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The pro-cyclicality of capital ratios and credit supply, a tale of two sizes

BankUnderground

First, analysing years up to 2009 can be used to measure the cyclical patterns in a less regulated environment, providing evidence on whether Basel III needed cyclical components. Second, expanding the analysis beyond 2009 provides evidence on whether Basel III addressed the pro-cyclicality of bank capital and lending.

Capital 78
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Bank Customers Lose Real Money

Jeff For Banks

You've been conservative, preferring the stability and security of bank deposits versus the gyrations of the market. Heck, maybe there'll be a reassessment and your real estate taxes will go down. Taxes go down? You worked hard, saved money, and reduced or eliminated debt. If this were 2006, things would be good. I made a funny.

Taxes 78
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Predicting the Next Banking Crisis Is a Fool’s Game. Not Learning From the Last One: Equally Foolish

Jeff For Banks

The old borrow short, lend long strategy. When the Taxpayer Relief Act of 1997 passed, the top capital gains tax rate was lowered, providing yet another incentive for equity speculators to pour money into the fledgling internet industry. And quite frankly, I did not know there were so many tranches to mortgage-backed securities.

FDIC 78
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A Decline in Personal Savings

TrustBank

The BEA calculates the personal saving rate by subtracting taxes from personal income to arrive at “disposable personal income” and then subtracts personal outlays. By the 1990’s, improvements in technology and further changes to securities regulations made it easier for corporate customers to access financial markets directly.

US 52
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My Fantasy Banking Team

Jeff For Banks

He joined COB's board in 2009 after its $310 million recapitalization which was needed from a disastrous slew of losses incurred starting in 2008 as a result of awful credit decisions, leading to a 21% NPA/Asset ratio peak in 2010. Security Bank in Midland, Texas lends to business, period. Yeah, Chan can own my team.

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Guest Post: 3rd Quarter Economic Update by Dorothy Jaworski

Jeff For Banks

An August report by Challenger, Gray, and Christmas showed that layoffs have declined dramatically, to a monthly average of 56,000 since June, 2009 and have been below 100,000 for fourteen consecutive months for the first time since 1999-2000. Job openings reported by the Labor Department in July were 3.04

Taxes 60
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Guest Post: Third Quarter Economic Update by Dorothy Jaworski

Jeff For Banks

Stocks have taken the brunt of investor frustration, selling off steeply in the third quarter for the worst quarterly loss since the height of the financial crisis in late 2008 and early 2009. trillion of Agencies’ bonds and Agency mortgage backed securities, QE2’s purchase of $600 billion of Treasuries, and now the “promise” and the “twist.”

DC 66