Now an exercise in extinguishing multiple fires

Fed's Hope of A Soft Landing Dashed

BankerAdvisor's Ongoing Series of How Fintech is Making Lives Better

Remitting it Forward

Private Equity Carried Interest Provision Lives On

Bank stocks are often perceived to be a harbinger of broader economic trends so BankerAdvisor wheeled around some of the big banks’ reported second quarter earnings to spot broad movements

Tea Leaves and Emerging Economic Trends

Run on digital assets leads platforms to freeze user accounts, including withdrawals. Bankruptcy looms. 

The Big Chill in Crypto

Banks everywhere are ratcheting up their credit card marketing activities greatly increasing marketing expenses. Credit-card issuers are staying aggressive and shrugging off potential liquidity issues from consumers, despite rising interest rates and potential recession.  

Big Banks Keep Pushing Credit Cards to Consumers

Futility Index

The Impact of Two Consumer Classes and the Fed Funds Rate Outlook 

A Tale of Two Consumers

Saudia Arabia No Longer Exclusively Selling Oil in US Dollars

Implications of the Expiration of the Petrodollar Agreement

Rising interest rates should ostensibly benefit all banks taking deposits. But, while large consumer institutions benefit, higher-risk banks have been hammered down

Lending Profits Differ Greatly by Bank

Firm to combine asset, wealth and consumer banking into one unit

Goldman Sachs Reorganization 

Germany, Europe’s New ‘Problem Child,’ Has a Series of Self-Inflicted Issues

Is German Deindustrialization Underway?

A new monster has emerged to compete with inflation: broad banking instability, particularly for smaller and regional banks

Pick Your Poison: More Banks in Peril or Prolonged Inflation

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SWIFT said it is uniquely positioned to interlink the fragmented digital asset landscape with its forthcoming digital currency trials in 2025. Banks in North America, Europe and Asia are preparing to participate in trials involving digital assets by the Society for Worldwide Interbank Financial Telecommunication (SWIFT).  SWIFT announced on Oct. 3 that it will begin digital asset trials on its network in 2025. The trials will involve experiments with transactions that include multiple digital currencies and assets.

Banks to join SWIFT digital asset trials in 2025

ARK Invest founder and CEO Cathie Wood expects that a “changing of the guard” at the United States Securities and Exchange Commission may turbocharge the economy and bring about an influx of innovation and investment in emerging technologies.  “Deregulation, defanging the SEC, FTC, and others, government spending cuts, tax cuts, and a focus on technologically enabled innovation are likely to turbocharge the US economy,” she said, in sharing a video posted by ARK Invest on X on Nov. 11. “We have more clarity now in terms of the investment landscape after the election,” 

‘Defanging the SEC’ may turbocharge US economy: Cathie Wood

Credit ratings agency Moody's unexpectedly downgraded France's rating on Friday, adding pressure on the country's new prime minister to corral divided lawmakers into backing his efforts to rein in the strained public finances. The downgrade, which came outside of Moody's regular review schedule for France, brings its rating to "Aa3" from "Aa2" with a stable outlook for future moves and puts it in line with those from rival agencies Standard & Poor's and Fitch. It comes hours after President Emmanuel Macron named on Friday veteran centrist politician and early ally Francois Bayrou as his fourth prime minister this year.


Moody's hands France surprise downgrade over deteriorating finances

Federal Reserve Governor Michelle Bowman said Thursday she supported the recent interest rate cuts but said the December reduction should be the “final step” in the easing process.
Even with the full percentage points of cuts from September through December, there are still “upside risks to inflation,” she added. Other Fed speakers this week provided views contrary to that of Bowman, who is generally regarded as one of the committee’s more hawkish members.

Fed Governor Bowman says December interest rate cut should be the last

In recent days, multiple central bank policymakers not only have noted the uncertainty surrounding tariffs, they also have highlighted the potential impact on inflation. Chicago Fed President Austan Goolsbee cited a number of supply chain threats that include “large tariffs and the potential for an escalating trade war.” Economists generally see tariffs as having one-time impacts on prices. However, in this case Trump is casting a wide enough net that it could generate the kind of underlying inflation the Fed fears. Federal Reserve officials take great pains not to comment on fiscal policy, but the looming threat from tariffs is forcing their hand.

Fed officials are raising concerns about the impact Trump’s tariffs could have on inflation

Calastone, the largest global funds network, has today released groundbreaking research, revealing that tokenisation – the process of transforming asset ownership into digital tokens on a blockchain – holds the potential to unlock over $135 billion[2] in cost savings for the asset management industry. The research also identifies that fund processing costs are projected to rise by 32% over the next three years, putting firms under increasing pressure to modernise.

Calastone Research Reveals Tokenisation Could Save $135 billion for Asset Management Industry

Treasury yields moved higher Tuesday following a poor auction on the five-year note and as investors await fresh data releases on inflation. Yields perked up after a $70 billion Treasury Department auction of 5-year notes was met with weak demand. The bid-to-cover ratio, a widely followed demand gauge, came in at 2.3, below a 10-auction average of 2.45. Investors are hungry for more data on the economic and inflationary picture after the minutes from the Federal Reserve’s latest meeting, released last week, showed uncertainty among policymakers about when to ease policy. On Friday, they will parse the April personal income and expenditures report, which includes a measurement of price movements across a range of consumer expenses.

10-year Treasury yield rises above 4.5% following weak auction

China's central bank said on Thursday it would start accepting applications from financial institutions to join a newly created funding scheme, initially worth 500 billion yuan ($70.62 billion), to aid the capital market. The People's Bank of China (PBOC) said eligible securities firms, fund companies and insurers can apply to join the swap scheme, which gives them easier access to funding to buy stocks.

China kicks off 500 bln yuan swap facility to aid stock market

The Reserve Bank of India has cut its key interest rate for the first time in nearly five years, as cooling inflation has offered room to stimulate the slowing economy. The central bank forecast real GDP growth for next fiscal year at 6.7%, and inflation rate at 4.2%. The Monetary Policy Committee decided to trim the repo rate by 25 basis points to 6.25%, RBI Governor Sanjay Malhotra said in a livestreamed address.

