On February 8, the U.S. ** Exchange Commission's crackdown shook the entire financial market, especially the hedging world. The new rules require top hedges** to register as dealers, a decision seen as a direct blow to the basis trading model. At this moment, the New York Community Bank suffered another wave of violent sell-off, and the stock price fell as much as 11%.
This scene, like the arrival of a financial storm, instantly made people feel the uncertainty and fragility of the financial market. And the ** of the New York Community Bank has touched the nerves of the entire financial system. Since it reported a quarterly net loss on Feb. 3, its market value has evaporated by 60%, dragging down other U.S. regional banks.
This situation is reminiscent of the financial catastrophe triggered by the collapse of Silicon Valley Bank in the United States in March last year. Wall Street is once again in the grip of fears about a repeat of a similar crisis, or even a further black swan event of the U.S. debt crisis. The U.S. Treasury and the Federal Reserve also felt taken by surprise, and the challenge was not only to crack down on basis trade, but also to deal with the cracks in the financial system.
In a hearing of the House Financial Services Committee, Yellen remained neutral on proposals to raise bank capital requirements, reflecting her cautious approach to financial policy decisions. However, she also acknowledged her concerns about the crisis in the commercial real estate and banking sectors, which underscored concerns about the vulnerabilities of U.S. banks and raised warnings about the possibility of widespread credit events in the financial system.
Behind this concern is a concern about the stability of the financial system as a whole. The crash at the New York Community Bank caused panic and panic among investors, and also triggered a warning from the rating agency Moody's to downgrade its rating to "junk". This rating means that deposits are not adequately protected, and if depositors lose confidence, it can trigger greater financial turmoil and liquidity pressures.
This series of events shows that the risks in the financial system are gradually emerging, and timely measures are needed to address them. Otherwise, it will have serious repercussions on the entire financial market and economic stability. Therefore, ** and relevant departments should strengthen supervision and guide financial institutions to avoid risks to ensure the sound operation of the financial system and the protection of the interests of depositors.
To add insult to injury, the U.S. faces multiple challenges, including the national debt problem and the federal shutdown crisis. The intensification of political controversy has led to an impasse in the debt ceiling negotiations, putting US Treasuries at risk of repricing。This issue is not only causing concern for domestic and foreign investors, but also affecting the actions of global central banks, who are gradually reducing their exposure to US Treasuries.
While the US Treasury and the Federal Reserve have tried to remain optimistic, the reality is grim. The stability of the US dollar and US Treasuries is a huge challenge, and the actions of global central banks and investors will have a significant impact on this. At the same time, there have been some unexpected moves in the US financial market, such as the fact that some states have treated ** as legal tender, which has broken the pattern of the US dollar monopoly and further exacerbated the instability of the financial system.
Sisi argues that while some policymakers have tried to defuse the crisis in different ways, their efforts seem limited in the face of large debts and growing pressures. The future of the U.S. financial markets remains uncertain, and it remains to be seen whether we can meet this challenge.
Will the U.S.** be able to effectively deal with its debt problem, reach a budget deal, and maintain international investor confidence? Where will the global financial system go from here? Feel free to leave your views in the comment section.