San Antonio Express-News’ Post

If it ain't #brokered, don't fix it? With almost 175 industry comment letters submitted, #brokereddeposits remain a key focus of both regulators and banking industry stakeholders. While #uninsureddeposits have had the recent limelight, other deposit characteristics that influence stability and tenure impact bank funding and risk management practices.🌿🏦 #bankingindustry #regulatoryreporting #deposits

Ahh Texas bankers....(although most of the money's from NYC) Note that this is not nearly enough capital to give the deeply insolvent holdco Industry Bancshares, Inc. and its subsidiary banks a reasonable level of capital (if they were a public company) so presumably there is a plan for shrinkage plus some more capital to come. Or maybe not.... One of the great weirdnesses of our bank capital system is that a GAAP insolvent bank with $800 mm of AOCI losses is totally fine from a Tier 1 equity capital standpoint if it made the right election back in the day because those losses....don't count!?! Plus, most of their assets have very low risk weights. So they have plenty of regulatory capital thank you very much, even if they will still be operating at a quarter or less of the capital that the markets ask community banks to have. It will be interesting to learn how much the Office of the Comptroller of the Currency and Federal Reserve Bank of Dallas were involved in the details. Or maybe the bank just wants to continue playing chicken with the regulators until interest rates bail them out. #banks

Have you heard the phrase "concentration risk" before? It's the term for having too much money placed with a single bank. We break down why funds may be concentrated in one bank, and why that can lead to unexpected consequences for depositors. #ConcentrationRisk #CashManagementStrategy #DepositManagement #TreasuryManagement #Ampersand

We just had our first bank failure of 2025 and it's not the only one that could go under "In some respects, the risks are greater now, Gruenberg said, given that today’s largest banks are bigger, more complex and more deeply intertwined than ever before...." "The troublesome factors cited by Gruenberg included interest-rate risks for banks, liquidity risks, too much leverage, inadequate capital, too-rapid growth for some banks, a reliance on high amounts of uninsured deposits and new financial products that weren’t well understood. Many of the same factors remain prevalent today, including financial institutions that aren’t banks and thus fall outside of their regulatory oversight, with much less transparency and supervision...." https://lnkd.in/e-MMhp87

While this warning is directed at depositories vs. IMBs, it begs the question: What's your due diligence process around counter-party risk? #banks #fintech #imbs #tech #technology #americanbanker #techrisks

Reading this article - is both concerning, and also reaffirming, in the sense that it articulates very well, the transition the Bank has experienced in the last 10 years and that many of us have been observing, and also details the impact that transition has had on its people, culture and performance. Readers looking for a silver lining, or a positive outlook for the Bank won’t find that here however, as it seems that while there are monumental efforts underway to address the regulatory challenges the Bank is facing that are an existential threat to its future growth and prosperity (as one would expect under a Risk Management Pedigree CEO), there is no evidence of an equivalent effort being expended to address the other equally important deficiencies called out by the investor community and current/past TD senior executives - an overbearing risk & bureacratic operational environment, and a significantly diminished culture, that in many ways, was why TD was awarded a “cultural P/E premium”, by investors, employees and customers alike. That premium was hard won over many years of deliberate changes, up and down the organization, and won’t be re-established, if current senior leadership (inclusive of management and the BOD), aren’t even able to acknowledge its been lost, has value, and that tangible action is required to regain it. All that being said, as a long time TD employee, investor, and TD green cheerleader, I want to remain hopeful & optimistic.

🔔 Banking Crisis 2.0 - Bank Bust Alert! - Republic First Bancorp in Philadelphia was seized by the FDIC, marking the first bank failure of the year. 🏦 New Ownership Incoming! - Fulton Bank is set to acquire the majority of Republic First's assets and deposits. 💸 Big Money, Big Problems! - Republic Bank held approximately $6 billion in assets and $4 billion in deposits. 📉 Costly Collapse! - The failure is estimated to cost the FDIC's insurance fund a whopping $667 million. 🔄 Branches Rebranding! - All 32 branches of Republic Bank will reopen under the Fulton Bank banner across New Jersey, Pennsylvania, and New York. 🚨 Banking Sector Under Pressure! - Higher interest rates and large deposit outflows are putting additional strains on U.S. banks. 💔 Crisis Continues! - With the termination of the Federal Reserve's BTFP bailout fund, concerns grow about the stability of other banks.

BaaS Partnerships: Are banks ready for the risk? As third-party partners multiply, the burden of compliance and reconciliation falls on sponsor banks. Learn how new regulations aim to protect customers' funds. #BankRecordkeeping #CCGCatalyst #BankingResearch Managing New Recordkeeping Risks: Tyler Brown https://lnkd.in/giUiueyZ

FDIC considering lawsuit against officers and directors of Silicon Valley Bank for breach of duty in managing the bank's investment portfolio. The resolution lays out the case for what went wrong with the bank's balance sheet management decisions (in English): Flood of hot VC cash + Investment in huge unhedged portfolio of 10-year Treasuries = Outsize bank profits in 2021-2022 The strategy worked until it didn't. When the Fed started raising interest rates, the market caught wind of losses in the Treasury portfolio, and the hot money hit the exit. $23B loss to FDIC to make depositors whole.

The Fed continues to press the largest banks on the cornerstone programs of financial stability - capital stress testing, liquidity stress testing and balance sheet management, and recovery and resolution. Banks will continue to struggle with recovery and resolution planning for the simple reason that plans developed are only so credible while core operations and technology continue to lag expectations. If you’re a banker, ask yourself - are your systems and business processes truly separable such that you could effectively sell materials businesses or legal entities in the event of deterioration in performance? Would your management team be able to navigate the people/process/technology implications for such a material change? I suspect for most banks the answer is no. Until that dynamic changes, expect more releases like the one included in this post. The ecosystem of bankers, technologists and consultants that serve this industry all need to do better. The expectations are fair. We continue to lag those expectations.