India’s central bank cuts rates for the first time in nearly five years, forecasts faster growth next year

An inflation gauge in Japan that is closely watched by the Bank of Japan (BOJ) came in at a seven-month high in November, which could prompt the central bank to raise rates early next year. The so-called “core-core” inflation rate, which strips out prices of both fresh food and energy and is tracked by the BOJ, rose to 2.4% from 2.3%, its highest level since April. The core inflation rate — which strips out prices of fresh food — came in at 2.7%, up from the 2.3% seen in October and beating the 2.6% forecast by economists polled by Reuters.

An inflation gauge tracked by the Bank of Japan just jumped to a seven-month high

China kept its main benchmark lending rates unchanged on Friday, as Beijing faces the challenge of bolstering economic growth while backstopping a weakening yuan. The People’s Bank of China said it would steady the one-year loan prime rate at 3.1%, with the five-year LPR at 3.6%. The 1-year LPR affects corporate and most household loans, while the 5-year LPR serves as a reference for mortgage rates. The move was expected according to a Reuters poll of 27 economists. The rate decision came on the back of a widely-expected 25-basis-points rate cut by the U.S. Federal Reserve on Wednesday. The Fed also indicated it will only reduce interest rates twice in 2025, fewer than the four cuts in its September meeting’s projection.

China keeps benchmark lending rates steady as Fed signals fewer cuts ahead

Goldman Sachs has unveiled several new actions as it looks to strengthen its services for corporate and investor clients and grow its business in private credit, private equity, and other asset classes. These actions include the creation of a Capital Solutions group and the expansion of its alternatives investment team in its Asset and Wealth Management division. 
The Capital Solutions group will bring together and expand Goldman Sachs’ activities related to financing, origination, structuring, and risk management, which are currently part of its Global Banking and Markets division. 

Goldman Sachs launches Capital Solutions group to grow private credit and equity business

The turmoil in global markets this past week is causing private credit funds to question whether they should reconsider the ever-tighter loan margins they’re demanding. Industry stalwarts such as Ares Management Corp. and Blackstone Inc. have been charging less for private credit for most of this year, according to data compiled by Bloomberg News, as they try to snatch business away from the syndicated loan market. But that strategy may change after recession fears have risen amid a slew of worrying economic reports. 

Private Credit Is Eyeing Bigger Margins on Loans: Credit Weekly

Companies owned by private equity firms are landing in default more frequently than other speculative-grade borrowers, according to a report from Moody’s Ratings. Private equity-backed companies defaulted at a rate of 17% between January 2022 and August of this year, twice the rate of non-private equity-backed companies, Moody’s said in the report released Thursday. Among the 12 largest private equity sponsors — as ranked by Moody’s — the default rate was slightly lower at around 14%.  Platinum Equity had the highest number and share of defaults, out of Moody’s ranking of the 12 largest sponsors, followed by Apollo Global Management and Clearlake Capital Group. 

PE-Backed Firms Suffering Higher Default Rates, Moody’s Says

Guernsey stock exchange now provides a facility for trading shares in privately held companies. A stock exchange based in the Channel Islands is trying to capitalise on a global drought in initial public offerings with the launch of a facility for buying and selling shares in privately held companies. But this reinvention of its role looks likely to attract stiff competition from larger rivals. The International Stock Exchange (TISE) — which has, for years, specialised in providing a listing venue for corporate debt — last year launched a unit allowing private companies to run auctions in their own shares, without the need for a broker.


TISE finds best place to capitalise on private assets

Russia’s central bank on Friday unexpectedly left its key interest rates unchanged at 21%, citing improved monetary tightness that had created the conditions to tame sky-high inflation.
Markets had widely expected the central bank to hike interest rates by another 200 basis on Friday, after taking such a step in October. Russia’s consumer price index hit 8.9% in November on an annual basis, up from 8.5% in October.

Russian central bank surprises markets by holding key rate at 21%

The Bank of Korea held its benchmark policy rate at 3% in a surprise move so as to assess changes in domestic and external economic conditions. The BOK’s decision surprised economists polled by Reuters, which were expecting a 25-basis-points cut. The BOK also said that GDP growth would “highly likely” miss its 2024 and 2025 forecasts.

Bank of Korea leaves rates unchanged in a surprise move, warns GDP growth ‘highly likely’ to miss forecasts

In the summer of 2022, a young marketing executive in London, eager to revamp her wardrobe, clicked “Pay in 4” at checkout. The process was seamless—no credit check, no hassle, and most importantly, no immediate cash outflow. Fast forward six months, she found herself juggling payments across three different BNPL providers, struggling to keep up as late fees and missed payment penalties mounted. Her story is not unique. BNPL has redefined consumer credit, offering frictionless financing at the point of sale. But beneath its convenience lies a pressing concern—are we enabling financial empowerment, or are we simply repackaging debt in a more palatable way?

The BNPL Boom: The Good, The Bad, and The Regulatory Challenge

Online trading platform Robinhood has agreed to pay $29.75 million to settle several probes from the Financial Industry Regulatory Authority (FINRA) related to the company’s supervision and compliance practices.  The settlement figure consisted of a $26 million civil fine and $3.75 million restitution to customers, FINRA said on March 7. Robinhood failed to “respond to red flags of potential misconduct,” FINRA said, leading to Anti-Money Laundering and supervisory and disclosure violations.

Robinhood to pay $30M to settle US regulator probes

The University of Michigan’s gauge of consumer sentiment fell to 67.8 in a preliminary February reading, down from 71.1 in the prior month and the lowest reading since July.  Economists polled by the Wall Street Journal had expected sentiment to rise to a reading of 74 in February. The decline in sentiment was widespread, with lower readings for Republicans, Democrats and independents. Another key part of the report is the University of Michigan’s measure of inflation expectations. According to the report, Americans’ expectations for overall inflation over the next year jumped to 4.3% in February from 3.3% in the prior month. 

