Steven Kelly, Associate Director of Research at the Yale Program on Financial Stability, returns to Forward Guidance to update Jack on the Federal Reserve’s forthcoming plans to increase capital requirements for U.S. banks. Filmed on July 11, 2023.____Follow Steven Kelly on Twitter https://twitter.com/StevenKelly49Follow Jack Farley on Twitter https://twitter.com/JackFarley96Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidanceFollow Blockworks on Twitter https://twitter.com/Blockworks_Kelly’s latest “Without Warning” Substack: https://www.withoutwarningresearch.com/p/the-macro-story-of-svb-isnt-just____Use code GUIDANCE20 to get 20% off Permissionless 2023 in Austin:https://blockworks.co/event/permissionless-2023Research, news, data, governance and models – now, all in one place. As a listener of Forward Guidance, you can use code GUIDANCE10 for a 10% discount when signing up to Blockworks Research https://www.blockworksresearch.com/____Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:https://rb.gy/5weeywMarket commentary, charts, degen trade ideas, governance updates, token performance, can’t-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter: https://rb.gy/feusos____Timecodes:(00:00) Introduction(02:45) Bank Capital Ratios, Explained(18:52) Busting Myths About Banks' Interest Rate Hedging(38:15) Accounting For Unrealized Losses(46:56) How Much Money Is Leaving the Banking System?(54:16) U.S. Banking System Is "Stable But More Fragile"(01:02:47) The Basel III Endgame(01:05:54) Interest Rates And Financial Stability____Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

Steven Kelly, Associate Director of Research at Yale’s Program on Financial Stability and a financial markets expert, discusses the evolution of risks in the banking system. He explains the shift of lending from traditional banks to private credit, revealing how this has created new challenges. Kelly emphasizes that while risks may appear to be minimized, they often return, especially when outside entities rely on banks for leverage. The conversation highlights the need for proactive regulation to manage these evolving financial landscapes.

Steven Kelly, Associate Director of Research at the Yale Program on Financial Stability, discusses the financial stability implications of the discount window with David Beckworth. They touch on issues with FHLBs, fixing reporting challenges, restarting term auction and liquidity facilities, and more.

Steven Kelly, Associate Director of Research at the Yale Program on Financial Stability, discusses the relationship between stock prices and bank health, debunking myths and emphasizing the misunderstood aspects of bank solvency. He also explores the potential of tokenization in financial transformation outside of crypto contexts, highlighting regulatory concerns. The conversation further delves into the role of the FHLB in the American financial system and the dynamics of financial institutions, including a heated debate about the merits of potatoes.

Colby Smith, Steven Kelly, and Gerard DiPippo discuss the major surprises and underreported stories of 2023. They also talk about the challenges in predicting economic trends and the consequences of war on the defense industry. Additionally, they explore geopolitical risks, the cost of large central bank balance sheets, and the Fed's framework review.