system is facing increased risks with several banks failing and many regional banks under pressure
  2. Market movements for surviving banks show negative excess returns, with declining valuations particularly for mid-sized regional banks
  3. Understanding rates risk in the banking system requires looking at exposure to long-term assets, especially in real estate lending, and the impact on uninsured deposits

Time to Panic?

Confronting the Future • 2 HN points • 12 Mar 23
💰 Finance Deposits
  1. Silicon Valley Bank faced a major bank failure, leading to significant implications in the banking sector.
  2. Depositors should be prioritized in bank resolutions to maintain stability and prevent mass panic.
  3. Bank runs can have widespread consequences, requiring regulators to ensure depositor confidence and prevent systemic failures.

#156 - Silicon Valley Bank: An Autopsy

Below the Line from Kevin LaBuz • 7 implied HN points • 26 Mar 23
💰 Finance Deposits
  1. Silicon Valley Bank grew rapidly and reached the 16th largest bank in the US, but struggled with managing its growth.
  2. Banks make money by taking deposits and making loans, operating with fractional reserves and managing a balance between liquidity and lending.
  3. SVB's downfall was fueled by a combination of poor decisions, rising interest rates, and a concentrated deposit base that led to a rapid collapse.