Expert in banking outlook, Chris Whalen, discusses the banking sector's cleaning house of bad assets, Basel III potential shelving, and impacts on sentiment in China. Topics include capital markets picking up, smaller banks outpacing larger ones, private credit, and the Chinese shadow banking system.

Chris Whalen, chairman of Whalen Global Advisors, returns to Forward Guidance to comment on the ample and growing earnings of the big banks (particularly JPMorgan Chase, whose stock surged over 7% on rosy net income and increasing deposits). Whalen argues that banks’ unrealized losses on their securities due to interest rate risk have gone down dramatically as interest rates have fallen since the collapse of Silicon Valley Bank (SVB) on March 10. However, he expects banks’ cost of funds (what they have to pay for deposits) to continue to rise and he makes the case that the primary headwind for banks is not interest rate risk, but credit risk. Whalen argues that while there could be more bank failures ahead, he expects it will be the outlier banks that fail, not the mainstream banks.This interview was filmed the morning of Friday, April 14th, shortly after large American banks such as JPMorgan Chase, Wells Fargo, and Citigroup reported their earnings for the first quarter of 2023. __Today’s show is brought to you by VanEck. Go to https://vaneck.com/ForwardGuidanceto access VanEck's Income Investing Yield Monitor.__Follow @vaneck_us on Twitter, this episode's sponsor https://twitter.com/vaneck_usFollow Chris Whalen on Twitter https://twitter.com/rcwhalenFollow Jack Farley on Twitter https://twitter.com/JackFarley96Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidanceFollow Blockworks on Twitter https://twitter.com/Blockworks___Timestamps:(00:00) Intro(04:55) "Banks Have Lots Of Commercial Real Estate Exposure"(06:24) Banks' Unrealized Losses Have Gotten Smaller Over The Past Month(08:25) The Return Of Credit Risk(16:06) Is The Banking Crisis Moderating? If So, Why?(19:18) Van Eck Ad(20:06) There's A Slowdown in Lending(22:08) Quantitative Easing's Distortion Of Bank Balance Sheets(24:32) Chris Suggests The Fed Sell Securities Into The Market(28:27) "The Bid For Risk Free Dollar Assets Is Still Off The Scale"(30:12) Recent Rally In Bonds Has Helped Bank Book Value(36:23) "People Love To Say The Word 'Hedge' And Then Change The Subject"

Chris Whalen, an expert on banking, discusses the alarming trend of countries accumulating unsustainable debt levels, drawing parallels to historical American debt experiences. The conversation explores the consequences of continuous borrowing, the need for behavior change, and the looming market inflection point regarding deficits and the demand for the dollar. Insights on inflation impact on housing, financial literacy deficiencies, and upcoming book release are also shared.

Chris Whalen, Chairman of Whalen Global Advisors and author of The Institutional Risk Analyst, shares valuable insights on the financial landscape following a new administration. He discusses how serious measures on deficit reduction could lead to lower rates without Federal Reserve intervention. Whalen also analyzes Treasury Secretary pick Scott Bessent, the future of Fannie Mae and Freddie Mac, and the implications of Bitcoin as an inflation indicator. His perspectives on the bond market and economic strategies are both intriguing and thought-provoking.

Chris Whalen, an investment banker and chairman of Whalen Global Advisors, discusses the economic landscape and the Federal Reserve's challenges in fighting inflation. He analyzes the current indicators, revealing a complex relationship between rising home prices and monetary policy. Whalen highlights the struggles of first-time buyers and the government's failure to address housing supply issues. He emphasizes the need for fiscal responsibility and the importance of resilience as the economy faces uncertainties, encouraging active engagement for future improvements.

Chris Whalen, financial advisor and founder of Whalen Global Advisors, discusses the challenges in the US banking sector, particularly in commercial real estate. He highlights the impact of COVID, rising interest rates, and potential credit events. Whalen also explores the consequences of interest rate shocks, the importance of risk management for banks, and the proposals of Basel 3. Additionally, he delves into gain on sale accounting, mortgage servicing rights, and the future outlook for the banking sector.

Chris Whalen, investment banker and author, discusses the impending maxi reset in home prices and potential bank failures. The commercial real estate sector faces pain, while the housing market is expected to undergo a reset. The Federal Reserve may need to drop rates and increase reserves. The US debt situation is a concern, and the release of Fannie Mae and Freddie Mac from conservatorship is unlikely.

Chris Whalen of Whalen Global Advisors discusses recent bank earnings, commercial real estate risks, U.S. banking sector outlook, Charles Schwab's financial position, challenges faced by City and Goldman Sachs, and the resilience of financial companies

Chris Whalen, an institutional risk analyst at Whalen Global Advisors and author of "Seeing Around Corners," shares insights into the remarkable surge of bank stocks reminiscent of the late '90s. He tackles rising consumer credit delinquencies, the precarious state of banks facing interest rate challenges, and the dynamics of construction loans. Whalen also emphasizes the ethical concerns in credit reporting and critiques recent monetary policies, exploring the future of the dollar in a shifting global financial landscape.

Chris Whalen, an investment banker and author known for his economic insights, shares his analysis of the challenging economic landscape. He discusses the risks in corporate credit and commercial real estate, emphasizing the need for vigilance as defaults rise. Whalen elaborates on the implications of the upcoming election for the economy and why he believes the Fed won’t make rate cuts this year. He also highlights investment opportunities amid uncertainty and the ongoing issues surrounding Fannie Mae and Freddie Mac.