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.
2019-08-20 07:33:00 Tuesday ET
The recent British pound depreciation is a big Brexit barometer. Britain appoints former London mayor and Foreign Secretary Boris Johnson as the prime minis
2023-05-27 11:30:00 Saturday ET
Bank failure resolution and financial risk management: Silicon Valley Bank, Signature Bank, and First Republic Bank. What are the main root cau
2022-10-15 09:34:00 Saturday ET
Internal capital markets and financial constraints Duchin (JF 2010) empirically finds that multidivisional firms with robust internal capital markets ret
2019-07-13 07:17:00 Saturday ET
Japanese prime minister Shinzo Abe outlines the main economic priorities for the G20 summit in Osaka, Japan. First, Asian countries need to forge the key Re
2018-06-17 10:35:00 Sunday ET
In the past decades, capital market liberalization and globalization have combined to connect global financial markets to allow an ocean of money to flow th
2018-01-12 07:37:00 Friday ET
The Economist delves into the modern perils of tech titans such as Apple, Amazon, Facebook, and Google. These key tech titans often receive plaudits for mak