An Embarrassment of Riches

Published on
January 27th, 2020
Duration
36 minutes

Up Next

Related Videos

Juliette Declercq’s Biggest Macro Trends
The Expert View ·

Juliette Declercq’s Biggest Macro Trends

The Dollar Endgame
The Expert View ·

The Dollar Endgame

Volatility Madness and the Fed Put
The Expert View ·

Volatility Madness and the Fed Put

Banking on Bitcoin
The Expert View ·

Banking on Bitcoin

Active vs. Passive SAAS Arbitrage
The Expert View ·

Active vs. Passive SAAS Arbitrage

How Will Urban Decline Affect Real Estate?
The Expert View ·

How Will Urban Decline Affect Real Estate?

George Goncalves: Why the Fed Wants to Avoid Yield Curve Control
The Expert View ·

George Goncalves: Why the Fed Wants to Avoid Yield Curve Control

Bitcoin and Time: The Economics of Absolute Scarcity
The Expert View ·

Bitcoin and Time: The Economics of Absolute Scarcity

Risk-On or Risk-Off: Preparing For the Next Market Crash
The Expert View ·

Risk-On or Risk-Off: Preparing For the Next Market Crash

How “Economic Scarring” and Low Rates Have Ravaged Quant Investors
The Expert View ·

How “Economic Scarring” and Low Rates Have Ravaged Quant Investors

Italy: Too Big to Save?
The Expert View ·

Italy: Too Big to Save?

Lyn Alden: Macro Maelstrom
The Expert View ·

Lyn Alden: Macro Maelstrom

The Sovereign Debt Trade of the Decade
The Expert View ·

The Sovereign Debt Trade of the Decade

The Grand Supercycle Correction
The Expert View ·

The Grand Supercycle Correction

Infinity Phase 3: The Post-COVID Paradigm
The Expert View ·

Infinity Phase 3: The Post-COVID Paradigm

Listen to the Bond Market: Major Risks Remain
The Expert View ·

Listen to the Bond Market: Major Risks Remain

Finding Opportunity in Junior Miners
The Expert View ·

Finding Opportunity in Junior Miners

What’s Next for the Dollar?
The Expert View ·

What’s Next for the Dollar?

Oil and Energy: Updating a Sector in Flux
The Expert View ·

Oil and Energy: Updating a Sector in Flux

“Macro is Back, Baby”
The Expert View ·

“Macro is Back, Baby”
17

An Embarrassment of Riches

The Expert View ·
Featuring Chris Whalen

Published on: January 27th, 2020 • Duration: 36 minutes

Chris Whalen, chairman of Whalen Global Advisors, returns to Real Vision to analyze the challenges and opportunities presented by complexities in the banking sector. He argues that the compression of banks’ “spread” – the difference between the lending and borrowing rates – is pushing banks to rely on riskier income streams. Whalen is a firm believer in the earning power of high-margin businesses such as consumer finance and mortgage lending. After shedding light on the more arcane topics of high finance, Whalen discusses a few banks stocks he likes, as well as one he thinks is so inefficient at deploying capital that it “have no clear reason to exist.” Filmed on January 21, 2020, in New York.

