Markets Insider (June 27)
“The banking crisis that unfolded earlier this year isn’t over, and banks could be hit with losses akin to what was seen in 2008 if the Federal Reserve doesn’t get inflation under control.” In its annual report, the Bank for International Settlements called attention to the “lasting ramifications of 2023’s bank failures, starting with the collapse of Silicon Valley Bank in early March.”
Tags: 2008, 2023, Annual report, Banking crisis, BIS, Collapse, Failures, Fed, Inflation, Losses, Ramifications, SVB, Unfolded
New York Times (March 21)
“The failures of Silicon Valley Bank and three other lenders over the past 11 days” have “put the Fed in a difficult position as it prepares to deliver on Wednesday one of the most consequential decisions on interest rates of the Jay Powell era.” In addition to tightening rates to curb inflation while somehow avoiding a recession, the “banking crisis hands the central bank a third crucial challenge: how to steer the banking sector out of the predicament and restore confidence in the sector.”
Tags: Banking crisis, Consequential, Decisions, Failures, Fed, Inflation, Interest rates, Powell, Predicament, Recession, SVB
Reuters (March 11)
“Nearly three years with no U.S. bank failures just came to an unseemly end.” The FDIC took Silicon Valley Bank into receivership “after a slide in deposits and a hasty capital raising failed to restore confidence. By acting quickly, regulators have stopped one crisis, but may have laid the groundwork for more.”
Tags: Bank, Capital raising, Confidence, Deposits, Failures, FDIC, Hasty, Receivership, Regulators, Silicon Valley Bank, Slide, U.S., Unseemly
Wall Street Journal (January 22)
“The rash of failures showed how interconnected the crypto lenders were, allowing market shocks to ripple through one lender to the next.” Though they essentially “have the same business model as banks,” crypto lenders lack the regulatory protections and failsafe measures, which ensure “small depositors are kept whole in the case of a bank failure.”
Tags: Banks, Business model, Crypto lenders, Depositors, Failsafe, Failures, Interconnected, Market shocks, Rash, Regulatory protections, Ripple
Bloomberg (August 19)
“The US mortgage industry is seeing its first lenders go out of business after a sudden spike in lending rates, and the wave of failures that’s coming could be the worst since the housing bubble burst about 15 years ago.” Though a “systemic meltdown” is not expected, market watchers still anticipate “a string of bankruptcies broad enough to trigger a spike in layoffs in an industry that employs hundreds of thousands of workers, and potentially an increase in some lending rates.”
Tags: Bankruptcies, Failures, Housing bubble, Industry, Layoffs, Lenders, Market, Mortgage, Rates, Spike, Systemic meltdown, U.S.
Salt Lake Tribune (April 14)
The Trump administration has “no plan” to address the immigration crisis. “This president has done nothing but rant about his own failures both privately and publicly…. It is not hyperbole to say that the nation, through its top executive, has cast aside law and order in favor of despotism. The problem is that this president is not even a good despot.”
The Week (May 3)
“The takeaway from Trump’s first 100 days in office isn’t a list of accomplishments or failures but rather a nugget of hard-won knowledge about the president himself: He is so comprehensively ignorant of policy and history, so thoroughly lacking in a core of settled beliefs or convictions, that the Oval Office might as well be unoccupied.”
Wall Street Journal (June 6)
Mario Draghi is again being pressed “to rescue Europe’s politicians from their own economic failures. If only the politicians would give him pro-growth economic reform in return for all of his monetary exertions.” Under Draghi’s leadership, the EU Central Bank taken additional measures to stimulate the economy, including charging banks interest on funds deposited with the central bank, in the hope that bankers will be more inclined to lend their funds to businesses and individuals.
Tags: Banks, Draghi, Economy, EU Central Bank, Europe, Failures, Growth, Interest, Lending, Monetary stimulus, Politicians, Reform
The Economist (May 17)
The planned merger of Publicis and Omnicom would have created the world’s largest advertising firm. Last week it was called off. “Anyone connected with the two firms should probably count himself lucky that they uncoupled before rings were exchanged. (Indeed, shares in both firms edged up after the cancellation.) Corporate marriages often go wrong, but mergers of equals…account for a disproportionate share of the most notorious failures.”
Tags: Advertising, Cancellation, Equals, Failures, Lucky, Merger, Omnicom, Planned, Publicis, Shares, Uncoupled