Consultant Ninja

MARCH 31, 2009

Heres my understanding of the current TARP/TARPII/PPIP/etc plans: The major "sick" banks wont lend to businesses, because their balance sheets are tied up with bad assets that they cant sell. The government will buy those assets, freeing up the major banks to loan again to businesses. Banks fail all the time, right?

Balance Sheet 100

Balance Sheet Marketing Banking Consulting 100

Tom Spencer

NOVEMBER 9, 2019

The Business of Banking. Banks are intermediaries for capital and hold the risk when supply and demand is not perfectly balanced. Commercial Banking. A bank, on the other hand, can diversify this credit risk and reduce the average cost of vetting each loan by lending to many borrowers. Investment Banking.

Banking 12

Banking Industry Balance Sheet Retail 12

MishTalk

SEPTEMBER 8, 2014

Banks are in the business of making loans. Exploring Lending Club Bloomberg columnist Mat Levine explores the issue in Lending Club Can Be a Better Bank Than the Banks. There are a lot of ways in which [Lending Club] is not a bank, but the big one is that basically all (95.6 Is that the right model?

Banking 74

Banking Balance Sheet Financial Operations 74

MishTalk

AUGUST 8, 2013

In Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. What about foreign central bank assets, especially China and Japan? I posted an interesting chart by reader Tim Wallace of the stock market vs. Fed asset holding (repeated below for convenience).

Balance Sheet 74

Balance Sheet Banking Marketing Report 74

MishTalk

DECEMBER 18, 2013

The Financial Times notes a Big rise in subordinated debt issuance by EU banks Banks have taken advantage of yield-chasing investors to issue $90.7bn of subordinated debt for the year to date, a 41 per cent increase compared to the same period in 2012. It relates to bail-in procedures in the alleged European "banking union".

Banking 69

Banking Balance Sheet Finance Government 69

Tom Spencer

NOVEMBER 25, 2011

Thirdly, European banks are currently focused on building their balance sheets not on lending. European banks have until the end of June 2012 to get their core capital ratios up to 9%. Weak financial markets increase the risk that one or more European banks will fail. How could Dexia fail?

Balance Sheet 89

Balance Sheet Banking Financial Case Interview 89

MishTalk

SEPTEMBER 30, 2014

On September 4, ECB President pulled out a financial bazooka including a pledge to build up the ECB''s balance sheet by another €1 trillion. Mario Draghi is to push the European Central Bank to buy bundles of Greek and Cypriot bank loans with “junk” ratings, in a move that is set to exacerbate tensions between Germany and the bank.

Balance Sheet 75

Balance Sheet Real Estate Banking Policies 75

MishTalk

AUGUST 22, 2014

As noted in German Two-Year Bonds Have Negative Yield, Demand High; Euro Bond Bubble Guaranteed to Burst , " Banks lend (provided they are not capital impaired), when credit-worthy borrowers want credit and banks perceive risks worth lending." The New York Times DealBook explains Europe Fears Banks Lack Cash Cushion to Cover Bad Loans.

Banking 66

Banking Balance Sheet Metrics Government 66

Harvard Business

SEPTEMBER 25, 2017

It has been 10 years since the global financial crisis, and the fall-out continues in the industry that was at its epicenter: banking. There has been a truly dramatic retrenchment from foreign markets, making banking a rare case of an industry becoming less, rather than more, global. For some banks, the answer is simply: Yes.

Banking 71

Banking Balance Sheet McKinsey Finance 71

MishTalk

DECEMBER 17, 2013

On December 12 the Financial Times reported EU reaches landmark deal on failed banks with a "common rule book for handling failed banks". The next day, a friend commented the banking union agreement proved me wrong. I replied "wait for the details". Some senior officials are warning the proposals are too cumbersome.

Banking 72

Banking Finance Balance Sheet Financial 72

MishTalk

SEPTEMBER 4, 2014

Banks create money when they lend. I’d start a charity whereby every newly appointed central bank board member is sent a free copy of Rothbard’s Mystery of Banking except I am beginning to doubt their ability to read. All they have done is give banks the incentive to park money on sovereign bonds with diminishing yield.

Balance Sheet 76

Balance Sheet Real Estate Banking Operations 76

Harvard Business

MARCH 14, 2017

Travel loyalty programs tend to be complex and multicurrency, making them different from retailers, which typically run simple discount programs, or from banks, which offer cash back or a single currency that can be spent easily across a range of merchants. Early adopters could benefit considerably.

Travel 134

Travel Balance Sheet Hotels Airlines 134

Tom Spencer

MAY 2, 2020

Since the start of February this year, the Fed has expanded its balance sheet by more than $2.4 To put that in context, the Fed was created in 1913, and its total balance sheet assets only reached $2.4 trillion in assets, but only 2 months to achieve the same amount of balance sheet expansion this year.

