Topic:

Stress Testing

  • Will More Bank Regulation Reduce Share Prices?

    During a recent Q&A session with investors and analysts, Andy was asked, “how much will bank earnings suffer because of the anticipated increased regulatory burden after SVB?” The implication was that more regulation increases expenses and/or reduces opportunities, which, in turn, reduces earnings and share prices.… Continue Reading


  • Bank Regulation after SVB

    Below are our nine initial impressions of the Fed’s report.1  All emboldening is ours. Our citations are not exhaustive nor are they necessarily exclusive to one impression, only, but we only show a citation once. Overall, anticipate more supervision—more exams, more horizontal reviews, and more attempts to reverse … Continue Reading


  • How Do Hurricanes Affect Mortgage Losses?

    There has been much discussion about the effects of climate change and extreme weather on banks’ loan portfolios, and there seems to be a strong interest among both regulators and bankers to develop stress tests around such events. Moreover, modelers of expected losses, like CECL, should consider the implications of … Continue Reading