The Institutional Risk Analyst

Until Chairman Powell comes clean with the Congress and the American people, more banks will inevitably fail.

The Treasury and Fed cannot admit fault for fear of bringing the whole house of cards crashing down.

The Fed by definition cannot make a profit and is always an expense to the Treasury, thus operating losses are a expense to the taxpayer

The US banking industry has been rendered insolvent by the Federal Open Market Committee

There are literally dozens of banks in the US made insolvent by the policy moves of the FOMC over the past year.

The cult of ever falling interest rates goes back 50 years and spans the terms of Fed chairs back to Alan Greenspan and Paul Volcker...

Little attention is being paid to the collateral damage being done by the FOMC to the debt capital markets

As the scale of Fed open market operations grew since 2008, volatility has increased, rendering the adjustment from QE to QT problematic

Demand for risk-free collateral and liquidity is largely a function of how JPMorgan (JPM) CEO Jamie Dimon feels about risk on any given day

QE has created a gigantic interest rate mismatch across markets for banks, non-banks and other financial intermediaries including the GSEs

Net, net, the dynamics in the market are actually forcing interest rates down