What do government stimulus, risk aversion, and job insecurity all have in common? They all played significant parts in deposit growth at our nation’s banks during the pandemic. Between year-end 2019 and March 31, 2022, bank deposits grew 37% (from…
Author: BauerFinancial (page 4)
Finding Balance Between Efficiency and Humanity
In case you missed it, on Friday, January 20th, several news outlets reported that Capital One Financial would be eliminating more than 1,100 tech positions. Interestingly, the systems designed by these workers, and intended to increase efficiency, are now being…
What is in Your Wallet Can Cost a Small Fortune
According to WalletHub, the average credit card rate for new offers is now over 21%. Store Card rates are trending even higher, with some as high as 30%! Yet, after paying down credit cards during the worst of COVID, consumers…
The Merger Floodgates Have Opened
Last May (JRN 39:18) we wrote an article entitled, ‘In the Words of Nancy Reagan, “Just Say No.”’ In that article, we reflected on the fact that some of our nation’s largest banks had been allowed to keep acquiring smaller…
Residential Real Estate Woes, It’s Déjà vu Again
Residential mortgage loans grew by 9.6% ($214 billion) at the nation’s banks during the 12 months ending September 30, 2022. In addition, the quality of these single family mortgage loans improved significantly over the year. The non-current rate for 1-4…
Scrutiny or Not, Big Bank Merger Approved
The long awaited acquisition of 4-Star MUFG Union Bank, N.A. (also known simply as Union Bank) by U.S. Bancorp finally closed in December. The combination of the two banks (Union Bank into 4-Star U.S. Bank, N.A.) will still take several…
4 Decades in, We’re Looking back to the Future
Welcome Back! As Jumbo Rate News enters its 40th year in publication, we thought it would be a good time to look back to how we got here. Let’s set the stage: The year was 1983; Ronald Reagan was President;…
Naughty or Nice? You Decide.
Almost half of all bank service fee income earned by the nation’s banks during the first three quarters of 2022 was charged by three of the largest (pie chart). That makes a good headline, but that doesn’t begin to tell…
Happy Holidays… New Credit Union Star-Ratings
Jerome Powell may be the grinch trying to steal Christmas this year with the help of the Fed’s Open Market Committee. They raised borrowing costs another ½ point this week, making those credit card bills just a little more difficult…
When it Comes to PPP Loans, Not All is Forgiven
It was April 3, 2020, over two and a half years ago, that the first round of Paycheck Protection Plan (PPP) loans began rolling out. By September 30th of that year, U.S. banks had issued more than 4.5 million PPP…