After Credit Suisse’s demise, attention turns to Deutsche Bank
In recent weeks, euro-zone investors have experienced a sense of disbelief. Could banking turmoil really stay confined to America and Switzerland? On March 24th, as European bank stocks slumped, the disbelief faded. By the end of the day Christine Lagarde, president of the European Central Bank, had commented that Europe’s banks were safe and liquid […]
Lyn Alden on bank safety
In a recent Reason magazine interview, Lyn Alden makes a very good point: And Lyn Alden, founder of Lyn Alden Investment Strategies, says “banks are basically highly-leveraged bond funds with payment services attached, and we treat it as normal to keep our savings in them.” She argues that the Federal Reserve makes it nearly […]
One of the best ways to figure out what the Fed will do next is to look at regional bank stocks
Federal Reserve Board Chair Jerome Powell speaks at a news conference following a two-day meeting of the Federal Open Market Committee, Wednesday, Sept. 18, 2019, in Washington. Patrick Semansky | AP Markets have changed their mind — again — about what they think the Federal Reserve will do next week regarding interest rates. In a […]
Censoring Social Media to Prevent Bank Runs
They censored social media to prevent the public from learning the truth about COVID, vaccines, and accompanying mandates. They censored social media to prevent the public from learning about Hunter Biden’s laptop before his dad could be installed at the POTUS. They censored anyone who questioned the election or Biden’s crime family and deliberately leaked […]
America’s government steps in to protect depositors at Silicon Valley Bank
WHEN ONE bank collapses, the panicked question is often “who’s next?” Other financial institutions can end up exposed because of connections to the collapsed institution, because they employ similar business models or simply because investor sentiment sours. Depositors face losses if their funds are too large to be covered by deposit-insurance schemes. These were precisely […]
“Bank management must be investigated”
Throughout our history, the US has always had a dysfunctional banking system. There was never a golden age of American banking. That doesn’t mean the system was always in crisis, but the potential for crises was always there. (Even in the 1970s.) This isn’t Canada. There are many problems with the US banking system, but […]
Silicon Valley Bank Fails, With Deposits of Many Venture-Backed Companies Frozen. How Bad Will the Fallout Be?
Silicon Vally Bank, the 16th largest in the US, was shut down and put under the control of California Department of Financial Protection and Innovation on Friday. This failure is set to send ripples across smaller technology companies. Even though there is good reason to think that uninsured depositors will eventually be made whole or […]
Ajay Banga may be just what the fractious World Bank requires
On February 23rd, a week after David Malpass announced his resignation as president of the World Bank, and mere hours after the bank said the search for a successor would be months-long, “open, merit-based and transparent”, everyone knew who would win. Ajay Banga, a former boss of Mastercard, was nominated by the White House, making […]
The Bank of Japan’s new governor, Ueda Kazuo, marks a break with tradition
The memoirs of central-bank officials are rarely bestsellers. Ueda Kazuo’s book, “Fighting Zero Interest Rates”, about his time on the Bank of Japan’s policy board, certainly wasn’t when it was published in 2005. But it began to fly off the shelves after Mr Ueda became the surprise choice to run the boj when the term […]