People are moving money from banks to money market funds due to high interest rates
This means banks will have less money to lend and they will be more careful with who they lend to
Credit availability is going to be a major concern for businesses pic.twitter.com/QaR7CLAtM4
— Game of Trades (@GameofTrades_) August 29, 2023
Financial stress on corporations is only going to increase from here
Corporate interest payments are set to rise as businesses will need to refinance in a high-interest-rate environment pic.twitter.com/U8Pwgjd9PQ
— Game of Trades (@GameofTrades_) August 29, 2023
The FDIC is proposing a forced capital (debt) increase for ALL banks because they know what's coming – total wipeout of the deposit insurance fund.t.co/8VfurNpBXq
And yet, lowest bank vol since Feb. '20. pic.twitter.com/5MxQWqtKN2
— Mac10 (@SuburbanDrone) August 29, 2023
Regulators to Force Regional Banks to Raise Debt Levels
U.S. regulators unveil plans for regional banks to issue debt and enhance living wills, aiming to protect against failures. Banks with over $100 billion in assets must hold long-term debt for absorbing losses during government seizures. These measures stem from the regional banking crisis earlier this year. New requirements are expected to increase funding costs, potentially impacting earnings and credit ratings. The proposal reflects a response to sudden collapses and emerging risks in the banking system.