Breaking the system or fighting inflation
I’d retire if I was Powell
Its odd because its not like 2008 where liquidity was DRY, its that money is moving exponentially fast that banks are struggling to stay within stress tests. I know of a bank that is at 112% Loan-to-deposit ratio, and is no longer doing construction lending and is starting to sell off tranches of debt in syndication to lower their credit assets.
SVB essentially had an old school run on the bank
I don't expect it to be late 00's level problem, but I do expect the fed and regulators to 'tailor' the L-T-D ratio and other stress tests. During Jerome Powell's testimony this week it was a topic repeatedly, and how the act is changing to 'may tailor' to 'SHALL tailor'. Keep your eyes open