Here are some updates to the recent discussion on loan growth weakness relative to rising deposit balances at US commercial banks
Credit underwriters pride themselves in their ability to cut lending when they sense that economic fundamentals have changed for the worse. For example one often hears bankers talking about passing on deals in 2007 because of “not liking the fundamenta…
Cash holdings are an increasingly large component of US commercial banks’ balance sheets. This demonstrates the fact that thus far the Fed’s monetary expansion is not producing the “optimal” result. Banks are not growing the non-cash portion of their b…
The chart below shows a clear divergence in trends of the total loans and leases on US banks’ balance sheets and the broad money supply measure (M2). Loan balance growth is slowing, while the money supply keeps growing at a steady rate of around 7%.Sou…
A Bloomberg article this morning discussed the increasing balance sheets of Eurozone banks. It basically made is sound as though the ECB had been encouraging banks to take on more risk via the LTRO program. Bloomberg: – European banks pledged last y…
JPMorgan: Well Positioned To Steer Through Another StormSeeking AlphaThere is no doubt that JPMorgan Chase & Co. (JPM) faces significant near term risks, owing to the outcome of trading loss investigations and its GIIPS exposure, however, these ris…
The Fed will decide on Wednesday whether, and by how much, it will increase the rate at which it pumps cash through Primary Dealer trading…
Watching the slowing deposit drains in the European bank data, I have to wonder whether those who can get their money out have done so.…
…the problem that lies at the heart of the matter: a warped financial system, both in the U.S. and globally, that directs scarce capital to…
This report is an excerpt of the currently updated permanent Employment Charts page which includes the monthly jobs and average earnings data, as well as…
