Insights & News
Recent Insights
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. That seems to be a common, “knee-jerk”…
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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 the loosening of scrutiny in 2017…
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How Do Hurricanes Affect Mortgage Losses?
Table of Contents 1. Introduction 2. Hurricane Harvey, Texas, 2017 3. Hurricane Irma, Florida, 2017 4. Hurricane Katrina, Louisiana, 2005 5. Flooding in Louisianna, 2016 6. Hurricane Katrina, Mississippi, 2005 7. Our Conclusions Table of Contents 1. Introduction 2. Hurricane Harvey, Texas, 2017 3. Hurricane Irma, Florida, 2017 4. Hurricane Katrina…
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It’s Never about Capital!
…It’s Always about Liquidity! Since Silicon Valley Bank’s demise, many of the usual suspects have been yapping and editorializing about the importance of capital and capital ratios, but it’s never about capital. It’s always about liquidity! Consider a firm with $X in liabilities, and let X be as large as you want…billions, trillions…
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SR 15-18 vs SR 15-19 vs HCR
Table of Contents 1. Introduction 1.A. Federal Reserve Tailoring Framework 1.B. How was guidance applied before revision? 1.C. Big picture: What has changed? 2. Background on CCAR Requirements 3. Differences in Sections 4. Differences in Appendices Below, we summarize the guidance and analyze the recent revisions to the tailoring framework. We focus…
Read MoreWill 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…
Read MoreBank 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…
Read MoreHow Do Hurricanes Affect Mortgage Losses?
Table of Contents 1. Introduction 2. Hurricane Harvey, Texas, 2017 3. Hurricane Irma, Florida, 2017 4. Hurricane Katrina, Louisiana, 2005 5. Flooding in Louisianna, 2016 6. Hurricane Katrina, Mississippi…
Read MoreIt’s Never about Capital!
…It’s Always about Liquidity! Since Silicon Valley Bank’s demise, many of the usual suspects have been yapping and editorializing about the importance of capital and capital ratios, but it’s…
Read MoreSR 15-18 vs SR 15-19 vs HCR
Table of Contents 1. Introduction 1.A. Federal Reserve Tailoring Framework 1.B. How was guidance applied before revision? 1.C. Big picture: What has changed? 2. Background on CCAR Requirements 3. Differences…
Read More