The Institutional Risk Analyst

Given that the US Treasury is paying 4% for 90-day T-bills, you can see how far banks have to go to become competitive on rates

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

Most major banks grew larger during quantitative easing. Now many of these banks will shrink in terms of assets and also earnings in Q1 2023

At the Fed, because “confidence” is considered a factor in “policy,” it is OK to fib and obfuscate about the true cost of monetary policy.

We liked the NYCB + Flagstar story prior to the transaction with the FDIC for the assets and deposits of Signature Bank.

Treasury Secretary Janet Yellen and Fed Chairman Jerome Powell are another bank failure or two away from returning to the private sector.

Mark Twain called Washington ''the grand old benevolent National Asylum for the Helpless'' in his classic "The Gilded Age."

We recently added Western Alliance (WAL) and GHLD to our portfolio

By any reasonable standard, Janet Yellen should have already resigned, but not in the strange world of Washington.

Last week not a single member of the Big Media managed to ask Fed Chairman Jerome Powell about the state of the US banking system

The Federal Open Market Committee has arguably lost control of monetary policy and has placed America's banks in grave risk.

Fact is, Dr. Brainard has primary culpability in the growing economic pain being felt around the country.

As the FOMC moves short-term rates towards 6%, we expect to take another run at double-digit rates for prime residential mortgage loans.

The big take away from Q4 2022 earnings is that credit expenses are headed higher and at a brisk pace

Crypto, of course, is not an asset as much as a bad idea that was given life by Quantitative Easing

We hear in the channel that regulators are making their views of future loss probabilities very clear in guidance to the top banks

The Fed’s de facto embrace of inflation encourages misallocation of economic resources on a grand scale....

But nothing lasts forever in mortgage land or in financials. Stay tuned and pay attention to LT rates and spreads...

The US government now owns the largest reverse lender in the country.

Many in the Buy Side chorus are looking forward to lower interest rates, but we are concerned that next year could really be about solvency