The Banker Next Door

This episode provides a weekly update on U.S. banking industry news.

This episode looks at several articles detailing certain actions currently being undertaken by banks in the U.K. and Europe. Investors are expecting a surge in bad commercial real estate loans at European banks. U.K. banks expect to hike loan loss provisions in the coming years and German banks are seeking to curtail potential losses from U.S. commercial real estate.

This episode looks at several BID Daily Newsletters from PCBB around bank boards. The first newsletter considers what constitutes a good board of directors. The second newsletter considers age restrictions around board members. A link to both newsletters is below. Link - The Makings of a Successful Board of Directors (pcbb.com) Link - The Changing State of Board Age Restrictions (pcbb.com)

This episode looks at a recent article by Ashley Fahey from The Business Journals titled “Office-upfit costs continue to rise but have leveled off from inflation spikes.” The article examines the cost of office fit out expenses across the U.S. The article further explains that landlord tenant-improvement allowances are shifting. A link to the article is below. Link - Office-upfit costs rise amid amenities, flexible workspaces, technology - Philadelphia Business Journal (bizjournals.com)

This episode looks at a recent blog post by Ken Summar from Jack Henry titled “Do the 5 C’s of credit still matter?” The blog article explains the 5 C’s of credit, how technology may be affecting or influencing them, and proposes some additional C’s that should be considered. A link to the article is below. Link - Do the 5 C’s of Credit Still Matter? | FinTalk (jackhenry.com)

In this last episode of the series, we look at what has transpired from the end of the book in 2021 to today. I pose the question one more time, did the Fed save the day or permanently destroy our economy? What do you think?

In this episode we continue to review the book The Lords of Easy Money by Christopher Leonard. This book is about the Federal Reserve’s actions from 2008-2021. The author provides the reader a behind the scenes view on the discussions inside the Fed and ultimately, we see how their eventual actions played out in the larger economy. Did the Fed save the day or permanently destroy our economy? In this episode we review Part 3 (Chapters 13-16). This is a multi-part series. If you would prefer the “quick” review of the book, see episodes 8 (Review Part I) and 15 (Review Part II).

This episode looks at a recent article in Bank Director titled “How bank boards can support the implementation of AI” The article provides three actions a bank board can utilize to help guide the organization. In addition, the authors consider how a board might restructure itself to better handle AI oversight. A link to the article is below. Link - How Bank Boards Can Support the Implementation of AI | Bank Director

This episode looks at a recent article in Bank Director titled “Will community banks know when their credit quality cracks?” The article focuses on the implementation of the current expected credit loss model or CECL and how the handling of troubled debt restructuring, or TDRs, has changed under it. Will banks have the proper data moving forward to recognize current trends in their loan portfolios? A link to the article is below. Link - Will Community Banks Know When Their Credit Quality Cracks? | Bank Director

This episode looks at a recent article in Bank Director titled “Will your bank be covered when fraudsters strike?” The article focuses on what a bank’s board of directors should know about the ins-and-outs of their insurance bond. Basically, as all types of bank fraud continue to rise, banks need to make sure they are properly covered from potential losses. A link to the article is below. Link - Will Your Bank Be Covered When Fraudsters Strike? | Bank Director

This episode provides a weekly update on U.S. banking industry news.

This episode follows the evolving story of the cultural crisis at the Federal Deposit Insurance Corporation (FDIC) and its embattled Chairman Martin Gruenberg. An explosive report was released by an independent firm on the FDIC’s workplace culture, and it found sexual harassment, discrimination, and more misconduct including Mr. Gruenberg’s abhorrent attitude toward employees. Mr. Gruenberg was ready to step down but now is apparently staying, under political pressure, until a successor can be named.

