S7 E2: BNC: The Relationship Between Stock Prices and Bank Health, Tokenization’s Disruptive Potential, and Lots of FHLB Talk with Steven Kelly.

In this super special edition of Bank Nerd Corner, Alex and Kiah are joined by Steven Kelly, the Associate Director of Research at the Yale Program on Financial Stability. They dive into the Q1 Bank Earnings, debating exactly how much stock prices matter in determining bank health. Is there too much emphasis placed on the connection between stock prices and deposit runs at the bank? Kiah, Alex, and Steven debunk some of the biggest misconceptions about bank solvency and unravel how banks have always operated at negative equity—and why that doesn’t mean they won’t turn a profit eventually. Later, Steven shares his insights into tokenization outside of its crypto origins and explains which aspects of the underlying blockchain technology regulators are most excited about. What are the downsides and risks? And despite crypto’s widespread problems, how will blockchain technology sustain outside of it? Plus, the gang also unpacks the role of the FHLB in the banking system, discusses the explosive growth of private credit, and gets into a heated debate about the merits of… potatoes. Yep—you heard that right. Kiah has some *thoughts* about the mediocrity of potatoes. We never said they were correct though.  TruStage Payment Guard Insurance is a first-of-its-kind insurance solution built for digital lenders, designed to help you attract more borrowers, strengthen your loan portfolio and reduce time spent on collections — all with minimal tech lift needed to go live. To learn more about Payment Guard Insurance, visit https://www.trustage.com/payment-guard.   00:02:44 – Q1 Bank Earnings Released 00:18:21 – Tokenization 00:35:44 – The Federal Home Owned Bank 00:55:04 – Private Credit 01:04:32 – Go Off Kiah!  Sign up for Alex’s Fintech Takes newsletter for the latest insightful analysis on fintech trends, along with a heaping pile of pop culture references and copious footnotes. Every Monday and Thursday: https://workweek.com/brand/fintech-takes/   And for more exclusive insider content, don’t forget to check out my YouTube page.   Follow Steven:  LinkedIn: https://www.linkedin.com/in/sjkelly6/ Newsletter: https://www.withoutwarningresearch.com   Follow Kiah: LinkedIn: https://www.linkedin.com/in/khaslett/ Twitter: https://twitter.com/khaslett   Follow Alex:  YouTube: https://www.youtube.com/channel/UCJgfH47QEwbQmkQlz1V9rQA/videos LinkedIn: https://www.linkedin.com/in/alexhjohnson Twitter: https://www.twitter.com/AlexH_Johnson