FT News Briefing Banks try to avoid ending up like SVB
Jun 29, 2023
The British pound experienced its largest drop in a month amid growth concerns. U.S. banks are aggressively selling loan portfolios to manage liquidity challenges. The banking sector is adapting to stricter capital requirements, while a high-profile hedge fund faces scrutiny over serious misconduct allegations. Odey Asset Management is reshuffling its structure in response to reputational damage. Listeners are also treated to insights on navigating inflation and a refreshing gin and tonic recipe.
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Sterling's Decline and UK Inflation
- Sterling's recent fall against the dollar indicates investor concern over the Bank of England's interest rate hikes.
- A weaker pound could worsen the UK's inflation problem, creating a challenge for the Bank of England.
Banks' Liquidity Strategies
- Mid-sized US banks are selling loan portfolios to increase liquidity after the SVB and First Republic failures.
- They are also reevaluating their loan portfolios to adapt to potential higher capital requirements.
Odey Asset Management Crisis
- Odey Asset Management faces crisis after sexual misconduct allegations against its founder, Crispin Odey.
- The firm suspended funds, and its banking partners cut ties, impacting investors.