Husband,Dad,Dog-walker,troll-survivor. Football, Finance & NJ jokes. Retweets are my dog’s views. Healthcare reform-quack. I speak troll to power!
Mar 18, 2023 • 6 tweets • 2 min read
Random thoughts/questions on all the post #SVB analysis: 1) Should larger banks that have lower “deposit beta” be allowed to take on more deposits, overruling current 10% national de novo deposit share ceiling? In turn, big banks can make commitments to invest in smaller ones 1/n2) Banks to ⬇️ investments in HTM long term securities or mandate accounting standard changes that reflect M2M changes in HTM portfolio in B/sheet or PnL. There is too much juggling today btw HTM and AFS buckets, neither of which directly affects the PnL. Hedging is not effective
Jul 16, 2019 • 15 tweets • 3 min read
A tale of 2 banks or 2 Country-blocs (US & EU). US banks have managed Regulatory Capital well, reinvested in technology for scale in volatile trading, reined in bonuses and benefit from an un-fractured Retail market with +ve interest rates...1/2...
On the other hand, EU banks have overstated synergy of I-Banking with Corporate Banking, without steady revenues from either, frittered away capital & drove margins to 1-digit RoE levels. All this while facing -ve interest rates & fractured, price-protected Retail markets...2/3