Consumer sentiment drops sharply in February as inflation worries soar

Chime Financial has reportedly confidentially filed for an initial public offering (IPO) in the US, according to a report by Bloomberg. The Bloomberg report, citing sources familiar with the matter, says that Chime is targeting 2025 for its public debut, but its sources add that the timing has yet to be confirmed and plans may change. Founded in 2012, Chime provides digital-first mobile banking solutions to more than 22 million users in the US, offering services such as cashback rewards, checking and high-yield savings accounts, a Visa-powered credit and debit card, earned wage access services, and more. 

US fintech Chime reportedly submits confidential filing for potential 2025 IPO

The European Central Bank on Thursday cut its key interest rate to 3.25%, in its third quarter-percentage-point reduction of the year. The move had been fully priced by markets after policymakers flagged reduced inflation risks and a weakening growth outlook.  It is the first time the ECB has reduced rates at consecutive meetings since December 2011.

European Central Bank lowers key rate to 3.25% in third cut this year: Live updates

Interest rates are coming down, but only after one of the most brutal monetary tightening periods in modern history. And they’re probably coming down too late, too little and too slowly for a lot of smaller companies and the investment funds that chucked money at them over the past few years. Private credit — basically, bilateral corporate loans made by specialist investment funds rather than banks — has been one of the hottest asset classes over the past decade. Possibly the hottest. Depending on who you believe, there’s somewhere between $2tn and $3tn of money in private credit funds.


How is private credit weathering its first big rate hiking cycle?

A Bitcoin-related bill is gaining support in the United States, signaling a potential boost for the cryptocurrency’s value, which could hit $1 million. Former President Donald Trump’s victory in the 2024 presidential election on Nov. 5 has sparked optimism for more crypto-friendly policies.
One of the most anticipated bills is the Bitcoin Act, championed by Wyoming Republican Senator Cynthia Lummis, which proposes the creation of a strategic Bitcoin BTC tickers down $98,418 reserve for the US, making it the first nation to use it as a “savings technology.”

US Bitcoin reserve during Trump presidency could pump BTC to $1M

HPS Investment Partners could hardly be more different than its suitor, BlackRock. Whereas BlackRock, an $11.5tn powerhouse, is best known for investing clients’ funds across huge swaths of public markets, HPS has earned a windfall on targeted bets in the private lending sector. BlackRock’s more than $12bn deal for HPS earlier this month comes as the world’s biggest asset manager is seeking to compete with groups such as Blackstone and Apollo, which are already deeply entrenched in a market widely seen as one of the next major battlegrounds in finance. 



Why BlackRock is shelling out $12bn for private credit shop HPS

London-based fintech Zepz is laying off around 200 IT workers as part of a major redundancy plan, two employees impacted by the move told CNBC. Zepz confirmed to CNBC it is eliminating roles to “sustainably support the next phase of long-term strategic goals and continued growth.” As part of the cost-cutting exercise, Zepz also proposed the closure of business units in Kenya and Poland.

Fintech unicorn Zepz to lay off 20% of its global workforce, sources say

The US Senate has voted to overturn a Consumer Financial Protection Bureau rule that would give the watchdog oversight of tech giants, such as Apple, Google and X, that offer digital payment apps and wallets. Voting along party lines, the Senate backed a Congressional Review Act resolution introduced by Republicans Pete Ricketts and Mike Flood. It still needs to pass in the House of Representatives. Finalised late last year, the CFPB rule is designed to ensure that the big nonbank players follow federal law just like large banks, credit unions, and others already under its supervision.

Senate votes to scrap CFPB oversight of Big Tech payment apps

A group of private credit lenders led by Blue Owl Capital and Ares Management has agreed to take over troubled software company Pluralsight, wiping out $4bn that Vista Equity Partners and other investors had put into the business since they bought it less than four years ago. The closely watched restructuring is one of the biggest in which the creditors that ultimately take control are also so-called direct lenders. The deal values Pluralsight at about $900mn, far below the more than $5bn that Vista, its partners and private lenders had invested or lent to the business. Vista and its co-investors had sunk roughly $4bn into Pluralsight, while lenders provided it with about $1.7bn of debt financing.


Vista and co-investors lose $4bn in Pluralsight restructuring

The RBA cut rates by 25 basis points to 4.10% on Tuesday, marking its first easing since November 2020, when the central bank cut its key rate to a record low in the depths of the pandemic. The central bank had held its policy rate steady at 4.35% since November 2023, following an extended period of 13 rate hikes to tame inflation at home.

Australia’s central bank cuts rates for the first time in more than four years, flags economic uncertainties

Blackstone (BX.N), beat Wall Street's expectations on its key quarterly earnings metric on Thursday, as the world's largest alternative investment firm's assets under management (AUM) hit a record $1.1 trillion and the value of its funds rose. New York-based Blackstone said it saw $41 billion of inflows during the third quarter, while it deployed and committed $54 billion of capital - the highest in over two years - amid a revival in dealmaking activity as the U.S. Federal Reserve cut rates and the economic outlook remained sanguine. Over the past few quarters, high interest rates had been a drag on some aspects of Blackstone's business. With the Fed now entering into an easing cycle, the firm saw that weight starting to lift.

Blackstone tops profit estimate as its assets hit record, dealmaking picks up

The total value of crypto stolen in 2024 was up 21% on the previous year, although still way down on the $3.7 billion nabbed in 2022. Hackers linked to North Korea have become notorious for their sophisticated and relentless tradecraft, often employing advanced malware, social engineering, and cryptocurrency theft to fund state-sponsored operations and circumvent international sanctions. In 2024, North Korea-affiliated hackers stole $1.34 billion across 47 incidents — more than double the amount taken the previous year.

