calculang issue #5: a browser extension to facilitate transparency for the numbers we read on the web: in our #banking portals, #news websites and more like #Mastodon discourse, ++
I was watching stuff on the CBC Gem app over the weekend and this forced me to watch ads. Like TV-style ads. This is something I haven't seen in probably years. Painful.
CDIC has been advertising that we shouldn't worry about American banking drama spilling over here because Canada has deposit insurance.
Deposit insurance only covers up to a max of $100k. This includes your investments. If scat ever hit the fan, I hope you weren't planning on retiring on those RRSPs.
does anyone know of any description of the privacy characteristics of ACH bank transfers? do ACH transfers leave customer-level data with clearinghouses or other parties outside of the participating banks? how do the privacy characteristics of ACH compare with those of something like the upcoming FedNow?
(thanks @chrisp for posing this question, to which i'd given oddly little thought.)
Mike's bio ages ago used to be "purveyor of fine data visualizations" or something—he's not a finance bro so I cannot be too mad that the graph only starts at 2001. But having read Christopher Leonard's Lords of Easy Money (hat tip @ranjan, highly recommended!), I knew a lot of juicy bank failures happened in the 1980s through the early 1990s, for the same reason banks are failing now: the Fed kept interest rates too low for too long, encouraging speculative excesses. I wanted to extend Mike's chart back a few decades.
The FDIC doesn't seem to list individual failed banks pre-2001 alas, but I did disaggregate their annual tables of "total number of failed banks" and "total assets of failed banks" and remixed Matt's original chart: attached is with data back to 1980 and adjusted for inflation (remixable at https://observablehq.com/d/3505b01ab41a7242 viva open data!)
I think it was right to want to go back to the 1980s oil boom and savings-and-loan crises, because just looking at Mike's original plot, you might be forgiven for thinking "oh some big shit went down in 2008 but we've had three big shits go down now, whoa whoa". The 1980s and early 90s were a continuous series of bank failures, wave after wave of them. If we're at the start of a crisis like the 80s, then holy shit, there's going to be a lot more pain than 2008! #banking#finance
Are US bank failures going the way of our mass shootings?
"Monday’s shutdown marks the nation’s second-largest bank failure — First Republic Bank had nearly $230 billion in assets last month — eclipsing the Silicon Valley Bank collapse."
THREE OF THE FOUR LARGEST BANK FAILURES IN US HISTORY HAVE TAKEN PLACE OVER THE LAST 2 MONTHS.
The failure of #FirstRepublic is just the latest case where bank executives had every incentive to value short-term profits instead of risk management.
The fact my deposit is being held and I am probably going to be charged overdraft fees for the two days I am waiting for the deposit to clear makes me want to die.