Better Markets’ Post

Are the largest US banks preparing to sue the Fed? Between this unprecedented move to fend off enhanced capital reserve requirements, the extended inverted yield curve, and NYCB’s $180m additional provision allocated to two specific CRE deals it is shaping up to be a bumpy year for depository institutions. Thoughts??

Title: Top US Banks Prove Resilient in Annual Federal Reserve 'Stress Tests' Hey LinkedIn fam! Just wanted to share some great news - our top US banks have once again come out strong in the annual Federal Reserve 'stress tests.' 🏦 The results are in, and it's clear that these banks are well-prepared to weather challenging economic scenarios. 💪 This is not only a testament to their stability, but also a sign of their commitment to safeguarding the financial system. Check out the full article from Financial Times to dive deeper into the details and implications of these tests. #FederalReserve #Banking #StressTests https://ift.tt/E1nXdv7

Exciting news from the Financial Times: Top US banks have once again proven their stability by successfully passing the annual Federal Reserve 'stress tests.' This is a great testament to the resilience and strength of the banking sector. It's reassuring to see that these institutions are well-prepared to weather economic challenges and provide continued stability to the financial system. Kudos to the banks for their robust performance! #FinancialStability #USBankingSector #FederalReserveStressTest https://ift.tt/E1nXdv7

Wall Street Expects ‘Cautious’ Payouts After Bank Stress Tests LINK: https://lnkd.in/esyArUkJ #BankingAndFinanceNews #Banking #Regulations Please Repost

“More than 300 banks had half of their assets in securities in the third quarter, Federal Deposit Insurance Corp. data analyzed by The Wall Street Journal showed. At roughly 100 of those banks, the total was more than 75%. Across U.S. banks, 19% of assets were securities at midyear, according to New York Fed data.” Banking Crisis Plays Out at America’s Smallest Lenders | via The Wall Street Journal https://lnkd.in/e2-bMJGq

Banks are urging the U.S. Federal Reserve to overhaul a draft rule on bank capital, part of the ongoing Wall Street effort to modify the "Basel Endgame" proposal. The draft rule, introduced in July, aims to recalibrate how banks calculate the cash they must set aside to cover risks. Banks argue that the rule is unnecessary, given the industry's existing capital levels, and claim it will adversely impact various services and products. Despite banks expressing concerns, the Fed, led by Michael Barr, maintains that additional capital is essential for safeguarding against unforeseen shocks. The industry's negative comments may prompt the Fed to consider a more comprehensive revision or re-proposal. #Banking #Regulation #FederalReserve https://lnkd.in/eAz8mVYP

You may not have felt the sizeable waves created by the bank collapses of 2023 like those of us in the banking industry. But, threats continue to loom large in the industry and tensions have increased over proposed rule changes by officials, with lenders arguing they'll hinder operations without addressing root issues. Regulators cite last year's crisis to push for reforms, noting rising risks in real estate markets and problem banks. Hopefully a coherent plan can be established before any further failures occur. https://nyti.ms/3Vk4CV8

Here's how the demise of several regional banks could impact the broader economy and capital markets: https://bit.ly/40qMRCM.

The U.S. Federal Reserve is considering changes to the capital requirements for the largest American banks, potentially saving them billions by reducing their GSIB surcharge. This adjustment would reflect economic growth and the banks' relative size in the global economy more accurately. Such a move could significantly bolster the financial flexibility and stability of these major banking institutions. https://lnkd.in/gtGMfDnk

My Financial Times op-ed today shows how the Fed has again painted itself into a very wet corner with the Bank Term Funding Program.  It needs to be closed, but there never should have been a need for the Fed to open it.  Closing it now even as regional banks face existential threats from all the pending regs will further consolidate the banking system and empower nonbanks, not end moral hazard or restore market discipline as the Fed wishes it would. #banks #nonbanks #federalreserve #bankfundingprogram #regionalbanks