Industry Reports

OCC Trading & Derivatives Report: Systemic Conditions Remain

09/30/2015

The OCC’s quarterly report on bank trading & derivative activities showed continued falling trading volumes/notionals trends.  Still, four U.S. GSIB banks dominate the derivatives trading market (90%+), and we wonder if they are becoming a bigger portion of a still sizeable market.  CCAR results & other strategies show that there are still excess company-specific risks and that they present systemic risk to the banking system. 


Conference Chat: SYF and ALLY Moving Up & Out

09/22/2015

Like millennials finally moving out (kicked out?), SYF and ALLY are both in the process of splitting off from their parents.  Their status as market leaders in their respective businesses and their shared focus on growing their capital base, especially deposit funding, should (literally) pay dividends soon.


As Rates Zoom, Will Banks Face Glee or Gloom?

09/14/2015

We believe that the big banks with more rate challenges regarding their asset/liability management profiles include Bank of America and Citigroup. JPMorgan and Wells Fargo should have less rate challenges than the other two big banks as they have been more conservative in how they structure their rate sensitivities or ran lower investment securities durations. Also, they exhibit much stronger loan origination capability given their market reach and better developed consumer/commercial brands.  On the regional bank side, we are more concerned with KeyCorp and SunTrust. Both banks have noted the impact of their swaps books on their ALM strategy and seem to think that they can smoothly re-rack this posture when rates rise.


U.S. GSIBs: Greek Debt Olympics, Who Finishes Last?

07/07/2015

The Greeks have not had this much summer attention since the 2004 Summer Olympics hosted in Athens.  And instead of awe inspiring athletic prowess, the world is wondering if this is another awful debt episode ending with international counterparties contagion at the finish line.  We say not for the U.S. GSIBs and look at the other domino effect Eurozone & Russia exposures.


Canadian Bank View: Knighted As the Best Banks, Will Armor Tarnish?

06/22/2015

Canadian banks have been knighted by many market observers as the “Best Banks in the World!” Over the years, other banks have been similarly lauded such as the Scandinavians, U.S. banks, and some Europeans with cataclysmic ramifications within only a few short years later. Do Canadian banks harbor the seeds of future descent? Read on.


CCAR 2015 Part 2: False Victory?

03/11/2015

The CCAR qualitative pass rate improved to 100%, but BAC has to do some remedial work and resubmit revised capital plan by September 30, 2015.  JPM, GS and MS all had to resubmit their capital plans to pass.


CCAR 2015: Banks Pass, Fed Fails!

03/09/2015

Most observers of CCAR 2015 are applauding the stressed capital results with a white-flag pass.  We think the results show that the Fed’s test is too academic and not very meaningful in light of what banks really need to do, which is generate solid core operating profits.  On many fronts the banks are weak, and the Fed’s CCAR methodologies simply fail to make a difference.


U.S. GSIBs 4Q14 Review: Still An Uphill Core Business Battle

02/17/2015

A tough quarter for most of the big trading & lending GSIBs with lower net income reported by four of the six. Morgan Stanley reported positive net income only because of a tax benefit offsetting operating losses.  Three of the six GSIBs reviewed missed consensus estimates even after adjustments. 


Born on the Bayou - U.S. Bank Energy Exposures 2015

01/29/2015

Banks are never fully out-of-the-woods, or the Bayou swamps of Louisiana for that matter, when it comes to various types of risk including credit, interest rates, markets, capital, liquidity and operational. It seems that they skip from risk-sitch to risk-sitch every 18 – 24 months without fail, where yesterday’s great lending or trading opportunity sours and becomes tomorrow’s great investor and risk manager’s nightmare. And the U.S. banks are familiar with the &l


Why a Fortress-Balance Sheet Matters to the C-Suite

01/16/2015

Bank executives challenged by complexity and unintended consequences related to the Dodd Frank Act and Basel III implementation (Legal, Organizational, Valuation, Infrastructure)


Page: 1 2 3 4 5 6 7 8