The bank crisis is over, but regional and community banks continue to struggle with poor profits and the tolls of higher rates. In the fourth quarter of 2023, profits at regional banks dropped sharply, and those losses were not exclusive to the smaller banks. Net income was down from a…
It appears that PCE inflation is encouraging, with the core PCE price index at +2.9% year-over-year in December, the lowest since March 2021 and aiming for the Fed’s 2% target. But, after being stuck at 3.5% over the past six months annualized, core services accelerated to 4.0% in December, while…
The Importance of IDC’s Ranks As of the third quarter 2023, IDC Financial Publishing (IDCFP) ranked 435 institutions below investment grade (see Table I). In addition to the significant rise in the number of banks ranked less than 125, the majority of the categories of CAMEL have increased in 2023Q3. The…
A year ago, the U.S. faced a frightening reality when there was a run on banks. Fearing collapse, depositors raced to pull their money out, resulting in the shut down of Silicon Valley Bank. Going forward, this can be prevented if the weaknesses are addressed in the system, including more regulatory…
The following article was posted on Bloomberg Opinion on January 4, 2024. It points out the massive gaps in regulations and lack of transparency with banks’ supervisory issues, among other industry failings, that led to the SVB failure and will continue to plague the banking industry without regulatory action. This…
