Mayra Rodriguez Valladares

The Office of the Comptroller is increasing its focus on climate change related risks at large banks. This includes bank examiners evaluating banks’ financial risk frameworks and their data and governance challenges.

The Federal Reserve Consumer Credit-G.19 report shows that U.S. consumer credit outstanding has reached historic levels; outstanding consumer credit is now at $4.7 trillion. This is a 90% rise from 2011.

Four of the United States’ largest globally systemically important banks (GSIBs) are reporting earnings this coming Friday, While net income could decline significantly, banks are well capitalized and liquid.

Thirty-one states do not have enough cash to pay their bills. To balance the budget as required by law in forty-nine states, elected officials have not included the true costs of the government in their budget calculations and have pushed costs onto future taxpayers.

With inflation at a 40-year high, investors are right in being passionate Fed watchers. I expect the Federal Reserve to raise rates by 50 to 75 basis points during its November meeting.

Americans received positive news yesterday that the rising rate of inflation is slowing down. Yet, the Federal Reserve will continue to raise rates in 2023.

Silicon Valley Bank has joined the cemetery of failed banks due to its self-inflicted wounds. No amount of finger pointing will absolve CEO Greg Becker, his management team, and SVB’s Board of Directors.

JPMorgan’s and Deutsche Bank’s Epstein Victims Settlements are unlikely to teach banks the importance of operational risk management. The fines are not high enough.

Regulators need to require all financial institutions to be sufficiently liquid and well capitalized to withstand rising corporate defaults.

Capital One and Discover should not rush into marriage; they need a long engagement period to get to know each other’s credit, operational, and liquidity risks.