Ram Ahluwalia, CFA’s Post

TD Bank's shares dropped 1.5% amid reports of a branch facilitating fentanyl-related money laundering. The bank allocated $450 million for potential fines. Estimates suggest fines could exceed $2 billion. Investors are wary of financial repercussions. Tap on the link to know more: https://lnkd.in/dPRRca5u #urbananews #newsupdate #TDBankScandal #MoneyLaunderingRisk #FinancialRepercussions

Current environmental conditions have been tricky pretty much across the board over the past few years. Various sectors have run into their own problems, financial sector among them. Back in March 2023 Silicon Valley, First Republic and Signature bank were among the biggest banks to fail. New York community bank announced their earnings last week causing the stock to plummet now nearly 60%. So I want to give some context, New York community bank brought the assets of Signature bank back in March; when their earnings came out it showed: huge loan losses, cut dividends and their capital is down. As banks are regulated to a higher degree in relation to their asset value. So when NYCB acquired Signature Bank it put them over the next bracket of regulations. This in turn set of alarms on how the bank is being managed. Finally, what can this mean for the rest of the financial sector? If one bank fails, what this can lead to is other banks to follow. This is called a contagion, it's like if one person has a cold others will have a cold. However, from what I have read if NYCB was to fail this is an extremely specific issue with this individual bank so it's unlikely that it wall cause other issues across the sector. #banking #invesment #finance #money #wealthgrowth

FCRA Lawsuits and CFPB Complaints Start Year Up Significantly, Former Treasury Secretary Mnuchin Leads $1 Billion Attempt to Rescue NYCB/Flagstar and Names Former OCC Leader Joseph Otting as CEO, CFPB Bans Excessive Credit Card Late Fees, and more top headlines from this week. Catch up on all of the top news from this week: https://hubs.la/Q02nB32D0 READER NOTE: If you find this of value, please like, comment, or repost it to your network. #banks #consumerlending #compliance #creditrisk #creditreporting #cfpb #fintech #news #industryupdates #TheScanner

TD Bank faces regulatory scrutiny over alleged involvement in a US money-laundering scheme. Analysts predict significant penalties and constrained growth in the US market. Shares plummeted following revelations of the investigation. Tap on the link to know more: https://lnkd.in/dmJdXH3b #urbananews #newsupdate #Canada #TDBank #RegulatoryScrutiny #MoneyLaundering #USMarket #Penalties #SharePriceDrop

For the first time since synthetic risk transfers (SRTs) debuted after the GFC, the press and market are finally beginning to embrace them as “mainstream.”  I think that is great news. What was once a niche market in Europe is now growing across the US, from GSIBs to regional banks. US Bank, Huntington, Santander, and other household names are quickly moving in. For bank managers, this should be something to celebrate. At a time of economic uncertainty and growing regulatory burdens, private investors are expressing they are ready and willing to work with banks to help them de-risk. There is lots to do in this space, thrilled to see the market finally embracing it in earnest. https://lnkd.in/dfj4FtJd

TD Bank faces regulatory scrutiny over alleged involvement in a US money-laundering scheme. Analysts predict significant penalties and constrained growth in the US market. Shares plummeted following revelations of the investigation. Tap on the link to know more: https://lnkd.in/d2ytyn-K #urbananews #newsupdate #Canada #TDBank #RegulatoryScrutiny #MoneyLaundering #USMarket #Penalties #SharePriceDrop

New York Community Bank's stock plunged today after it boosted reserves and cut its dividend in the fourth quarter to meet the tougher demands of running with the big banks - the need for additional capital to meet regulatory requirements. Latest from Phil Scipio and me for IFR. NYCB said the dividend cut and the sharp increase in loan loss provisions were part of the lender's preparations for its new life as a Category 4 bank. NYCB gained that status after it bought a large chunk of Signature Bank's assets last year after that bank collapsed at the start of the regional banking crisis of 2023. The acquisition pushed assets under management at NYCB above the US$100bn thereshold, making it subject to new capital and liquidity requirements proposed last year. Even before NYCB's results, analysts said banks with assets of just above US$100bn would need to aggressively grow to justify the additional compliance and capital costs that came with a Category 4 desgination. Otherwise, it might make more sense to pare down the bank and avoid that threshold altogether. https://lnkd.in/es6TgxUm

Synthetic risk transfers were billed as the credit market’s solution to new, and potentially onerous, US bank capital rules designed to help ensure that banks have strong enough buffers against financial distress. But now regulators are potentially walking back the Basel III Endgame rules. Interesting story by Esteban Duarte, Carmen Arroyo Nieto, and Tasos Vossos about what this means for the lenders who were excited to do these deals. https://lnkd.in/eWpK3PVa #privatecredit #structuredfinance #banking

𝘽𝙖𝙧𝙘𝙡𝙖𝙮𝙨 𝙎𝙚𝙩𝙩𝙡𝙚𝙨 𝙬𝙞𝙩𝙝 𝘾𝙁𝙏𝘾 𝙛𝙤𝙧 $4 𝙈𝙞𝙡𝙡𝙞𝙤𝙣 𝙊𝙫𝙚𝙧 𝙎𝙬𝙖𝙥 𝙍𝙚𝙥𝙤𝙧𝙩𝙞𝙣𝙜 𝙑𝙞𝙤𝙡𝙖𝙩𝙞𝙤𝙣𝙨 Barclays Bank PLC has settled civil charges with the U.S. Commodity Futures Trading Commission, agreeing to pay $4 million for failing to accurately and timely report over 5 million swap transactions between 2018 and 2023. The settlement addresses violations of U.S. law and CFTC regulations introduced following the 2008 financial crisis. Despite the missteps, Barclays was credited with substantial cooperation with regulators, including self-reporting the discrepancies. The bank has committed to cease any future violations in swap reporting. #Finance #Regulation #Barclays #CFTC #Compliance https://lnkd.in/gh4rqynz