Crisis Du Jour
March 15, 2023 Good morning, Following yesterday’s market recovery from the near financial crisis in U.S. regional banks, we awake this morning to a new financial crisis unfolding in the European banking system. The culprit du jour: Credit Suisse (CS). The company’s shares dropped 25% upon disclosing that its top shareholder ruled out providing more […]
In Crisis Now
March 13, 2023 Good morning, The U.S. is in a liquidity crisis. So much has happened since the closing bell rang on Friday and the failure of Silicon Valley Bank (SVP). The most obvious thing to note is the quick policy response of U.S. authorities over the weekend, which protects even uninsured depositors and offers […]
Some Advisors Tell Clients To Limit Bank Deposits To $250K Per Bank
March 15, 2023 – Principal and Managing Director, Mallon FitzPatrick was featured in Financial Advisor Magazine coverage of what are advisors telling clients to do about their cash accounts with the recent bank failures. “Think of liquidity in terms of number months to fund lifestyle and add an amount for short-term goals,” said FitzPatrick. “A […]
Reflections on Banking
By Jeanette Garretty, Chief Economist March 15, 2023 – My career in finance is almost exactly coincident with the deregulation of the banking industry. The Deregulation and Monetary Control Act of 1980 allowed depository institutions a freer hand in setting depository account interest rates, partly in response to the innovation of the enormously popular CMA […]
Robertson Stephens’ Garretty Reacts to US CPI
March 15, 2023 – Chief Economist and Managing Director, Jeanette Garretty appeared on Bloomberg to discuss the latest US CPI data and banking sector turmoil. “There’s always systemic risk when it comes to banking. It is embedded in everything that we do. But unlike 2008, we’ve got experience that these Fed officials have a great […]