North Korea hackers behind 60% of all crypto stolen in 2024

Investment bankers are gearing up for a pickup in dealmaking activity in global equity capital markets this year, buoyed by a promising pipeline of anticipated initial public offerings of several high-profile companies. Liquefied natural gas producer Venture Global, privately held medical supply giant Medline, and cybersecurity company Sailpoint, backed by private equity firm Thoma Bravo, are expected to headline a crowded line-up of stock market flotations in the first half of 2025, according to people familiar with the matter. Private equity firms have been struggling to sell or list portfolio companies over the past two years due to high interest rates and volatile stock markets that put a chill on dealmaking.

Bankers hope for IPO revival in 2025 as high-profile listings stack up

Ally Financial's credit challenges have intensified over the current quarter as borrowers struggled with high inflation, the consumer lender's finance chief said on Tuesday. Shares of the company fell as much as 19.3%, set for their worst day since March 2020. Consumers have been cutting back on loans amid high interest rates, with the looming economic uncertainty also upping the chances of more loan defaults. In July and August, delinquencies and net charge-offs - that is, debts unlikely to be recovered - rose about 20 and 10 basis points, respectively, in Ally's retail auto business compared with its expectations, Chief Financial Officer Russell Hutchinson told investors at a financial conference in New York. 

Ally Financial warns of 'intensifying' credit challenges, shares slump

In a significant move to counteract international sanctions and reduce dependency on the global financial system Swift, Russia has called on BRICS nations to establish a new cross-border payments network, reported Bloomberg. This initiative is aimed at facilitating transactions in local currencies and strengthening economic ties within the bloc. The proposed network would involve a consortium of commercial banks capable of executing transactions in the respective local currencies of BRICS countries. It also suggests the establishment of direct connections between central banks to further insulate the group from external financial systems.

Russia proposes Swift alternative for cross-border payments

Mastercard introduced a new solution that will enable banks to facilitate commercial cross-border payments that are near real-time, predictable and transparent. The new Mastercard Move Commercial Payments is designed to simplify operations, optimize liquidity, reduce counterparty risk and provide end-to-end visibility for banks and their customers, the company said in a Monday (Oct. 21) press release.

Mastercard Introduces New Commercial Cross-Border Payment Solution for Banks

Five banking associations have called on the CFPB to withdraw its new regulation on overdraft fees, arguing that it is unnecessary due to recent innovations and could potentially harm consumers.The coalition, which includes the Bank Policy Institute and the American Bankers Association, cautioned that the rule would harm millions of consumers who rely on overdrafts, particularly those with limited, if any, options for meeting short-term liquidity needs.

Banking Associations Warn New Overdraft Rule Could Harm Consumers

Major private equity firms have faced significant obstacles in selling or listing their China-based portfolio companies in 2023, with Beijing’s tightening restrictions on IPOs and a decelerating economy having left foreign investors’ capital effectively trapped, according to a report by the Financial Times. Citing data from Dealogic, the report reveals that none of the 10 largest global private equity groups operating in China have successfully listed a Chinese company or fully exited through M&A this year. This marks the first such occurrence in over a decade, though the pace of exits has been sluggish since Beijing imposed restrictions on Chinese companies’ overseas listings in 2021. 

Blackstone, KKR, CVC curbed by China’s IPO clampdown

WaFd Bank is exiting the single-family mortgage lending business, spurring an 8% reduction in the lender’s workforce, the Seattle-based bank said Thursday. The job cuts affect 174 employees, based on a headcount of 2,175 the bank reported at the end of 2024, according to quarterly financial results WaFd disclosed Thursday. The cuts also factor in the bank “right sizing other support areas,” WaFd CEO Brent Beardall said in the earnings release.

WaFd sheds 8% of staff with mortgage exit

State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), announced today that it is working with Apollo Global Management, Inc. (NYSE: APO), a leading provider of alternative assets and retirement solutions, and its affiliates (collectively, Apollo), to expand investor access to private market opportunities. "Private assets are one of the fastest growing sectors of the financial industry. We are excited to be working with Apollo, a global leader in alternative assets, to continue to increase accessibility to private markets, opening them to an even larger cross section of investors," said Ron O’Hanley, president and chief executive officer of State Street. 

State Street Global Advisors and Apollo Global Management Join Forces to Increase and Broaden Investor Access to Private Markets

Stripe, the FinTech giant, is reportedly in talks to acquire crypto startup Bridge for $1 billion, according to sources familiar with the discussions. This potential acquisition would be the largest to date for Stripe, which was recently valued at $70 billion. However, the deal is still under discussion and subject to regulatory considerations and compensation for employees. 
Bridge, a provider of infrastructure for crypto stablecoins, has previously raised $58 million in funding and has a strong customer base that includes government departments and companies like SpaceX and Coinbase. The startup offers software that enables businesses to accept cross-border payments made with stablecoins. 

Stripe Aims for Largest Acquisition Yet with $1 Billion Deal for Bridge

Growth in the payments industry, which was once characterized by rapid expansion, is now slowing as the shift from cash to digital payments has reached its peak, according to BCG research. The BCG Global Payments Report 2024 found that revenue growth is expected to halve by 2028, with global revenues set to rise at a compound annual growth rate of just 5% to $2.3 trillion. This marks a sharp decline from the 9% growth recorded in the previous five years, which saw revenues to $1.8 trillion in 2023.

Payments Industry Growth Slows as Cash-to-Digital Shift Reaches Peak

BlackRock has a handshake deal to buy private credit group HPS Investment Partners, the Financial Times reported on Wednesday. The final deal value would be closer to $12 billion, which offers a significant premium over HPS's post-IPO valuation of $10 billion, the report said, citing two sources familiar with the matter. The two sides have agreed on the broad outline of the deal with an eye towards announcing general terms after the U.S. Thanksgiving holiday, the report added, citing four people familiar with the matter.

