2018-06-14 10:35:00 Thu ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
The Federal Reserve's current interest rate hike may lead to the next economic recession as credit supply growth ebbs and flows through the business cycle. All of the 35 U.S. large banks such as JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo pass the annual stress test and thus would be able to lend even under the grimmest economic conditions. During the Trump administration, the U.S. Treasury and Federal Reserve may roll back at least some of the Dodd-Frank rules and regulations.
These extreme economic conditions include 10% unemployment, a sharp decline in general house prices, and a severe recession in Europe and elsewhere. Even under these dire conditions, the big banks hold sufficient capital buffers that would exceed the financial-sector equity claims back in the years just before the Global Financial Crisis. The Federal Reserve retains the final veto power to restrict any dividend hikes or share repurchases that the banks may pursue in order to return cash distributions to their shareholders.
It is important for financial intermediaries to substantially increase their core equity capital buffers in order to safeguard against extreme losses that might arise in rare times of financial stress such as the Global Financial Crisis from 2008 to 2009.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2023-10-07 10:24:00 Saturday ET
Thomas Philippon draws attention to greater antitrust scrutiny in light of the rise of market power and its economic ripple effects. Thomas Philippon (20
2025-02-02 11:28:00 Sunday ET
Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2025. Our proprietary alpha investment model outperforms the ma
2019-07-07 18:36:00 Sunday ET
The Chinese central bank has to circumvent offshore imports-driven inflation due to Renminbi currency misalignment. Even though China keeps substantial fore
2019-03-29 12:28:00 Friday ET
Federal Reserve Chair Jerome Powell answers CBS News 60 Minutes questions about the recent U.S. economic outlook and interest rate cycle. Powell views the c
2019-08-05 13:30:00 Monday ET
China continues to sell U.S. Treasury bonds amid Sino-U.S. trade truce uncertainty. In mid-2019, China reduces its U.S. Treasury bond positions by $20.5 bil
2018-10-23 12:36:00 Tuesday ET
Former Fed Chair Paul Volcker releases his memoir, talks about American public governance, and worries about plutocracy in America. Volcker suggests that pu