Banking

Fed Backstops the Banks

Mar 31, 2023 2 min read

The Fed has the banks' backsides covered. The Fed can't insure deposits, but it can guarantee that the banks have access to plenty of liquidity to meet deposit outflows without having to sell securities from their bond portfolios at a loss as happened to Silicon Valley Bank (SVB), forcing it into receivership on March 10. The banks are required to put up bonds as collateral for their

Ed Yardeni

April Is Coming

Mar 30, 2023 2 min read paid

April is the second best month of the year for the stock market. From 1928 through 2022, the S&P 500 was up 1.4% on average during the month, second only to July's 1.7% average gain (chart). The S&P 500 is up 1.5% since the end of February through today (chart). That's impressive given that Silicon Valley Bank imploded on

Ed Yardeni

A Wave of Bank Mergers Ahead

Mar 27, 2023 2 min read paid

The FDIC started to do its job immediately after it seized Silicon Valley Bank (SVB). The regulator transferred all SVB deposits and assets into a new “bridge bank” to protect depositors of the failed lender. On Monday morning, March 27, the FDIC announced that First Citizens BancShares will buy SVB’s deposits and loans, just over two weeks after the biggest US banking collapse since the global financial crisis. The

Ed Yardeni

The Economic Week Ahead: March 27-31

Mar 25, 2023 2 min read

More important than any economic indicators this week will be whether there is more bad news indicating that the banking crisis is far from over. No news would be good news. That's what we're rooting for. We are expecting some bad news from the March regional business surveys conducted by the Federal Reserve Banks of Dallas (Mon) and Richmond (Wed), confirming the recessionary readings of the

Ed Yardeni

Banking on Inflation Going Downhill

Mar 15, 2023 2 min read

All of a sudden, we are hearing more chatter about deflation. Yes, that's right: deflation. The story line is that the regional banks will respond to the SVB debacle by lending less to lots of middle market businesses, especially if depositors move their funds to the money center banks or to the money markets. The result will be a credit crunch and a hard landing forcing companies to

Ed Yardeni

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Fed Backstops the Banks

April Is Coming

A Wave of Bank Mergers Ahead

The Economic Week Ahead: March 27-31

Banking on Inflation Going Downhill