UBS just delivered another earnings expectations beat, what a surprise right? If it wasn’t for the Swiss regulator, who is aware of the bank’s real condition and doesn’t back off from asking UBS bank management to significantly increase their capital to prepare for potential significant losses (“Switzerland’s Finance Sheriff Takes…
Category:Banks
HSBC Q1-25: AN EFFORT TO EAT ITS CAKE AND HAVE IT TOO
HSBC Q1-25 financial earnings have just been released and despite a 25% earnings drop compared to the previous year, the market couldn’t resist rewarding the bank, sending its shares higher (~2% at the moment) for announcing its first interim dividend of 2025 and, most importantly, for increasing its share buyback…
WITHOUT THE FED RESUMING QE, THE US WILL FACE A DEBT CRISIS VERY SOON
If foreign countries and companies are going to have less USD going forward, who is going to buy US debt? These past few days, I have been paying close attention to the narratives and dynamics developing around the tariffs war topic, but somehow nobody has brought attention to the crucial…
BANK OF AMERICA’S Q1-25 EARNINGS: MORE SMOKE AND MIRRORS TO HIDE ITS INSOLVENCY
Bank of America (BAC) just released its Q1 2025 earnings, and if you thought past balance sheet shenanigans were wild, you’re in for another ride. Back in November 2024, in HOW BANK OF AMERICA IS HIDING ITS MOUNTING PROBLEMS BEHIND A MOUNTAIN OF REPURCHASE AGREEMENTS, we discussed how BAC heavily…
NORINCHUKIN BANK IMPLOSION OFFICIALLY BEGINS
“Is it possible for a bank to continue operating while being insolvent? The answer is yes, and Norinchukin Bank is the best example of it at the moment”. This was how I started my last article on Norinchukin Bank 3 months ago. This is why yesterday I wasn’t surprised at…
WHY THE SITUATION OF UBS IS VERY DANGEROUS
A notification pops up on my phone about UBS’s latest earnings results and how cheerfully the market reacted, sending the stock up ~3% at the opening. As I always do, I go to the company’s investor relations website, download the latest report, and start reading. It didn’t take me long…
CORPORATE BANKRUPTCIES VS BANKS EXPECTED CREDIT LOSSES: TWO PARALLEL WORLDS
The Q4-2024 banks earnings season officially started with JP Morgan, Wells Fargo, Goldman Sachs, BNY Mellon, and Citigroup kicking off the “beat expectations” parade: Between one “Kumbaya!” and a “High Five!”, one small detail across all these earnings reports clashes significantly with reality: provisions for expected credit losses. Before diving…
STATE FARM KNEW A LOS ANGELES (FINANCIAL) CATASTROPHE WAS ONLY A MATTER OF TIME
Insurance isn’t really an area that I had much interest in, mostly because in the countries where I’ve lived, it has generally been a well-run and stable business. However, the recent Los Angeles wildfires prompted me to look into this sector in California more closely, and what I discovered is…
THE CENTRAL BANK “KING” IS MORE AND MORE “NAKED”
“Why are central banks cutting rates while yields are going up? How is this possible?” This is the question many people are asking themselves at the moment. Surprisingly, those experiencing the highest degree of confusion and bewilderment appear to be institutional investors rather than retail investors. The reason is that…
WHY SOUTH KOREA IS OFFERING A PREVIEW OF GERMANY’S ECONOMIC IMPLOSION
Despite being geographically very distant from each other, South Korea and Germany are, in reality, more similar economically speaking than everyone thinks. Both countries appear “very safe” considering the very low public debt-to-GDP ratio they both showcase: 46% for South Korea and 62% for Germany. What if we add private…