Nathan Stovall’s Post

🏦 Bloomberg reports that Fed Vice Chair for Supervision, Michael Barr, will preview the latest updates to the bank capital rules today. The anticipated impact on large banks has been revised down to 9%, a significant drop from the initial 16% proposed in July 2023. This shift comes after extensive feedback from the banking industry, highlighting concerns over the potential consequences of overly stringent regulations. Excessive tightening of capital rules could reduce lending and liquidity from banks, ultimately shifting financial activities—and risk—toward non-bank entities. #banking #regulation #riskmanagement #capitalrules

This is the right answer for the industry. The current proposal would be excessive and unnecessary. Modifying the requirements would still give banks an ample cushion. When you look at the CCAR data on banks even in the worst case scenarios, banks passed the stress test. The isolated failures we have seen in 2023 were failures in management and regulatory agencies to act when the problems had been identified.

𝐋𝐞𝐭'𝐬 𝐭𝐚𝐥𝐤 𝐚𝐛𝐨𝐮𝐭 𝐡𝐨𝐰 𝐛𝐚𝐧𝐤𝐬 𝐚𝐫𝐞 𝐝𝐨𝐢𝐧𝐠! ❓Are we heading into the next banking crisis? ❓Why should you keep an eye on the US commercial real estate market? ❓Are banks and regulators taking the situation seriously? 𝐅𝐢𝐧𝐝 𝐨𝐮𝐫 𝐭𝐚𝐤𝐞 𝐨𝐧 𝐢𝐭 𝐡𝐞𝐫𝐞: https://rb.gy/89fkbi. One thing is for sure: 𝐁𝐚𝐧𝐤 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐢𝐬 𝐧𝐨𝐭𝐡𝐢𝐧𝐠 𝐭𝐨 𝐛𝐞 𝐭𝐚𝐤𝐞𝐧 𝐟𝐨𝐫 𝐠𝐫𝐚𝐧𝐭𝐞𝐝 - even if to some, it might have seemed like it for a while. #banks #assetprotection #wealthmanagement

𝐋𝐞𝐭'𝐬 𝐭𝐚𝐥𝐤 𝐚𝐛𝐨𝐮𝐭 𝐡𝐨𝐰 𝐛𝐚𝐧𝐤𝐬 𝐚𝐫𝐞 𝐝𝐨𝐢𝐧𝐠! ❓Are we heading into the next banking crisis? ❓Why should you keep an eye on the US commercial real estate market? ❓Are banks and regulators taking the situation seriously? 𝐅𝐢𝐧𝐝 𝐨𝐮𝐫 𝐭𝐚𝐤𝐞 𝐨𝐧 𝐢𝐭 𝐡𝐞𝐫𝐞: https://rb.gy/89fkbi. One thing is for sure: 𝐁𝐚𝐧𝐤 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐢𝐬 𝐧𝐨𝐭𝐡𝐢𝐧𝐠 𝐭𝐨 𝐛𝐞 𝐭𝐚𝐤𝐞𝐧 𝐟𝐨𝐫 𝐠𝐫𝐚𝐧𝐭𝐞𝐝 - even if to some, it might have seemed like it for a while. #banks #assetprotection #wealthmanagement

𝐋𝐞𝐭'𝐬 𝐭𝐚𝐥𝐤 𝐚𝐛𝐨𝐮𝐭 𝐡𝐨𝐰 𝐛𝐚𝐧𝐤𝐬 𝐚𝐫𝐞 𝐝𝐨𝐢𝐧𝐠! ❓Are we heading into the next banking crisis? ❓Why should you keep an eye on the US commercial real estate market? ❓Are banks and regulators taking the situation seriously? 𝐅𝐢𝐧𝐝 𝐨𝐮𝐫 𝐭𝐚𝐤𝐞 𝐨𝐧 𝐢𝐭 𝐡𝐞𝐫𝐞: https://rb.gy/89fkbi. One thing is for sure: 𝐁𝐚𝐧𝐤 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐢𝐬 𝐧𝐨𝐭𝐡𝐢𝐧𝐠 𝐭𝐨 𝐛𝐞 𝐭𝐚𝐤𝐞𝐧 𝐟𝐨𝐫 𝐠𝐫𝐚𝐧𝐭𝐞𝐝 - even if to some, it might have seemed like it for a while. #banks #assetprotection #wealthmanagement

With now the current extraordinarily high % of regional banking exchange traded fund shares being short-sold (over 90%) along with a sizable collapse in the valuation of regional banks, are the short-sellers overstaying their welcome at this juncture? (4/25/24)

Since the observation below in April, the regional banking index has indeed rallied roughly 10%. Regardless, the % of regional banking exchange traded fund shares short-sold continues to register at an extreme elevated level of more or less 90% which begs the question once again, are the short-sellers overstaying their welcome? (5/13/24)

#Financialinstitutions are finding their footing after the bank failures in early 2023, but now they’re bracing themselves for new regulations. Read all about it from RSM senior analyst Angela Kramer.

#Financialinstitutions are finding their footing after the bank failures in early 2023, but now they’re bracing themselves for new regulations. Read all about it from RSM senior analyst Angela Kramer.

#Financialinstitutions are finding their footing after the bank failures in early 2023, but now they’re bracing themselves for new regulations. Read all about it from RSM senior analyst Angela Kramer.