This episode examines an explosive new report from the Federal Reserve Bank of New York titled “Tracing Bank Runs in Real Time.” The study found that 22 banks experienced deposit runs during the March 2023 banking crisis. The findings in this report suggest that modern payment systems are adding a complexity to bank runs that is not yet fully understood. A link to the report is below. Link - sr1104.pdf (newyorkfed.org)

In this episode we continue to review the book The Lords of Easy Money by Christopher Leonard. This book is about the Federal Reserve’s actions from 2008-2021. The author provides the reader a behind the scenes view on the discussions inside the Fed and ultimately, we see how their eventual actions played out in the larger economy. Did the Fed save the day or permanently destroy our economy? In this episode we review chapter 15. This is a multi-part series.

In this episode we continue to review the book The Lords of Easy Money by Christopher Leonard. This book is about the Federal Reserve’s actions from 2008-2021. The author provides the reader a behind the scenes view on the discussions inside the Fed and ultimately, we see how their eventual actions played out in the larger economy. Did the Fed save the day or permanently destroy our economy? In this episode we review the last chapter 16. This is a multi-part series.

This episode examines the amount of money banks put into their loan loss provisions during Q1 of 2024. Regulators want banks to put more money aside to cover potential loan losses. The question is, are banks putting themselves in jeopardy by not putting aside enough loan loss provisions to cover potential nonperforming loans? In addition, how is CECL performing?

This episode looks at the Independent Community Bankers Association (ICBA) list of best performing community banks for 2024. They list banks in three categories according to asset size. They review banks under $300 million, $300 million to $1 billion, and over $1 billion. The top 25 banks for each category are provided. Banks are judged based on their return on assets (ROA). A link to the article is provided below. Link: ICBA's Best-Performing Banks of 2024 (independentbanker.org)

This episode acknowledges the passing of two legends in the financial industry, Dr. Daniel Kahneman and Jim Simons. Dr. Kahneman was a psychologist who turned finance on its head by giving rise to “behavioral economics.” Jim Simons was an innovator in finance by pioneering the use the algorithms and artificial intelligence in various trading strategies. He left academia and became one of the most successful investors of all time. His trading firm gave rise to the term “Quants.” R.I.P. Dr. Kahneman and Mr. Simons, they changed the world of finance.

This episode reviews an article from Bank Director titled: “Do top executives at public banks get paid more than those at private banks?” The study specifically looked at compensation for four executive positions, which included CEO, CFO, CLO, and CCO. The study encompassed approximately 221 banks ranging in asset size from $1 billion to $5 billion. A link to the article is included below. Link: Do Top Executives at Public Banks Get Paid More Than Those at Private Banks? | Bank Director

This episode provides a weekly update on U.S. banking industry news.

In this episode we continue to review the book The Lords of Easy Money by Christopher Leonard. This book is about the Federal Reserve’s actions from 2008-2021. The author provides the reader a behind the scenes view on the discussions inside the Fed and ultimately, we see how their eventual actions played out in the larger economy. Did the Fed save the day or permanently destroy our economy? In this episode we start Part 3 and review chapter 13. This is a multi-part series.

In this episode we continue to review the book The Lords of Easy Money by Christopher Leonard. This book is about the Federal Reserve’s actions from 2008-2021. The author provides the reader a behind the scenes view on the discussions inside the Fed and ultimately, we see how their eventual actions played out in the larger economy. Did the Fed save the day or permanently destroy our economy? In this episode we review chapter 14. This is a multi-part series.

This episode provides a weekly update on U.S. banking industry news.

In this episode we continue to review the book The Lords of Easy Money by Christopher Leonard. This book is about the Federal Reserve’s actions from 2008-2021. The author provides the reader a behind the scenes view on the discussions inside the Fed and ultimately, we see how their eventual actions played out in the larger economy. Did the Fed save the day or permanently destroy our economy? In this episode we review chapter 12. This is a multi-part series.

In this episode we continue to review the book The Lords of Easy Money by Christopher Leonard. This book is about the Federal Reserve’s actions from 2008-2021. The author provides the reader a behind the scenes view on the discussions inside the Fed and ultimately, we see how their eventual actions played out in the larger economy. Did the Fed save the day or permanently destroy our economy? In this episode we review chapter 11. This is a multi-part series.