BlackRock has deal to buy private credit manager HPS, FT reports

The ultra-rich run family offices, hire wealth managers and hold stakes in private investment funds. For those who are well-off but hardly jetsetters, however, portfolios look much more mundane. Typically, their largest asset is their home. Other holdings might include a 401(k), a few stocks, a bank account and a car. There’s nothing terrible about this sort of asset assortment. But, given that over the years we’ve seen a persistent pattern of the ultra-wealthy getting wealthier, it’s reasonable to think the bottom 99.9% might also benefit from the tools and investment vehicles the rich have at their disposal. 

Wealth Management Startups See Funding Rise

Recent and upcoming rate cuts will provide relief for private credit borrowers through lower funding costs in 2025, even as many have already benefitted from repricing and improving financing conditions. 

How This Will Shape 2025 
Repricing will continue to change market dynamics. Companies should see a bigger benefit from rate cuts in 2025 than this year. Competition and convergence between public and private markets will continue. With growth and innovations in private markets, some borrowers have the luxury of choice between broadly syndicated or private credit. 

Private Markets: How Will Private Credit Respond To Declining Yields?

Cross-border payments keep the world connected, fueling everything from international trade to daily transactions. However, in the rapidly developing world, traditional systems like SWIFT might find themselves outdated. They are starting to fall behind, stopped by delays, high costs, and inefficiencies. This results in less year-on-year growth. Due to inconveniences, they have gradually been replaced by blockchain, a revolutionary technology promising to shake up how money moves across borders. Think speed, transparency, security, and cost savings tools all into one—this is blockchain. Let’s dive deeper into this topic and consider why blockchain is leading this financial revolution.

Blockchain vs. SWIFT: Why Traditional Systems Can't Keep Up in the Global Economy

 Inflation in the euro area rose from 1.7% to 2% in October, flash figures showed Thursday, coming in slightly higher than the 1.9% forecast. Core inflation and services inflation were both unchanged on the previous month. Markets currently expect the European Central Bank to cut interest rates by another 25 basis points in December, with one analyst saying the latest data would end debate over whether a larger 50-basis-point cut is warranted.

Euro zone inflation rises to higher-than-expected 2%, weakening case for jumbo rate cut

The Bank of England aims to develop the ability to lend to non-bank financial institutions (NBFIs). It is doing so to address potential liquidity challenges in core financial markets that could threaten the United Kingdom’s financial stability, the bank said in a final report on its system-wide exploratory scenario exercise. This exercise explored how the U.K. financial system — including banks, insurers, pension plans, hedge funds, asset managers and central counterparties — would respond to a market shock, it said in the report. It found that while NBFIs have become more resilient in recent years, that could change over time, and those changes could be amplified by the financial system as a whole, according to the report. 

Bank of England Seeks Ability to Lend to Non-Bank Financial Institutions

India’s central bank expectedly kept the benchmark interest rate unchanged at 6.50% on Friday as it struggles to contain rising inflation without hurting growth in Asia’s third-largest economy.
The central bank also announced a cut to banks’ cash reserve ratio by 50 basis points to 4.0% to bolster liquidity in the economy. Reserve Bank of India Governor Shaktikanta Das said the central bank had revised India’s GDP growth outlook for fiscal year 2025 down to 6.6% — RBI had forecast 7.2% growth in October.

Asia Economy India’s central bank revises down economic growth forecast for 2025, keeps interest rate steady

BlackRock’s Bitcoin exchange-traded fund (ETF) saw its largest-ever single-day outflow as Bitcoin funds notched a fourth straight trading day of outflows totaling more than $1.5 billion. BlackRock’s iShares Bitcoin Trust ETF (IBIT) hit $188.7 million in outflows on Dec. 24, surpassing its previous record of $72.7 million set on Dec. 20, per CoinGlass data. All 12 United States-based spot Bitcoin ETFs saw joint total outflows hit $338.4 million on Christmas Eve. Since Dec. 19, the funds have seen joint net outflows of $1.52 billion.

BlackRock’s Bitcoin ETF sees record outflow as funds bleed $1.5B in 4 days

The People’s Bank of China held the 1-year loan prime rate at 3.1%, and the 5-year LPR at 3.6%, according to the PBOC statement. The PBOC has ramped up measures lately to avoid a sharp fall in the currency that could spark excessive volatility while stressing the importance of FX stability. The central bank had surprised the markets by shaving the major short- and long-term lending rates in July, followed by a widely-anticipated 25-basis-point cut in October.

China keeps benchmark lending rates unchanged as it contends with a weakening yuan

Blackstone Group has put First Eagle Investment Management up for sale for more than $4bn in an attempt to offload a large stake that the US private equity group has owned for a decade. Blackstone and Corsair Capital, which acquired First Eagle for $4bn in 2015, have hired Morgan Stanley to lead the sale process, said people briefed on the matter. The two buyout groups are seeking to capitalise on a wave of takeover activity in the asset management sector as PE buyers and financial services firms pile into fee-based financial businesses. First Eagle generates about $500mn of annual earnings before interest, taxes, depreciation and amortisation, the people said. The business is expected to fetch a valuation of more than $4bn, they added. 

Blackstone puts First Eagle up for sale for $4bn

Nearly half of bank leaders believe their institutions will buy another bank in 2025, suggesting a potential uptick in merger activity in the coming year, according to a new survey on M&A by Bank Director. Forty-three percent of bank leaders said their institutions were very or somewhat likely to buy another bank next year, up from 35% a year earlier, Bank Director reported. As for the reasons, respondents cited scale to drive technology and other investments (43%) and geographic expansion (37%) as the two most important factors driving acquisition strategies.

Bank Leaders Expect Merger Activity to Accelerate in 2025

Decentralized exchanges (DEXs) set a record high in December, with monthly trading volume soaring to $462 billion, according to decentralized finance (DeFi) data platform DefiLlama. Data released on Dec. 30 showed that December was the highest-ever month for DEX volumes, continuing momentum from November. In November, the DeFi space saw a monthly volume of $374 billion, driven by anticipation of a more favorable regulatory regime in the United States following Donald Trump’s victory in the US presidential election. 

