Steven Kelly, Associate Director of Research at the Yale Program on Financial Stability, returns to Forward Guidance to update Jack on the Federal Reserve’s forthcoming plans to increase capital requirements for U.S. banks. Filmed on July 11, 2023.
____
Follow Steven Kelly on Twitter https://twitter.com/StevenKelly49
Follow Jack Farley on Twitter https://twitter.com/JackFarley96
Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance
Follow Blockworks on Twitter https://twitter.com/Blockworks_
Kelly’s latest “Without Warning” Substack: https://www.withoutwarningresearch.com/p/the-macro-story-of-svb-isnt-just
____
Use code GUIDANCE20 to get 20% off Permissionless 2023 in Austin:
https://blockworks.co/event/permissionless-2023Research, news, data, governance and models – now, all in one place. As a listener of Forward Guidance, you can use code GUIDANCE10 for a 10% discount when signing up to Blockworks Research https://www.blockworksresearch.com/
____
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:
https://rb.gy/5weeywMarket commentary, charts, degen trade ideas, governance updates, token performance, can’t-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter: https://rb.gy/feusos
____
Timecodes:
(00:00) Introduction
(02:45) Bank Capital Ratios, Explained
(18:52) Busting Myths About Banks' Interest Rate Hedging
(38:15) Accounting For Unrealized Losses
(46:56) How Much Money Is Leaving the Banking System?
(54:16) U.S. Banking System Is "Stable But More Fragile"
(01:02:47) The Basel III Endgame
(01:05:54) Interest Rates And Financial Stability
____
Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.