risk management – Random Thoughts…

State of US Banks – Dec 2023

December 16, 2023 amits99

OCC released their semi-annual report, Semiannual Risk Perspective for Fall 2023 last week on the state of the banking industry in the US and notes that state of banking industry remains sound but challenged while the economic headwinds are receding due to strong consumer spending, strength in labor market and resilient resilient corporate profits. However the report highlights challenges that inflation remains above long term goal (2%); job growth is slowing and warns that consumer savings have been depleted due to strong spending and end of pandemic assistance. This is a summary of some interesting nuggets from the report;

Falling of the Crypto Banks – phase 2

March 12, 2023 amits99

The collapsing dominoes of crypto have reached the crypto banks with Silvergate and Silcon Valley Bank (SVB) closing last week. There are three common factors behind the 2 bank failures this week. Both banks failed to implement proven risk management practices present in the banking industry of managing concentration risk, interest rate risk, asset-liability mismatch and were woefully inadequately prepared for a bank run and reacted to the fast pace of rate increases and deposit withdrawls.

State of Banks in the US – OCC Annual Report

January 22, 2023 amits99

Office of Comptroller of currency (OCC) released the 2022 annual report providing state of the US banking system. In their report, the OCC concludes that the US banking industry remains well capitalized with ample liquidity and is well positioned to face the continuing geopolitical & economic uncertainty and market volatility which was also reflected in the views of the Bank CEO’s in the earnings calls last week.

Falling of the crypto banks

September 24, 2022 amits99

The dominoes continue to collapse in the crypto world with the turn of the crypto banks and lenders now. Over the summer, Crypto banks Celsius, Vauld and broker dealer Voyager have all suspended withdrawals and are in various stages of bankruptcy. These are the latest dominoes to fall in the crypto world as the price of bitcoin has dropped by 50% from last year and is down 69% from its all time high.

Grey Swans and Gray Rhinos in land of Risk Management

October 17, 2021 amits99

What are Grey Swans and Gray Rhino’s in the world of risk management? Gray Swans are used to describe events that are possible but not considered likely to happen and that have extremely significant impact. Gray Rhino, this is the Elephant/Gorilla in the room and is an event that is highly probable, has high impact but crucially is a neglected threat.

The Archegos FIASCO AT CSFB

August 28, 2021 amits99

An inside view on what was going on inside Credit Suisse that led the bank to have the biggest losses of $5.5 billion amongst major banks from the collapse of Archegos

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