Decentralized exchange volume hits record high of $462B in December

Higher interest rates and lower consumer spending are squeezing debt-laden companies backed by private equity groups, forcing them to either restructure through bankruptcy or buy time to recover via out-of-court settlements with creditors. The stress on private equity-backed companies shows up starkest in a recent study by S&P Global Market Intelligence, which shows that a record number of 110 private equity and venture capital-backed companies filed for bankruptcy in 2024. 


‘Leveraged to the hilt’: PE-backed firms hit by wave of bankruptcies

The European Central Bank (ECB) is developing a new platform to settle transactions using distributed ledger technology (DLT) in central bank money, aiming to integrate and harmonise the European financial market for digital assets. The move is part of the ECB’s ongoing efforts to ensure that the financial sector can leverage the benefits of DLT while maintaining the stability and integrity of the monetary system. The initiative will follow a dual-track approach, with the immediate focus on developing an interoperability link with TARGET Services. These services facilitate the movement of cash, securities and collateral across Europe, playing a key role in the financial infrastructure.

European Central Bank Outlines Two-Track Approach to Enhance DLT Transaction Settlements

A week’s worth of inflation data showed that price pressures have eased substantially since their meteoric rise in 2021-22. Fed officials head into their two-day policy meeting Tuesday closer to their goal of low inflation, but how much they will ease interest rates remains an open question.  “The federal funds rate has been over 5%, has been there for over a year to fight inflation. That fight is won. They need to start getting out of the way,” economist Claudia Sahm said.

The Fed has the proof it wants that inflation is slowing, but the next move is still up in the air

South Korea’s central bank lowered its key policy rate for a second straight month and said the country’s economy will grow at a slower pace than it initially anticipated. Following a policy meeting, the Bank of Korea cut its benchmark interest rate by a quarter percentage point to 3%. The bank lowered its outlook for the country’s economic growth to 2.2% from 2.4% for this year and to 1.9% from 2.1% for 2025. The bank is taking steps to lower borrowing costs despite the lingering effects of high inflation and alarming levels of household debt, as the economy falters.

South Korea’s central bank cuts key interest rate to nurse a slower economy

AltIndex’s report showed that this growth was driven by Bitcoin's rally, spot ETF approvals, increased DeFi activities, and regulatory clarity in key regions. Binance dominated the market by reportedly processing 40% of all crypto trades with $7.7 trillion in trading volume.The crypto market experienced a monumental performance in 2024. Boosted by major developments like regulatory clarity, Bitcoin spot ETF approvals, and DeFi innovations, the average monthly trading volume soared to $1.5 trillion, up a staggering 135% from last year, AltIndex reported.

Crypto Sees Second-Best Year Ever: 2024 Trading Hits $18.4 Trillion

In a statement Thursday, Sen. Elizabeth Warren, D-Mass., said she was “pleased” the Federal Deposit Insurance Corp. would review the decision to lay off more workers. The recent FDIC firings were part of DOGE’s effort to shrink the federal bureaucracy. The FDIC is already severely understaffed, Warren has said.

Sen. Elizabeth Warren: DOGE’s FDIC firings put banking system at risk

The new research looks at the UK’s banking sector and how it compares to other G8 countries. It notes that as a result of deregulation reforms, stable interest rates, and divestment of price equity firms as funds near the five-year mark post-pandemic, 2024 could be a pivotal year for UK banking, especially from a job searcher’s point of view. Since 2022, risk and compliance has consistently been the most in-demand area in banking recruitment. This trend is expected to continue in 2024, with 4,559 vacancies representing 15 percent of all sector roles, despite a 20 percent decrease in vacancies. 

Investment Bank Vacancies Soar While Retail Banks Face Decline Reveals Morgan McKinley

The majority of public pension funds and sovereign wealth funds (58%) expect to increase their infrastructure allocations over the next 12 to 24 months, according to the OMFIF’s Global Public Funds 2024 report. The Official Monetary and Financial Institutions Forum is a forum for central banking, economic policy and public investment. Twenty-eight global public funds with a combined $6.5 trillion in assets. This is up from 53% that had the same expectation in last year’s survey and 42% in 2022. 

Most global public funds plan to increase infrastructure allocations — OMFIF report

China will sharply increase funding from ultra-long treasury bonds in 2025 to spur business investment and consumer-boosting initiatives, a state planner official said on Friday, as Beijing cranks up fiscal stimulus to revitalise the faltering economy. Special treasury bonds will be used to fund large-scale equipment upgrades and consumer goods trade-ins, said Yuan Da, deputy secretary-general of National Development and Reform Commission (NDRC) at a press conference. "The size of ultra-long special government bond funds will be sharply increased this year to intensify and expand the implementation of the two new initiatives," Yuan said. 

China will sharply increase funding from treasury bonds to spur growth in 2025

Web3 technologies are poised to transform the world of commerce just as Web2 revolutionized access to information. The result will be a vast, open, liquid digital marketplace where all physical goods can be listed and traded seamlessly.In the early days of the internet, information was siloed within proprietary networks. Over time, the zero marginal cost of distribution, combined with consumer demand for accessibility, led to the open, searchable internet we enjoy today. Commerce, however, has been slower to evolve due to inherent complexities. Unlike information, physical assets require trust between parties, the ability to mediate disputes and reliable settlement mechanisms. 

How AI Agents and Crypto Will Revolutionize Commerce

The US Department of Justice (DOJ) has filed a civil antitrust lawsuit against Visa over allegations of “monopolisation and other unlawful conduct in debit network markets in violation of Sections 1 and 2 of the Sherman Act”. In a press release announcing the lawsuit on 24 September, the DOJ says: “Filed in the US District Court for the Southern District of New York, the complaint alleges that Visa illegally maintains a monopoly over debit network markets by using its dominance to thwart the growth of its existing competitors and prevent others from developing new and innovative alternatives.”

