Bailey: “We are doing something important… helping a man get his own roof and walls.”
Potter: “You're worth more dead than alive.”
Banking Reform in the US
BANKING REFORM introduced granular LTV tables for traditional lending while treating $1.2T in NDFI (mortgage intermediaries, private equity funds, consumer & business credit) as one?
Governor Cook at 3/19/26 Fed Banking Reform meeting (56:31 to 57:06): "Finally, I am reserving judgement as to whether the down calibrations that are contributing to the material decline in capital requirements are actually making capital requirements more risk sensitive. Granular requirements are not necessarily equivalent to risk-sensitive requirements. Especially for exposures where our visibility may be quite limited. Better data and sightlines into banks exposures to certain non-bank intermediaries for example would give me greater comfort in assessing the proposed changes and the treatment of those exposures."
Ask and you shall receive Lisa.
Excluding non-depository financial institutions (NDFI), when compared to large banks, small banks have lent more in loans and leases in bank credit over the last 10 years by ~$1 trillion. Large banks have lent ~$849 billion more over that same time period to NDFIs.
What's the over/under on better underwriting for small banks? Does continued NDFI funding allow extend and pretend to continue?
Barr dissented to proposed changes.
21st Century ROAD to Housing Act. click on items for more detail, explore different views. illustrative, not exhaustive.
think section 205 has some teeth? Cities that build more housing get a bigger slice of federal community development dollars; cities that don't get docked 10%. That's a stick right?
initial read on §901 is that it explicitly exempts build-to-rent. Investors can still buy newly constructed SF homes to rent. Catch: 7-year disposal requirement — though REITs may be exempt from that if disposal triggers prohibited transaction tax.
Housing + Banking: Senate amendment bans Fed Central Bank Digital Currency (sunsets 2030). House version discussed community banks.
map is but one framework for looking at impact of Senate bill. still has to go back to House. None of this means any entity is a good steward of capital and/or has circumstances favorable to success. Do your homework. I've stopped homework here given potential for everything to change. Would like to confirm ownerships.
shout out Ms. C. for talking about compound interest first day of pre-calc. made frame-by-frame, before AI.
introducing WAK-A-MOLE. PCE SIMULATOR.
don't let the red deceive you as it actually shows you how stable housing, utilities, financial services and insurance can be.
SLIDE ANYTHING YOU WANT - see where PCE lands.
NOTE: prior month values are subject to revision with each new release and may differ from previously published numbers. Hence, WAK-A-MOLE.