Amidst the unfolding year, concerns heighten over a looming financial crisis, with a potential bank failure on the horizon. The Office of the Comptroller of the Currency (OCC) proposes rule changes, including waiving margin requirements for major banks during periods of “high volatility,” sparking questions about the stability of the financial system.
The specter of last year’s challenges resurfaces, with shares of $NYCB plummeting and regional banks experiencing a downturn. Notably, the financial sector is gripped by worries of a derivatives implosion, adding complexity to an already precarious situation. The ongoing decline in commercial property values, coupled with the exposure of banks to approximately $560 billion in commercial real estate maturities by the end of 2025, intensifies concerns.
Japanese bank Aozora’s stock collapse, attributed to massive exposure to U.S. commercial real estate, further underscores the vulnerabilities in the financial landscape. Investors and experts are closely monitoring developments, wary of a potential banking crisis coupled with the looming threat of a derivatives implosion.
We might have our first bank failure of 2024 incoming.
And the OCC proposing a new rule to wave margin requirements for big banks in periods of “high volatility”
Wonder what they’re worried might cause high volatility 🤔
I’m sure their hundreds of trillions of dollars of… pic.twitter.com/H4tnpdhje0
— Ian Carroll (@Cancelcloco) February 2, 2024
Shares of Japanese bank Aozora are collapsing. Stock's on steepest 2-day drop since it became a public company.
Why? Bank reported massive exposure to US commercial real estate. pic.twitter.com/3WXmlFEny2
— David Ingles (@DavidInglesTV) February 2, 2024
Last year this time banks were utterly collapsing into the floor boards and western finance as we knew it was over. It was merely a matter of waiting before bearing the fruits of the coming apocalypse were to be digested. Since then the magicians at the Fed and… pic.twitter.com/HaLsOLRhJv
— The_Real_Fly (@The_Real_Fly) February 1, 2024