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SEC Chair Gary Gensler

SEC Chair Gary Gensler: "We have bank and nonbank intermediaries using leverage, particularly in the prime brokerage relationships, and when stress enters the system, the result can be instability."

Hello, I hope everyone is enjoying a wonderful Tuesday. I was reviewing Gary Gensler's remarks before SIFMA and found his use of personal anecdotes mixed in with the facts he was delivering, come off as a louder and louder alarms for something ahead. Highlights: You might ask—why

Total household debt rose by 1.3% to reach $17.29 trillion in the third quarter of 2023

Total household debt rose by 1.3% to reach $17.29 trillion in the third quarter of 2023 led by Mortgage, Credit Card, and Student Loan Balances.

Household Debt and Credit Developments in 2023Q3: * Aggregate household debt balances increased by $228 billion in the third quarter of 2023, a 1.3% rise from 2023Q2. * Balances now stand at $17.29 trillion and have increased by $3.1 trillion since the end of 2019, just before the pandemic

Consumer Credit September

U.S. Revolving credit (credit cards) grew From August to September by $3.1 billion and increased at an annual rate of 8.6%.

Consumer credit increased at a seasonally adjusted annual rate of 0.4% during the third quarter. Revolving credit increased at an annual rate of 8.6%, while nonrevolving credit decreased at an annual rate of 2.4%. In September, consumer credit increased at an annual rate of 2.2 percent.

October 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices

October 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices: Banks Signal Tighter Standards & Weaker Demand for All Loan Types.

Wut Mean?: * Banks reported tighter lending standards and reduced demand for commercial and industrial loans to all firm sizes in Q3 2023. * There was a decline in demand and stricter standards for all commercial real estate loan categories. * Residential real estate loans saw increased lending restrictions, except for government mortgages,

New York Fed Researchers: The US Banking System is Still Vulnerable.

New York Fed Researchers: The US Banking System is Still Vulnerable.

Source: https://libertystreeteconomics.newyorkfed.org/2023/11/banking-system-vulnerability-2023-update/ The bank failures that occurred in March 2023 highlighted how unrealized losses on securities can make banks vulnerable to a sudden loss of funding. This risk, which materialized following the rapid rise in interest rates that began in early 2022, underscores the

"Currently, business debt is at historically high levels"

Fed Governor Cook: "asset valuations have generally risen notably above their historical levels." "Valuation pressures are especially concerning if they are associated with excessive borrowing."

Highlights: * "Average delinquency rates for CMBS have moved up recently, as office and retail loan performance has deteriorated. If delinquency rates generate selling pressure or increase notably further and result in forced sales of properties, then CRE prices could decline sharply." * "This year, asset valuations have generally

Is a freight recession becoming a banking bloodbath?

Failed Iowa bank (Citizens Bank) closed for bad trucking loans? Is a freight recession becoming a banking bloodbath?

As we discussed last week, Iowa Trust & Savings Bank, Emmetsburg, Iowa, Assumes All of the Deposits of Citizens Bank, Sac City, Iowa. * Citizens Bank in Sac City, Iowa, was closed by the Iowa Division of Banking. * The Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver. * FDIC entered