BLOG

In addition to Industrial Loan Companies (ILCs), Merchant Acquirer Limited Purpose Bank Charters (M-A-L-P-Bs), and Special Purpose Depository Institutions (SPDIs), National Trust Banks (NTBs), CEBA banks, and Payments National Banks (PNBs) have emerged as contenders.

Banks and bank holding companies issued $45 billion of subordinated debt in the short period from late 2020 through 2022 and a wave of sub debt refinancings is just beginning to reach the market. Are we ready?

Differences between bank and bank holding company (BHC) capital requirements provide BHCs greater flexibility to optimize their capital structure, creating incentives for the issuance of subordinated debt (sub debt). Sub debt issuance spiked from late 2020 through 2022 as companies sought to take advantage of pandemic-era near-zero interest rates and a flood of investors seeking meaningful yield.

In an article published in the Financial Brand , I made the argument that today’s generative and emerging agentic AI systems can help...

As Peter Renton and I discussed recently on the Fintech One on One podcast , the attitude in Washington has changed dramatically with the...

Periodically, Klaros nonbank clients ponder the potential impact on their enterprise valuation if they were to seek a bank charter....

Bank M&A, which hit a five-year low  in 2023, may finally be poised for a comeback. Atlantic Union Bancshares Corporation (NYSE: AUB) has...

Konrad Alt and Patrick Haggerty The Synapse bankruptcy is raising fresh concerns about the challenges of protecting depositors whose...

BY BRIAN GRAHAM The recent rescue of NYCB through the infusion of private capital comes almost exactly a year after the collapse of...

BY KEVIN STEIN AND BRIAN GRAHAM Industry results for the fourth quarter of 2023 were weak on average; the largest banks outperformed and...

BY MICHELE ALT When it comes to bank charters, there’s a sizable gulf between the OCC’s words and actions. In his February 21 speech at...

BY MICHELE ALT For years, scenes from “It’s a Wonderful Life” played on a loop in the FDIC’s public foyer, illustrating the romantic lens...

BY SIMON GILBERT In our meetings with clients, the three most common words are “a”, “the”, and “capital.” And it’s not surprising: some...

As the banking crisis continues to unfold, regulators who scrutinize banks, fintechs wondering if their banking partner is sound, and...

The Fed’s announcement regarding its Novel Activities Supervision Program makes clear that some state member banks that partner with...

BY KEVIN STEIN FDIC Chairman Marty Gruenberg’s recent speech at the Brookings Institution Center for Regulation and Markets had some...

BY TOD GORDON Moody’s recent ratings actions impacting 27 U.S. banks reflects a belated recognition of challenges facing the banking...

BY PATRICK HAGGERTY In the aftermath of recent bank failures and subsequent deposit flight from several regional banks, the way banks...

BY ANDREAS WESTGAARD AND CHRISTINA HUNT-FUHR The much-anticipated guidance on third-party relationships issued in June by the Fed, OCC,...

BY KEVIN STEIN There’s a lot to like about the Banc of California/PacWest merger announced yesterday. The transaction creates a combined...