Comments

Transcript

  • WP
    William P.
    3 February 2020 @ 03:30
    0 0
    Great analysis!
  • NR
    Nelson R.
    1 February 2020 @ 15:26
    1 0
    Chris is brilliant, great video.
  • SG
    Sven G.
    31 January 2020 @ 14:06
    1 0
    Love his analysis and pushback on regulators! what he says about FSOC was hilarious. :D
  • JS
    Jason S.
    31 January 2020 @ 07:09
    0 0
    Outstanding
  • FB
    Floyd B.
    29 January 2020 @ 22:39
    0 1
    Excellent once again. The comment relating to the non-bank mortgage companies was particularly useful I was under the wrong impression regarding these organization. This is why I subscribe to RV to learn and clarify what might be incorrect main stream views. Why was the particular interview provided free,I feel slighted as a subscriber.
  • SS
    Sam S.
    27 January 2020 @ 14:40
    8 0
    Mr. Whalen, can you comment on the "scary as hell" Dodd Frank "bail-in" regulations in the USA? How does this work in conjunction with FDIC limits per account or per person regulations? Which kicks in first? Are Bail-In's a function of not enough liquidity in the FDIC pool of funds? Hard to imagine cash being confiscated in a crisis and whether our deposits are an asset of the banks or a liability? Kindest Regards.
    • DS
      David S.
      27 January 2020 @ 21:33
      2 0
      Sam S. P. - Great comment. What accounts are subject to bail-ins? DLS
    • SS
      Sam S.
      27 January 2020 @ 22:40
      2 0
      Thank You David S.! I hope he responds. Yes, the details surrounding accounts, limits are very important.
    • DS
      David S.
      29 January 2020 @ 15:58
      0 0
      I did see an investopedia reference that only bail-ins above the $250,000 FDIC limits are allowed. DLS
  • FD
    Franbcois D.
    28 January 2020 @ 13:46
    13 0
    Thsi is why I like RV so much. Sure getting an interview with Mike Green or Raoul is always great, but its these guests that for me at least were unknown and just make me rethink how to see a sector. I learned a lot from this interview especially on the funding side and it allowed me to have a new perspective when analyzing banks. Thanks again RV for finding these guests.
  • KS
    Ken S.
    28 January 2020 @ 04:35
    5 0
    I'm so angry right now because I can only 'like' and cannot 'love' this video. RV, plz make reaccs like fb so I can go back and revise my reacc. This guy is a straight shooter. Most of the real content is in the subtext. Watch. Do not merely listen to this one.
  • SH
    Scott H.
    28 January 2020 @ 01:59
    0 0
    Simply superb. Thanks, gents.
  • BB
    Bob B.
    28 January 2020 @ 00:15
    2 0
    With double digit profits from credit cards, baits the question whether that s/b regulated. Forcing rates higher for other business activities seems more balanced than striping money from financially vulnerable. Payday loans are often regulated - why not credit card rates? 5 point net of expenses would still reduce some of the burden.
  • TD
    Thomas D.
    27 January 2020 @ 19:00
    7 0
    Outstanding guest. Very articulate.
  • WM
    William M.
    27 January 2020 @ 18:25
    7 0
    Excellent, clear presentation by Chris. Thank you.
  • LA
    Linda A.
    27 January 2020 @ 16:35
    10 0
    Chris Walen is the best banking analyst hands down! Thank u for having Chris on -he is a banking gem!
  • SS
    Sam S.
    27 January 2020 @ 14:02
    15 0
    Absolutely one of the best finance banking guests on RV! Clear, concise and spoken in a simple to understand way that begs for more. Mr. Whalen is terrific! Question for Mr. Whalen: In researching banks and commercial lenders, for investing and/or doing business with, are there site(s) that provides a real unbiased rating system? How about Whalen Global Advisors?

Chapters

  1. 00:02:11
    What did you think of the banking sector's earnings last quarter?
  2. 00:03:46
    Have banks seen any changes in their net interest spread?
  3. 00:05:14
    Do you see any risks on the horizon?
  4. 00:09:34
    What about mergers & acquisitions?
  5. 00:13:24
    How is the credit card sector faring?
  6. 00:16:20
    How do you compare the credit card space with residential mortgages?
  7. 00:18:15
    Do non-bank commercial lenders pose a systemic risk to the mortgage market?
  8. 00:21:22
    What about commercial lending?
  9. 00:22:58
    Tell us about the Financial Stability Oversight Committee
  10. 00:25:47
    Why is Deutsche Bank a problem?
  11. 00:28:01
    Are Deutsche's problems emblematic of a wider European bank malaise?
  12. 00:29:50
    What regions offer the best returns for banking?
  13. 00:31:42
    What about Argentina and Uruguay?
  14. 00:33:09
    Can you elaborate on the prospect of an Argentine currency board?