Balance Sheet 88

Balance Sheet Government System Finance 88

MishTalk

OCTOBER 26, 2014

In an effort to fool the public into believing the latest round of bank stress tests were actually designed to find stress, the ECB found 25 scapegoats, none of which were German banks. Reuters reports ECB Fails 25 Banks in Health Check but Problems Largely Solved. The 130 banks account for 81.6

Balance Sheet 75

Balance Sheet Banking Exercises Report 75

MishTalk

MARCH 19, 2014

The Fed’s tapering merely slows the growth of its balance sheet. The rarely admitted truth, however, is that there is no need for central banks’ balance sheets to shrink. They could stay permanently larger; and, for some countries, permanently bigger central-bank balance sheets will help reduce public-debt burdens.

Balance Sheet 67

Balance Sheet Banking Government Policies 67

MishTalk

NOVEMBER 16, 2014

Switzerland Gold Initiative Halt all Swiss National Bank (SNB) gold sales Repatriate Swiss gold held in foreign vaults (UK and Canada) Establishes minimum 20% level of SNB Assets in gold Of course, central bankers everywhere are horrified by the idea they should have to do anything, especially hold sound assets.

Balance Sheet 69

Balance Sheet Banking Analysis Productivity 69

MishTalk

OCTOBER 6, 2015

Central Bank Policy Rates Current Rates Bank of England: 0.50% Bank of Japan: 0.10% Fed: 0.00%-0.25% (currently 0.14%) ECB: 0.05% Central Bank Balance Sheets Three Questions Other than asset bubbles, what do we have to show for this? Reader Gary emailed a link to JP Morgan's Quarterly Market Guide.

Balance Sheet 28

Balance Sheet Banking Policies Marketing 28

MishTalk

NOVEMBER 6, 2014

Having already cut interest rates to record lows and saying they can go no lower, Draghi is now focused on boosting the ECB’s balance sheet. The ECB has issued long-term loans to banks and started buying covered bonds in the hope of flooding the economy with enough liquidity to ease credit constraints. Headwinds explain why.

Balance Sheet 69

Balance Sheet Banking Government Policies 69

MishTalk

APRIL 7, 2014

In lengthy negotiations last month the EU reached a deal on how to handle failed banks. Please consider EU Deal on Bank Failures Risks Unravelling A landmark EU agreement on a common rulebook for handling bank failures is in danger of unravelling over the fine print restricting when a state can intervene to rescue a struggling bank.

Banking 69

Banking Balance Sheet Finance Government 69

MishTalk

JUNE 30, 2016

Deutsche Bank shares have collapsed to lows deep under crisis lows and collapse of Lehman in the Great Financial Crisis. … Continue reading →

Balance Sheet 44

Balance Sheet Banking Financial 44

MishTalk

NOVEMBER 20, 2013

Banks; Global Financial System is Bankrupt. Addendum: Société Générale disputes the numbers and new calculations using the banks'' numbers are 28:1 or perhaps 23:1 not 50:1 as noted on Forex Crunch. Banks do not plunge out of the blue on rumors. French Banking Primer. trillion balance sheet is leveraged nearly 49-to-1.

Balance Sheet 78

Balance Sheet Banking Financial Finance 78

MishTalk

DECEMBER 14, 2015

Merits of Not Shrinking the Balloon When the Fed first launched QE, they stated they had the "tools" necessary to shrink their ballooning balance sheet. Once the Federal Reserve lifts interest rates from near zero, likely this week, the focus will turn to the other legacy of the crisis-era policies: the Fed's swollen balance sheet.

Balance Sheet 28

Balance Sheet Banking Tools Policies 28

Harvard Business

FEBRUARY 26, 2018

This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement. Let’s first look at the balance sheet. Therefore, the balance sheets of physical and digital companies present entirely different pictures.

Financial 71

Financial Balance Sheet Company Report 71

Tom Spencer

NOVEMBER 27, 2011

IN OCTOBER 2011, private banks accepted a 50% writedown on Greek debt. Over the last few decades, countless risky financial products were sold to investors using harmless sounding terms like “credit default swap”, “mortgage backed security”, “special purpose vehicle” and “off-balance sheet financing”. in Economics.

Balance Sheet 89

Balance Sheet Consulting Case Interview Financial 89

MishTalk

AUGUST 6, 2013

Balanced Budget Ammendment Sign the Balanced Budget Petition. Reader Question: Does the Fed Balance Sheet Properly Reflect QE Announcements? The feds balance sheet doesnt reflect it. So if QE is $85B a month, where is it and why doesnt it show up in the Feds balance sheet.". Feds Balance Sheet.

