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The long-awaited new proposed capital rule has finally arrived, spanning well over a thousand pages and addressing precisely the anticipated points. This development has been long in the making, and many might express a collective "finally" in response.
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Banks with $100 billion or more in assets will be required to issue “long-term debt sufficient to recapitalize the bank” in the event of a liquidity crisis event.
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Stock bulls’ wings will eventually get clipped by higher bond yields. It just isn’t apparent when, or at what level.
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The paradigm has shifted. Higher yields are back. Who knew that the subject of US Treasury bond yields could inspire such passion?
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The bank recently sold about $900 million in office loans, a spokeswomen confirmed...Sales of properties and related debt have been fairly muted so far in this cycle, outside of the sales of assets seized by three failed banks this spring, but activity in the distressed arena has been picking up in recent weeks, including as office property values in places like San Francisco's financial district have dropped dramatically.
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S&P's action will make borrowing more costly for a banking sector aiming to recover from a crisis earlier this year, when three regional lenders failed, prompting broader industry turmoil..."Some of the structural aspects for banks, regarding their balance sheet, remain risks to banks, as the Fed continues to try to anchor inflation with higher rates for longer," said David Wagner, portfolio manager at Aptus Capital Advisors.
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Periodic reviews of individual business lines are essential for banks looking to boost profits and improve investor returns. Here are some questions you should ask as you conduct such a review.
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The Fed could plot a middle course. It could return to its roots by allowing banks to address any needed increase in liquidity with improved ability to convert their loans to businesses and households into reliable contingent sources of funding by offering each bank a committed line of credit, a CLF, for a fee. Doing so would make banks more liquid, more willing to use their HQLA, encourage more banks to be ready to use the discount window when under stress, and promote appropriate incentives for managing their liquidity risk.
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