Top of the Agenda Beware the Kraken The business model of Payward Inc.’s Kraken Financial, part of a U.S.-based cryptocurrency exchange that Wyoming bank authorities just approved for a special-purpose… Continue Reading
October 24
October 21
Beware the Kraken
On Sept. 16, 2020, the Wyoming State Banking Board approved the application by U.S.-based cryptocurrency exchange Payward Inc. for a special purpose depository institution (SPDI) charter.[1] Payward conducts its cryptocurrency… Continue Reading
October 20
Not Only European Banks are Facing Pressure on Share Prices . . .
As noted in Oct. 19’s Wall Street Journal article, European bank stocks declined 41 percent this year compared with a 13-percent fall in the broader index. European banks are hoping… Continue Reading
October 19
Challenges in Stress Testing and Climate Change
In this research note, we present an overview of important methodological challenges associated with climate change stress testing for banks. While significant and important progress has been made in developing… Continue Reading
October 17
BPInsights: October 17, 2020
Top of the Agenda BPI And Coalition of Financial Trades Submit Letter to Congress Opposing OCC Payments Charter BPI and a coalition of financial trades, including ABA, CBA, ICBA, CUNA,… Continue Reading
October 15
A Replacement for LIBOR as a Loan Benchmark Would Ideally Be Sensitive to Liquidity Risk as Well as Credit Risk
With LIBOR scheduled to go off-line at the end of 2021, attention increasingly focuses on what will replace it. Regulators have encouraged use of the Secured Overnight Financing Rate or… Continue Reading
October 10
BPInsights: October 10, 2020
Top of the Agenda Bloomberg Analysis of DOJ Investigations Determines FinTechs Issued 75% of all Fraudulent PPP Loans A Bloomberg analysis of over 100 cases currently being investigated by the Department… Continue Reading
October 8
Blast Email on Monetary Policy: Meandering Bazooka Addition
On July 17, I distributed the note below to those who have signed up for my free occasional emails on monetary policy. We decided it was worth redistributing as a… Continue Reading
October 7
Necessary Dimensions of a Holistic Review of the Meltdown of U.S. Bond Markets in March
In March U.S. bond markets became highly dysfunctional. The liquidity of the markets for U.S. Treasury securities, usually the most liquid in the world, deteriorated significantly.[1] Liquidity in U.S. corporate… Continue Reading
October 3
October 02, 2020
Top of the Agenda Using Loan-level Data to Assess the PPP’s Effectiveness BPI published an analysis of loan-level data from the Paycheck Protection Program (PPP), released to the public by the U.S…. Continue Reading