The Federal Reserve announced on Friday that it would not extend an important rule accommodation put in place last spring that helped banks continue to lend to small and medium-size businesses as the economic effects of the pandemic took hold. The rule change allowed banks to exclude Treasury securities and deposits with the Federal Reserve from a ... READ MORE >
Financial Services
Comprising everything from private equity firms to family offices, financiers are active participants in the middle market. They provide the vital capital infusions needed to take growth companies to the next level.
Short-term rates and economic expansion at risk without Fed’s SLR extension
With the economic recovery still in its early stages, an important component of the Federal Reserve’s response to the economic collapse last spring is in danger of expiring. It’s called the supplemental leverage ratio, or SLR, and the Fed lowered it last spring to help banks maintain liquidity and continue lending through the deepening crisis. In the ... READ MORE >
With embedded finance, Walmart takes aim at consumer financial services
The recent announcement that Walmart has hired away two executives from Goldman Sachs to run its nascent fintech division was the clearest sign yet that the retail giant intends to compete in the consumer financial sector, especially with players in the middle market. David Stark and Omer Ismail, both former partners at Goldman Sachs, will build what ... READ MORE >
Low interest rates offer private equity firms a rare opportunity to invest
As the Federal Reserve maintains historically low interest rates, private equity firms in the middle market have an opportunity to make more affordable capital investments that will pay off in the future. It's the result of the unusual current environment on interest rates, with the yield on 10-year Treasury securities hovering around negative ... READ MORE >
CHART OF THE DAY: ESG comes to financial services
As more and more companies adhere to environmental, social and governance practices, or ESG, financial services firms have started to fall under scrutiny for their practices. It marks a shift from the early days of ESG, when much of the attention was focused on industrial companies and environmental concerns. Since March of last year, the number of public ... READ MORE >
Private equity and venture capital stay resilient in the EU and UK
After a year of upheaval, private equity and venture capital dealmaking ended last year on a strong note in the European Union and the U.K., and that momentum is poised to continue. Consider where the industry stood at the beginning of 2020. After the Conservative Party’s decisive victory in late 2019 and the promise of a deal on Brexit, private ... READ MORE >
CHART OF THE DAY: How stablecoins are helping lay the groundwork for digital currencies
For much of the short history of digital assets like bitcoin, their buyers have used them mostly as a store of value -- like gold. Their price volatility is one reason that they have not gained greater acceptance as a means of exchange, like a traditional currency. But there are signs that is about to change with the rise of stablecoins -- or digital ... READ MORE >
How SPACs and direct listings are reshaping the capital markets
The volume and dollar value of public listings went on a tear last year as private companies took advantage of a bullish stock market to raise cash at attractive valuations. Activity in January indicates that this momentum has carried over into the new year with three methods of going public -- special purpose acquisition companies, direct listings and ... READ MORE >
Comptroller of the Currency puts the fair access rule on hold
The Office of the Comptroller of the Currency (OCC) has put a hold on its recently issued fair access rule, the agency announced. The rule, which would have barred banks from denying loans to businesses on political or ideological grounds, passed two weeks ago under acting Comptroller Brian Brooks, but was widely criticized across the banking ... READ MORE >
How regulatory oversight may change at five agencies under Biden
With President Biden’s cabinet taking shape, regulated entities in the financial services industry like banks, specialty lenders and capital markets firms are starting to get a better picture of what changes might be in store. For these firms, the question is no longer if regulations will change, but how much they will change. With control in the ... READ MORE >