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#20971550 at 2024-06-05 16:49:03 (UTC+1)
Q Research General #25720: DDay For Shills, Justice N Pain Comin DS Edition

Number Of 'Problem Banks' Climbs In 1st Quarter, New FDIC Report Finds

(This is an issue and will eventually hsve a trigger pulled on it at a time determined by (((them)))and the unrealized losses actually went down from its peak of Sept/Oct last year so those ringing 'alarm bells' at current amount are late to this partyas the lower Treasury yields go it takes pressure off these already insolvent for many years unrealized losses as that can keep ticking higher because the system allows itBottom line: consequences are few and far between in the financial world and they are applied randomly, if at all, so don't hold breath waiting for regulators to fix anything in a self-regulating arena)

It has been more than a year since the regional banking crisis exposed vulnerabilities in the financial system. A new Federal Deposit Insurance Corporation (FDIC) report discovered that the banking sector is still grappling with ballooning unrealized losses, a high number of "problem" banks, and various challenges that could worsen from high inflation and interest rates. The U.S. financial regulator released the findings of the "FDIC Quarterly Banking Profile First Quarter 2024" report on May 29. Officials confirmed that unrealized losses on available-for-sale and held-to-maturity securities rose by $39 billion to $517 billion. This, the report noted, represented the ninth consecutive quarter of "unusually high unrealized losses" since the Federal Reserve started raising interest rates in March 2022.
An increase in unrealized losses on residential mortgage-backed securities accounted for most of the January-March jump.
The FDIC report further revealed that the number of problem banks totaled 63 in the first quarter, up from 52 in the fourth quarter of 2023. They represented 1.4 percent of total U.S. banks, "which was within the normal range for non-crisis periods of one or two percent of all banks."
These banks appeared on the "Problem Bank List" because they contained a CAMELS (Capital adequacy, Assets, Management capability, Earnings, Liquidity, Sensitivity) composite rating of "4" or "5."
CAMELS is the FDIC's 1-5 rating system, which assesses a financial institution's performance, risk management practices, and degree of supervisory concern.
Despite the banking system's "resilience" in the first three months of 2024, the FDIC warned that the finance industry "still faces significant downside risks" from high inflation, geopolitical uncertainty, and volatility in market interest rates.
"These issues could cause credit quality, earnings, and liquidity challenges for the industry," the report stated. "In addition, deterioration in certain loan portfolios, particularly office properties and credit card loans, continues to warrant monitoring." S. officials, be it at the Federal Reserve or the Treasury Department, have repeatedly assured the public that the banking system is safe, sound, resilient, and highly liquid.
However, a wave of reports suggests that there could be more turbulence ahead, especially concerning commercial real estate (CRE). New data analysis from Florida Atlantic University discovered that 67 U.S. banks are at a high risk of failure due to their exposure to CRE.(No shit Sherlock)
The more than five dozen entities possess exposure to CRE greater than 300 percent of their total equity, the study found.
"This is a very serious development for our banking system as commercial real estate loans are repricing in a high interest-rate environment," said Rebel Cole, Ph.D., a Lynn Eminent Scholar Chaired Professor of Finance at Florida Atlantic University's College of Business.
"With commercial properties selling at serious discounts in the current market, banks eventually are going to be forced by regulators to write down those exposures."(wake me when THAT HABBENS)
Another study found that large U.S. banks might have more CRE exposure than financial regulators think because of credit lines and term loans given to real estate investment trusts (REITs).Researchers, including former Reserve Bank of India's deputy governor, Viral Acharya, purported that big banks' CRE lending exposure balloons by approximately 40 percent when indirect lending to REITs is factored in.
In February, the Mortgage Bankers Association (MBA) projected that 20 percent, or $929 billion, of the $4.7 trillion outstanding commercial mortgages held by investors and lenders will mature this year. This is a 28 percent increase from the $729 billion that matured in 2023.
https://www.zerohedge.com/markets/number-problem-banks-climbs-1st-quarter-new-fdic-report-finds

#4238309 at 2018-12-10 12:37:00 (UTC+1)
Q Research General #5399: The Sun Never Sets On Q Edition

Reserve Bank of India Governor Urjit Patel has resigned from his post.

"Speculation of Patel's exit had picked up after differences between the RBI and the government spilled out in the open. This first happened a couple of months ago when RBI Deputy Governor Viral Acharya delivered a hard hitting speech on the need to ensure the independence of the central bank. The speech was delivered with the backing of Patel, suggested the footnotes in Acharya's speech.

The provocation of that speech, BloombergQuint reported, were letter sent by the government seeking consultations under a rare provision of the RBI Act. The provisions, laid down under Section 7 of the Act, allow the government to give directions to the central banks considered necessary in public interest in consultations with the Governor."

Wonder if this guy was a Roth Puppet. Either way its an interesting Resignation to note.

https://www.bloombergquint.com/global-economics/urjit-patel-resigns-as-rbi-governor#gs.XZNrS5M

#3673124 at 2018-10-31 07:11:56 (UTC+1)
Q Research General #4663: News Unlocks Map Edition

India central bank governor may resign, reports say; rupee down

Reserve Bank of India Governor Urjit Patel may consider resigning from his post given a breakdown in relations with the government, TV channels reported on Wednesday, sparking a sell-off in the rupee and bonds. Indian television channels CNBC-TV18 and ET Now cited sources as saying that Patel could quit. The RBI and the finance ministry declined to comment.

The government has invoked never-before-used powers under the RBI Act that allow it to issue directions to the central bank governor on matters of public interest, the Economic Times newspaper reported. It said the government had sent letters to the RBI governor in recent weeks exercising powers under section 7 of the RBI Act on issues ranging from liquidity for non-bank finance companies, capital requirements for weak banks and lending to small- and medium-sized companies. Section 7 says that 'the Central Government may from time to time give such directions to the Bank as it may, after consultation with the Governor of the Bank, consider necessary in the public interest', a statute that has not been used in independent India, according to the Economic Times.

The 10-year benchmark bond yield rose to 7.87 percent from its previous close of 7.83 percent. The rupee fell to 73.99 to the dollar from 73.6750 on Tuesday, after touching 74.04, its lowest since October 15. "It is difficult to believe that the RBI governor will resign because it is unprecedented and would look quite irresponsible and (an) immature step," said a senior trader at a foreign bank. "But it is quite worrisome to see the government trying to continuously interfere into the RBI's operations."

IN THE OPEN
Tensions between the RBI and the government have spilled into public after Deputy Governor Viral Acharya said last week that undermining central bank independence could be "potentially catastrophic", indicating the authority is pushing back against government pressure to relax its policies and reduce its powers ahead of a general election due by May. Adding to the row, Finance Minister Arun Jaitley blamed the central bank for failing to stop a lending spree during 2008-2014 that left banks with $150 billion of bad debt. Patel and other regulators, including the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority and the Pension Fund Regulatory and Development Authority, met Jaitley and other top finance ministry officials at a meeting of the Financial Stability and Development Council on Tuesday to discuss the liquidity crunch. However, there was no sign of resignation by Patel at the meeting, officials said. Patel and his deputy governors are expected to meet top finance ministry officials on Friday.

https://www.reuters.com/article/us-india-cenbank-govt/india-central-bank-governor-may-resign-reports-say-rupee-down-idUSKCN1N5085?il=0