US Department of Justice files civil antitrust lawsuit against Visa

The National Center for Public Policy Research — a Washington DC-based think tank championing free markets — submitted a shareholder proposal to Amazon saying that a Bitcoin corporate treasury strategy should be considered at the April 2025 shareholder meeting.
According to the proposal, the Consumer Price Index (CPI) used to measure inflation, which currently puts inflation at 4.95%, is a “remarkably poor measure” of true currency debasement. The authors suggested the true inflation rate may be double the reported CPI figure. This greatly erodes Amazon’s $88 billion in cash and short-term cash equivalents, the letter said, and to protect shareholder value, Bitcoin should be used to hedge against this risk. 

National Center for Public Policy Research proposes BTC treasury to Amazon

Wholesale prices rose more than expected in November, adding to a string of sticky inflation prints. Thursday's report from the Bureau of Labor Statistics showed that its producer price index (PPI) — which tracks the price changes companies see — rose 3% from the year prior, up from the 2.4% in October and above the 2.6% increase economists had projected. This marked the highest year-over-year increase since February 2023. On a monthly basis, prices increased 0.4%, compared to the 0.2% seen in October. 

PPI shows wholesale inflation jumped more than expected amid 'extended and bumpy journey' to Fed's target

Citrin Cooperman Advisors LLC (the "Firm"), a premier tax, advisory and accounting provider for private middle market businesses and high net worth individuals, today announced a definitive agreement for a significant investment from private equity funds managed by Blackstone ("Blackstone"). As part of the transaction, Blackstone is acquiring its stake in the Firm from New Mountain Capital LLC ("New Mountain").  Citrin Cooperman was founded in 1979 with a mission to enhance the businesses and personal lives of its clients, partners, and staff through its services, guidance and enthusiasm for building long-standing relationships. 

Citrin Cooperman, a Leading Professional Services Firm, to Receive Significant Investment as Blackstone Acquires Stake from New Mountain Capital

State Street Global Advisors' much-anticipated private credit exchange-traded fund, developed with alternative investment firm Apollo Global Management, began trading on the New York Stock Exchange on Thursday. The SPDR SSGA Apollo IG Public & Private Credit ETF is the first product offering retail investors direct access to a diversified portfolio of private credit assets.

State Street launches Apollo private credit ETF

The Consumer Financial Protection Bureau on Tuesday dismissed its lawsuit against the operator of the Zelle payments network and the three U.S. banks that dominate transactions on it.  The CFPB sued Early Warning Services, which runs the peer-to-peer payments network, as well as JPMorgan Chase, Bank of America and Wells Fargo in December, alleging that the firms failed to properly investigate fraud complaints or give victims reimbursement. The CFPB “dismisses this action against Defendants Early Warning Services, LLC, Bank of America, N.A., JPMorgan Chase Bank, N.A., and Wells Fargo Bank, N.A., with prejudice,” the regulator said.

Finance CFPB drops lawsuit against JPMorgan Chase, Bank of America and Wells Fargo over Zelle fraud

PayPal Holdings, Inc. (NASDAQ: PYPL) announced it is enabling its U.S. merchants to buy, hold and sell cryptocurrency directly from their PayPal business account.  At launch, this functionality for Business Accounts will not be available in New York State. Today's announcement is PayPal's latest step to increase cryptocurrency's utility by making increased functionality available to millions of merchants in the U.S. 

PayPal lets US business accounts buy and sell crypto

Collectively, Americans now owe a record $1.17 trillion on their credit cards, according to a new report on household debt from the Federal Reserve Bank of New York. Credit card balances rose by $24 billion in the third quarter of 2024 and are 8.1% higher than a year ago.Despite that increase, credit card delinquency rates improved — with 8.8% of balances transitioning to delinquency over the last year, compared with 9.1% in the previous quarter, the New York Fed found. That change could “suggest that rising debt burdens remain manageable,” the New York Fed researchers said on a press call Wednesday.

Credit card debt hits record $1.17 trillion, New York Fed research shows

The U.S. budget deficit swelled in November, putting fiscal 2025 already at a much faster pace than a year ago when the shortfall topped $1.8 trillion, the Treasury Department reported Wednesday. For the month, the deficit totaled $366.8 billion, 17% higher than November 2023 and taking the total for the first two months of the fiscal year more than 64% higher than the same period a year ago on an unadjusted basis. The increase came despite receipts that totaled $301.8 billion, about $27 billion more than last November. Outlays totaled $668.5 billion, or nearly $80 billion more from a year ago. The increase in red ink brought the national debt to $36.1 trillion as the month drew to a close.

Budget deficit swells in November, pushing fiscal 2025 shortfall 64% higher than a year ago

The top five banks and thrifts with the largest portfolios of home equity loans had more than $94 million in loans combined for the third quarter of last year — more than half of the roughly $178 million amassed by the top 20 institutions. Discover Financial Services in Ridgewood, Illinois, posted the largest year-over-year change in total home equity loans, jumping from $3.9 million in the third quarter of 2023, to $6.1 million the following year. Other organizations with similar improvements include Third Federal Savings and Loan Association of Cleveland in Ohio with a 28% rise and First Citizens BancShares in Raleigh, North Carolina, with just over 22%.

20 banks and thrifts with the most home equity loans

Investing.com -- The Federal Reserve may need to implement more aggressive rate cuts as recent data reveals a concerning trend in the labor market, according to Citi analysts in a note Wednesday. The bank said the percentage of individuals finding "jobs hard to get" is increasing, signaling that the rise in unemployment is not merely a sign of a growing labor supply but an indication of weak hiring conditions.  Citi notes that this trend, observed in the Conference Board survey, is reminiscent of the conditions in September 2001, a period when the U.S. economy was already in recession. This situation suggests that a “hard landing” could be imminent, making further aggressive rate cuts from the Fed more likely, says the bank.

