svb
Summers warns Fed against ‘financial dominance,’ urges rate hike
Lawrence “Larry” Summers, former U.S. Treasury secretary.Kiyoshi Ota/Bloomberg Former Treasury Secretary Lawrence Summers said the Federal Reserve shouldn’t be spooked into easing its campaign to contain inflation out of excessive concern about a credit crunch in the wake of the recent banking turmoil. “It would be very unfortunate if, out of solicitude for the banking … [Read more…]
How US banks turmoil is impacting the already hammered housing market – New York Post
How US banks turmoil is impacting the already hammered housing market New York Post
DPA, Subservicing, Loss Mit, Fee Collection Tools; Banking… This is Not 2008; STRATMOR on Customer Experience
The Ides of March⦠And college basketball time. Here in Kentucky (men #6 in the East, Louisville womenâs team #5) I overheard someone on the phone. âYesterday I saw a woman in Walmart with March Madness teeth. She was down to her final four.â March Madness is in full swing, whether it is hoops or bonds. Or bank stocks. Is this really a fundamental structural plunging of the United Statesâ financial system? Doubtful. Moodyâs came out with a warning about downgrading certain banks in the United States. It is not 2008. How much of this is psychology? Tweeting causing a run on deposits? Banks everywhere are looking at their liabilities (deposits, since they owe their depositors money) and assets (the money lent out using their depositorâs money, or securities owned. âLending long and borrowing shortâ works when banks can pay very little on their deposits (like checking accounts earning 0 percent) and take that money and earn 4 or 6 percent on securities. But when the deposit base becomes unstable, and a bank has to liquidate those securities at 80 or 90 cents on the dollar, it becomes a problem fast. (Much more below.) Todayâs podcast can be found here and this week is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking. Todayâs has an interview with Bank of England Mortgageâs Quinton Harris on the art and science of forecasting the housing, mortgage, and bond markets.
Game Off, Game On For Banking Fears
After systemic banking fears died down earlier in the week, Credit Suisse and other European banks are saying “game on!” Stock prices of said banks led a market-wide sell-off in equities overnight. Bonds rallied on the flight-to-safety, and yields are now back near Monday’s lows. With the Fed in the midst of the typical 11-day communications blackout ahead of the next meeting, speculation has been running fairly wild as to how recent events affect the rate outlook. To be fair, most of the “running wild” is a product of the new itself. The Fed’s blackout period only adds a modest amount of uncertainty. If you ask financial markets, everyone is fairly certain the Fed still hikes 25bps next week. After that, it’s anyone’s guess as Fed Funds Futures suggest rate cuts on the horizon. The overnight news brings December’s Fed rate outlook to even lower levels than those seen on Monday. Long story short, the overnight move resets the board to be roughly in line with Monday morning. It’s like one of those placards at the work place that boasts “number of days without an accident.” We got up to “2” yesterday, and rates had risen accordingly. Now it’s back to zero, even though the Credit Suisse rout isn’t the same sort “accident” as SVB or Signature.
12 Best Banks for Startups in March 2023
Silicon Valleyâs ‘bridge bank’ says it’s resumed mortgage originationsÂ
Silicon Valley Bank resumed mortgage originations on Tuesday via its newly established “bridge bank” â just four days after California state regulators took possession of the financial institution.
What the Silicon Valley Bank Collapse Means for You — Even if You Don’t Have Money There
Plus, what role the FDIC plays in it all.
Biggest plunge in bond yields since Volcker era on bank fears
The shift in short-term interest rate markets Monday was unlike almost anything seen for more than four decades, including even the 2008 financial crisis and the aftermath of the Sept. 11 terror attacks. The one-day drop in two-year yields was the biggest since the Volcker era in the early 1980s and surpassed the period surrounding … [Read more…]
IMBs face ripple effect from recent bank failuresÂ
The threat of warehouse-line contractions and margin calls is real for IMBs after a series of bank failures, but not a foregone conclusion, industry experts say.