The Institutional Risk Analyst

In opposing Basel III, Chopra is doing the bidding of Senator Elizabeth Warren (D-MA) but big banks are very happy to have no rule at all.

The Citi decision to exit mortgage servicing perhaps made sense in 2017, but today not so much.

If you believe that there is no recession coming in 2025, what is the logical response from an informed investment professional?

Why should a private Fannie Mae be a 20% risk weight under Basel III, but PFSI or Mr. Cooper (COOP) are 100%?

The Q3 interest rate rally still leaves the industry with a negative capital position since the average securities yield is only 3%

The big story nobody is discussing is the fact that large banks led by JPM, BAC and TFC continue to sell off briskly

In the third quarter of publishing the Indices, so far picking quality banks seems to matter more than following the passive ETF herd

SCHW needs to take advantage of their strong operating leverage and repair some needless damage done during COVID by inept bank management.

Banks lose money every single day by holding onto a below market security from the 2019-2021 period.

If you were really, REALLY going to do mortgage warehouse lending in today's market, KEY would be the better platform, not BNS.

The market tantrum which began on Friday was largely over by the market close on the following Tuesday.

We hear in the channel that banks with festering multifamily exposures are paying north of 10% for similar CRT transactions.

GS saw loss provisions fall slightly in Q2 2024 to $282 million but the number was still $600 million in the first half of the year...

Notice that the Fed stress test is silent on trillions of dollars in mark-to-market losses facing US banks from COVID-era securities

The larger banks led the way in January and February, but today the top 25 names in terms of total return include many smaller banks.

The Fed bank stress tests are another sign of magical thinking in Washington.

Citigroup leads the pack with a net loss rate of 133 basis points (bp) that is almost five times the average for Peer Group 1 at 27 bp.

Powell won’t hit the two percent target, but he won’t change the target either.

Direct lenders are the pawnbrokers of the 21st Century for subprime commercial borrowers, usually firms financed via leveraged buyouts.

We think it is reasonable to push expectations of a cut in the target for Fed funds into Q1 2025.