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risk weighted assets

The Math Thickens

By |2016-10-26T16:34:03-04:00October 26th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It has been my contention for some long while that one of the biggest parts of this “rising dollar”, that is, again, nothing more than a euphemism for the various ways in which there is a “dollar” shortage, is balance sheet math. The problem in as simple terms as perhaps possible is that positions were taken, balance sheets constructed, and [...]

More Of The Same From Frankfurt

By |2016-10-14T17:17:49-04:00October 14th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It is quite interesting that two pieces of likely interconnected news hit today about everyone’s favorite German bank. First, Reuters reported rumors that C-suite officials from Deutsche Bank alerted their HR to perhaps expect double the job cuts from what was previously announced. Last October, the bank claimed that it would need to shed about 9,000 employees. Apparently, that might [...]

Suspicions About Bank Math: A Systemic Story Told Through Deutsche

By |2016-10-11T18:18:15-04:00October 11th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

As perhaps another in a very long line of indications as to what is unholy and wrong about today in banking and finance, over the weekend it was reported in the Financial Times that Deutsche Bank had received an improper accommodation on its “stress test.” In what can only be described as a clear example of cheating, DB’s capital position [...]

Zeroing In On ‘Something’; Another Bank Anecdote

By |2016-10-06T17:16:13-04:00October 6th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

If we objectively analyze what is taking place with global banks, it is that they are facing new constraints due to volatility and conditions across different capacities that are much different than modeled expectations. This was supposed to be the Hollywood ending but instead there is only “global turmoil.” This difference isn’t new; it has been ongoing at various speeds [...]

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