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Press Clips2021-05-24T20:16:05-04:00

Marketplace, Wednesday, December 7, 2022

Host David Brancaccio talks to Karen Petrou of Federal Financial Analytics stops in to talk about the effects of the Georgia runoff results as well as economic inequality. We check in on the grim revenue projections for movie theaters. Listen here:  

December 7th, 2022|Categories: Press Clips|

NPR, Marketplace Morning Report: Tuesday, November 29, 2022

Your move, Federal Reserve Host Sabri Ben-Achour Today is the eve of Fed Chair Jerome Powell's speech, where he's expected to lay out the current economic landscape and offer hints as to what the Fed might do with it in a couple of weeks. For more, we talk with Karen Petrou of Federal Financial Analytics. Listen here:

November 29th, 2022|Categories: Press Clips|

American Banker Podcast: Tuesday, November 22, 2022

'Democrats lost the house. I'm less convinced that Republicans won it.' Host John Heltman Welcome to the American Banker Podcast. I'm John Heltman. As you probably heard, we had an election a few weeks ago and as you also may have heard the outcome, at least in terms of which parties control which chambers of Congress has finally been determined, Democrats have retained control of the Senate and could even pick up a seat depending on the outcome of the runoff election in Georgia next month, Republicans retook control of the House of Representatives, albeit with a much narrower margin than was widely anticipated. And coincidentally, just as the voting was taking place across the country, crypto exchange, FTX began its downward spiral towards bankruptcy, a development that has broad political implications for the next Congress and for regulators' efforts to establish rules for the crypto verse to live by, to [...]

November 22nd, 2022|Categories: Press Clips|

American Banker, November 14, 2022

For the Fed, less bad news is good news By Kyle Campbell After a year of scrutiny and criticism, the Federal Reserve had a good week — or, at least, a week that was much better than it could have been. Two major developments last week bolstered the central bank's credibility in setting monetary as well as bank regulatory policy at a time when it is facing heavy scrutiny on both fronts..."It could have been a very bad week, but the fact that there weren't crises is a pretty faint measure of success," said Karen Petrou, managing partner of Federal Financial Analytics. The positives of last week's episodes also come with significant caveats.  

November 14th, 2022|Categories: Press Clips|

American Banker, Monday, October 24, 2022

A reckoning could be coming over Fed's payments to banks By Karen Petrou Congress will do nothing about anything until the midterm election seals each member's fate. Thus, I expect nothing to come from Congress in 2022 responding to the Federal Reserve's sudden turn for the financial worst. However, when Congress again comes to thinking about the Fed, it will not go unnoticed, despite all the acrimony about monetary-policy miscues, that taxpayers are in some ways now far more clearly subsidizing payments to banks, money market funds and other financial companies holding deposits with the central bank or using its standing market windows. The last time Congress thought about interest rates on reserves (IRR), more than a few members wanted it back. Given that these payments are now at what seems direct taxpayer cost, they'll have a lot of new friends in the next Congress unless someone quickly shows why [...]

October 24th, 2022|Categories: Press Clips|

The Hill, Friday, October 21, 2022

It’s left vs. Federal Reserve on interest rates hikes By Sylvan Lane Progressive Democrats are ripping the Federal Reserve over deepening concerns the central bank could drive the U.S. into recession amid sky-high inflation not seen in four decades. Top liberal lawmakers are urging the Fed to stop hiking interest rates and slowing the U.S. economy, insisting that it’ll do nothing to curb inflation while plunging millions into joblessness.... “The Fed now has few choices but to make everything worse,” said Karen Shaw Petrou, managing partner of research firm Federal Financial Analytics, in a Thursday interview.  

October 21st, 2022|Categories: Press Clips|

American Banker, Tuesday, October 18, 2022

'Everything's on the table' for Fed, FDIC as they weigh resolution reform By Kyle Campbell Bank regulators have sparked debate among policy specialists about what requirements should be imposed on large banks to make sure they can fail without harming the broader financial system. Last week, the Federal Reserve and the Federal Deposit Insurance Corp. issued an advance notice of proposed rulemaking on large-bank resolution standards. In it, the agencies asked for public input on a dozen subjects relating to potential requirements ranging from long-term, loss-absorbing debt to plans for key assets to be liquidated individually......"The [Insured Depository Institutions] have gotten so big that the traditional approach the FDIC has to deal with them is, at best, creaky and more likely not viable under stress," said Karen Petrou, founder and managing partner of Federal Financial Analytics. The resolution plan requirements currently imposed on large banks have made them more resilient [...]

October 18th, 2022|Categories: Press Clips|

Marketplace, Tuesday, October 18, 2022

Why banks are setting aside cash to cover bad loans By Justin Ho There’s a special feeling you get during this time of year. The air gets cooler, the leaves change color, and companies issue their latest quarterly reports. Yes, we are in the middle of earnings season. And lately, we’ve been hearing from a number of companies that are preparing for a chillier economy. Call it hoarding their acorns....Karen Petrou at Federal Financial Analytics said banks are essentially pulling out their sweaters ahead of the winter. “We might not need them, maybe the winter will be warmer than we think, but we have the sweaters, we bought the sweaters, we’re ready,” she said. And if there’s a mild recession, or no recession, Petrou said it’s no big deal to put those sweaters back.  

October 18th, 2022|Categories: Press Clips|

American Banker, Wednesday, October 4, 2022

Fed, FDIC plan for living wills sparks debate about best approach By Kyle Campbell New guidelines are coming for how large regional banks should prepare themselves for bankruptcies, but some policy experts are already questioning if they will go far enough. The Federal Reserve and the Federal Deposit Insurance Corp. issued a joint statement Friday that they will provide guidance on resolution planning for banks that have at least $250 billion in assets but do not qualify as too-big-to-fail....Karen Petrou, co-founder of Federal Financial Analytics, said it is difficult to read too much into what the Fed and FDIC have in mind about specific changes to their resolution plan policies. She said it is likely that Category II and Category III banks will face more scrutiny than they currently do, albeit not as much as the G-SIBs, but little is clear beyond that. Overall, Petrou said she supports a resolution [...]

October 4th, 2022|Categories: Press Clips|Tags: , , |

American Banker, Monday, September 12, 2022

Progressives 'cautiously optimistic' as Barr agenda comes into focus By Kyle Campbell Changes are coming to the Federal Reserve's regulatory and supervision policy, just not the type of sweeping reform some had advocated and others had feared. Last week, Michael Barr gave his first speech since being sworn in as the Fed's new vice chair for supervision in July. He outlined a different set of priorities from his predecessor, Randal Quarles, but did not deliver the full scale rebuke called for by certain progressive groups at the onset of the Biden administration...Karen Petrou, co-founder and managing partner of Federal Financial Analytics, said she was encouraged by the additional detail Barr provided about his vision for a holistic capital review. He mentioned the concept briefly during his confirmation hearing in front of the Senate Banking Committee earlier this summer. Petrou said last week's remarks demonstrated Barr's initial statement was not an [...]

September 12th, 2022|Categories: Press Clips|
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