Balance Sheet 64

Balance Sheet Analysis Trends Real Estate 64

Successful Independent Consulting

MARCH 31, 2020

You’ll need to provide evidence of your qualifying status, such as 1099-MISC tax forms from your clients, and accounting statements like an income statement and/or balance sheet. The PPP loans will also be available through most major banks in the coming weeks. x average monthly income).

Cash Flow 248

Cash Flow Consulting Small Business Insurance 248

MishTalk

DECEMBER 26, 2014

Next year will be a very important year for China because possible strains in the banking system and the intensity with which the reformers present their case will give us a better sense both of how much debt capacity the country retains and of how well positioned Xi Jinping and his allies are to implement the needed reforms.

Banking 71

Banking System Benchmarking Finance 71

MishTalk

DECEMBER 23, 2013

The New York Times reports China Rates Approach Crisis Levels Despite Central Bank Measures. The central bank, the People’s Bank of China, said late Friday that it had provided more than 300 billion renminbi, or about $50 billion, in short-term funds to selected banks over a three-day period that week.

Balance Sheet 76

Balance Sheet Banking Benchmarking Financial 76

MishTalk

SEPTEMBER 23, 2013

I received several emails regarding my post on Risk-Free Banking and Fractional Reserve Lending that I would like to share. When I began investing, one looked at the real property on balance sheets. Indeed, as it stands banks are always bailed out at taxpayer expense, the very epitome of "moral hazard". Hello Mish.

Banking 62

Banking Balance Sheet Policies Travel 62

MishTalk

DECEMBER 4, 2013

Bove, one of the most widely-respected banking analysts in the world, is certain that will have devastating consequences for housing and the rest of the American economy. Bove says the banks he spoke with won''t be able to provide 30-year mortgages in large quantities without Fannie Mae and Freddie Mac in the markets. "I''ve

Government 73

Government Balance Sheet Real Estate Banking 73

MishTalk

MAY 20, 2014

Yesterday, former fed chair Ben Bernanke said " No Need for Fed to Shrink Balance Sheet ". The Federal Reserve does not need to shrink its $4 trillion-plus balance sheet by even "a dime" for it to normalize monetary policy when the time comes, former Fed Chair Ben Bernanke said on Monday.

Balance Sheet 59

Balance Sheet Strategy Strategy Strategy& 59

MishTalk

NOVEMBER 27, 2013

On October 23, ECB president Mario Draghi announced new bank stress tests. Draghize : "Banks do need to fail to prove the credibility of the exercise". Mish : We are carefully scrutinizing several non-critical banks, looking for a couple of scapegoats, hoping to fool the public regarding the credibility of the exercise.

Balance Sheet 64

Balance Sheet Exercises Banking Government 64

MishTalk

JANUARY 16, 2014

While the ECB confirmed that it will require lenders to have a capital ratio of 8 percent, what qualifies as capital will change over the course of the three-part assessment, the central bank said in an e-mailed statement. Given that requirement, banks could be forced to provision capital against potential risks from the exposure.

Balance Sheet 73

Balance Sheet Banking Exercises Financial 73

MishTalk

FEBRUARY 6, 2014

In addition to holding its benchmark rate at 0.25%, the ECB also left the rate it pays on bank deposits unchanged at zero. The ECB balance sheet has plummeted to 23pc of eurozone GDP from a peak of 32pc in July 2012. Banks refusal to lend is not passive tightening. The answer is no." Eurozone inflation slowed to 0.7%

Balance Sheet 71

Balance Sheet Banking Retail Policies 71

MishTalk

SEPTEMBER 18, 2014

The European Central Bank’s first offer of cheap four-year loans has fallen short of expectations, dealing a blow to president Mario Draghi’s hope of sustaining the eurozone’s ailing economy by expanding the central bank’s balance sheet. Why TLTRO Won''t Spur Lending Banks may eventually take the money.

Balance Sheet 65

Balance Sheet Banking Operations Policies 65

MishTalk

DECEMBER 9, 2014

ECB president Mario Draghi set out to stimulate bank lending by purchasing covered bonds. Covered bond supply has reached its lowest level in nearly two decades as the European Central Bank has been accused of crowding out investors from the market by pushing up prices and depressing yields. The buyer of only resort is the ECB.

Marketing 67

Marketing Balance Sheet Banking Policies 67

MishTalk

AUGUST 22, 2013

Then in an effort to bail out the banks (typically overweight bubble assets) the Fed steps on the gas again. Here is the reality: Those with first access to money, the banks and already wealthy are the only ones who benefit from inflation. Inflation Benefit 3 (?): "Balance sheet recession" might go away!

Balance Sheet 72

Balance Sheet Real Estate Banking Government 72