The Institutional Risk Analyst

GS is a securities dealer first and foremost and has no comparative advantage as a bank.

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.

CEO Patrick Collison is guiding investors and the media to a $200 million profit in 2023. Selective disclosure??

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

Our view is that the BKI purchase is a horrible deal for ICE shareholders, a value killer of epic proportions

We suspect that the IMBs will be sellers of conventional assets to defend their Ginnie Mae MSRs. Banks may be buyers of conventional assets

The risk-adjusted return on capital for BK is negative and probably lower than Goldman, the highest risk large US bank

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

Ally is still more finance company than bank and really has no core deposit base worthy of the name.

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

In this issue of The Institutional Risk Analyst, we speak to Mike Patterson, COO of Freedom Mortgage.

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...

In other words, those residual claims on crypto issuers that have been trading at pennies on the dollar may have no value whatsoever.

The largest banks continue to serve as a haven for refugees from crypto fraud schemes and the fintech swoon, but are not cheap

Will Fannie Mae and Freddie Mac require another federal rescue in 2023 or beyond?

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

Like most nonbanks (and Goldman Sachs is predominantly a nonbank), volumes are falling and funding costs are rising.