The Institutional Risk Analyst

The Trump budget package is priority number one on Capitol Hill, but odds of the big tax bill passing are falling every day. The White House still needs 25 votes in the House and May is upon us.

So when we ask why large banks are so big, the answer is that the Federal Reserve Board allows large BHCs to use more leverage

The Fed by definition cannot make a profit and is always an expense to the Treasury, thus operating losses are a expense to the taxpayer

The real message to the FOMC is this: hike another 75bp in July and then let the Fed funds target sit for a few meetings...