Fed may have to cut aggressively as individuals finding jobs hard to get is rising

The Payment System Regulator (PSR) has revealed that increases to payment processing fees implemented by Visa and Mastercard since 2017 cost UK businesses an extra £170million a year.It says that these increases drastically impact their ability to invest and grow. This could lead to direct economic constraints, particularly for small merchants, as a lack of easy-to-understand fee information led to costs for acquirers and merchants, including small retailers. 

PSR Finds ‘Lack of Competition’ in Card Market, as High Visa and Mastercard Fees Cost Firms Millions

The Consumer Financial Protection Bureau announced the final version of a rule limiting banks’ ability to charge overdraft fees.  It says the rule will save American consumers $5 billion annually.  The CFPB said its overdraft rule will take effect Oct. 1, 2025, though the rule’s ultimate fate is unclear.

CFPB announces rule limiting bank overdraft fees

Investors looking for more solid longer-term returns should be looking at credit — and not banking on the S&P 500 to get them there, according to billionaire investor Howard Marks. 
“From the S&P, you’re not going to get the historic return of 10% a year for the next decade. You will get something less and if that’s true, then the returns described from credit are quite competitive and dependable,” Marks, co-founder and co-chairman of Oaktree Capital Management, said in an interview with India’s Economic Times published Friday.

Howard Marks expects a lower return from the S&P 500 over the next decade. Here’s what he likes better.

Goldman Sachs  said Monday that it agreed to sell its personal financial management unit to a competitor named Creative Planning. The transaction is expected to close in the fourth quarter of this year and “result in a gain” for New York-based Goldman. The bank declined to disclose the sale price for its PFM business. Goldman acquired a team of about 220 financial advisors managing $25 billion in assets in May 2019, when it announced the $750 million acquisition of United Capital Financial Partners. 

Goldman Sachs unloads another business acquired under CEO David Solomon

U.S. banking regulators on Tuesday unveiled plans to force regional banks to issue debt to protect depositors in the event of more failures. All American banks with at least $100 billion in assets would be subject to the new requirement, which makes them hold a layer of long-term debt to absorb losses in the event of a government seizure, according to a joint notice from the Treasury, Office of the Comptroller of the Currency, Federal Reserve and Federal Deposit Insurance Corporation.

Regulators unveil plans to force regional banks to raise debt in case of failure

The Bank of England’s losses on bonds bought to shore up the U.K. economy will be “materially higher than projected,” according to Deutsche Bank. In late July, the Bank of England estimated that it would require the U.K. Treasury to backstop £150 billion ($189 billion) of losses on its asset purchase facility.

The Bank of England is facing major losses on its bond purchases — and it’s set to get much worse

The biggest fintech news of the week centered around Better.com’s no good, very bad public market debut. Or as my friend and colleague Alex Wilhelm described it, Better.com had a Miserable.com week. To sum it up, digital mortgage lender Better.com made its public debut on August 24. To no one’s surprise, the stock wasn’t exactly a hit with public investors. In fact, it was a resounding bomb. As of Friday, August 25, the stock had closed a mere $1.19. Shares of SPAC partner, Aurora, were trading at $17.45 on Wednesday, before Better.com officially went public. This is a company that two years ago had planned to go public at a $7.7 billion valuation.

Better.com’s public market debut was Miserable.com

Subprime consumers are falling behind on their credit-card bills. From Generation Z and millennials to Generation X and baby boomers, credit-card delinquency rates have been trending upwards for four generations of borrowers since January 2020, reaching a new high in August, according to new data from VantageScore. Borrowers with a VantageScore between 300 and 600 across these four cohorts experienced an 8.9% delinquency rate — of 30 to 59 days — in July 2023, up from 7.49% a year earlier. Credit-card delinquency rates at smaller banks hit a record high of 7.51% in the second quarter of 2023, up from 6.01% at the same time last year, according to the Federal Reserve Bank. 

Is there a subprime credit-card crisis on the horizon? 

The collapse of Silicon Valley Bank and the US regional banking crisis that followed earlier this year had major economic and regulatory repercussions for lenders across the globe, some of which may be felt for years to come. But now that the more immediate threat of the crisis has dissipated, some clear winners have emerged. Shares of UBS (UBS) are up about 20% since it rescued Credit Suisse from collapse, and just last week the bank reported a $29 billion quarterly profit. The huge figure was almost entirely due to the discrepancy between Credit Suisse’s balance sheet value and the $3.8 billion that UBS paid to acquire the bank. JPMorgan Chase (JPM) shares, meanwhile, have gained more than 6% since it purchased First Republic Bank. 

How big banks won the banking crisis

U.S. banks collectively held more than $1.2 trillion in brokered deposits in the second quarter, according to a Wall Street Journal analysis of data from the Federal Deposit Insurance Corp. The total marked an 86% increase from a year earlier. Brokered deposits are what they sound like: A bank can go to a third-party broker such as Morgan Stanley or Fidelity to find customers to invest in the bank’s high-yielding certificates of deposit. That allows the bank to get big influxes of money at once, rather than customer by customer. Lots of banks are loading up on them—a sign of the distress that continues to afflict many lenders who now must compete for customer funds they long took for granted.  

Banks Load Up on $1.2 Trillion in Risky ‘Hot’ Deposits

Close to a third of all publicly-held, outstanding U.S. government debt is set to mature in the next 12 months, raising questions about where Treasury might go from there to finance the government’s borrowing needs. A total of $7.6 trillion will mature in the next year, approaching the level seen in early 2021. Concerns about Treasury’s increased issuance of T-bills and the potential for volatility or market disruptions emerged following the debt-ceiling fight in May, when angst over the government’s ability to pay all its bills pushed yields above 7% on debt maturing in early June. 

$7.6 trillion of publicly held U.S. government debt matures in next 12 months. What does the Treasury do next? 

The U.S. Federal Reserve launched FedNow in July, the first government real-time payment system in the U.S. The service allows banks and credit unions to transfer money for their customers instantly. Working alongside existing systems like Fedwire and FedACH, FedNow aims to improve the U.S.'s inter-bank and retail transaction infrastructure.

Simmons Bank - Reviews