Yale School of Management

Posts by Market Commentary

Banks’ Second-Quarter Results Boosted by Non-Interest Income and Official Support

July 24, 2020
In the midst of the COVID-19 lockdown, earnings beat expectations for most large US banks in the second quarter, as a surge in non-interest income offset rising loan-loss provisions, and banks benefitted from Federal Reserve liquidity programs and regulatory forbearance. Continue reading “Banks’ Second-Quarter Results Boosted by Non-Interest Income and Official Support”

No bank should be paying dividends right now

July 14, 2020
This blog was published today in the American Banker . In the midst of one of the fastest and deepest economic declines in U.S. history, the largest banks are expected to pay out about $14 billion in dividends in the third quarter, while remaining under a cap imposed by the Federal Reserve in response to the coronavirus pandemic. Continue reading “No bank should be paying dividends right now”

Use of Federal Reserve Programs - 06/25/2020

June 25, 2020
Below we report on operational Fed programs, based on the Fed’s weekly H.4.1 release. Since last week, the Treasury’s equity contribution to the Term Asset-Backed Securities Loan Facility was invested in securities; however, no facility-specific assets have been purchased so far. The Bank of England signifantly decreased its use of the swap lines established with the Fed in March. It is now the Fed’s smallest counterparty. Continue reading “Use of Federal Reserve Programs - 06/25/2020”