Update 680 — Regulatory Response to SVB:Feds Saw Problems but Hands Tied by Regs To hear some (the GOP, the WSJ) tell the story, the collapse of Silicon Valley Bank was caused by the Fed’s interest rate policy and regulators asleep at the wheel. But as today’s House Finance Services and yesterday’s Senate Banking Committee …
Update 676 — Run Halted, SVB Dust SettlesImplications for Regulation and US Economy The sudden collapse and seizure of the Silicon Valley Bank Financial Group (SVB) and Signature Bank over the weekend triggered memories of the fear, anxiety, and economic turmoil that followed the bank failures of the 2008 financial crisis. The Biden administration, the …
Update 657 — Investors Ask FTX, WTF?Fraud Ignites Hill Debate on Crypto Reg. In recent weeks, Americans have seen the air begin to go out of two of the biggest political and financial balloons of recent years. Ex-President Trump suddenly trails Florida Gov. DeSantis in GOP 2024 polls by as much as 23 points; “I …
Two signal events occurred in the financial policy space this week. The big bank CEO hearings this week in the House Financial Services and Senate Banking Committees are becoming an annual event featuring both chieftains of banking and important consumers of other public policy issues. CEOs of seven major U.S. banks appeared before Congress and …
Update 590 — Jobs Jump 678K from Jan;Economy Hot but Inflation is too (TY Putin) Whether we know it or not, the U.S. economy is hotter than DC in July. With 678K new jobs added last month and unemployment under 4 percent now, and with omicron largely behind us, the issue is the gaping misperception. This rosy …
Update 588 — Focus on Bank Fees:Overdraft Overhaul; is Junk Next? The specter of the first full-scale war in Europe since 1945 has hit the U.S. economy directly and immediately via capital market sell-offs, to be followed by energy and commodity price hikes and ways to be determined. Perhaps mundane by contrast is the auspicious …
Update 586 — Regulating Stablecoin:Talking Dollar 2.0, Crypto, or Klepto? Sunday’s Superbowl featured more crypto than anything else, suggesting a suddenly flush industry. What are the opportunities and risks that crypto presents? Stability is a rare quality in the world of cryptocurrencies, so where do stablecoins fit in? Are they currencies or securities? Who should …
Update 585 – Sea Change at the Fed? Smooth Sailing for Slate of Nominees Everything from the cost of living to the cost of capital depends on the membership of the Federal Reserve Board. Dr. Lisa Cook, Sarah Bloom Raskin, and Dr. Phillip Jefferson — nominated by the President to fill out the vacancies on …
Update 553 — Last Rodeo at Jackson Hole?Rush to Renominate Fed Chair Powell Slows Investors and observers await Federal Reserve Chair Jerome Powell’s speech tomorrow at the Kansas City Fed’s annual Jackson Hole Conference. Issues abound: inflation, the still-recovering labor market, tapering down Fed’s balance sheet, and the economic uncertainty from the Delta variant. Unspoken is whether …
Update 546 — You Can’t Bank on That:63 Mil. Short of Credit, Account Services All eyes today were on the Senate’s bipartisan negotiations and an initial vote to move to debate on the infrastructure bill. Moments ago, Republicans defeated the motion, 51-49, with 60 votes needed. With GOP negotiators signaling they will not have bill …
