Banks Contend with Fair Value Hangover, CRA Scrutiny

Market rates fell during the third quarter as the Fed began cutting the fed funds rate, but they've reversed higher since, likely keeping a huge pool of bank assets underwater, S&P Global Market Intelligence wrote. Banks should eventually experience an asset-repricing tailwind, but in the meantime, volatility in fair values is still causing headaches, including by suppressing M&A activity. Check out the chart of the fair value adjustment to TCE trend among public banks on page 1.

Another S&P article discusses ongoing regulatory scrutiny of banks' CRA compliance.  

------------------------------
Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
------------------------------