The Banker Next Door

Fifth Third Bancorp has agreed to purchase Comerica for $10.9 billion. This is the largest bank M&A transaction since 2021 and one of the largest bank deals since 2009, being over $10 billion in value. This episode examines multiple articles from S&P Global Market Intelligence (subscription required). As the bank M&A market is heating up, strategies are also forming for regional banks like PNC as they try to solidify sp...

First Brands Group filed for bankruptcy with $2.3 billion missing and a criminal investigation being started. First Brands Group is the second major failure in the auto industry within the last month following the bankruptcy of Tricolor Holdings. Both companies are tied to the Private Credit Market. First Brands Group appears to have committed major fraud and, like Tricolor Holdings, is pulling in a list of major banks including Bl...

Here we go again! Another warning about Private Credit, this time from Fitch Ratings. According to their resent research, a shock to the financial system that impacts the Private Credit sector could create a large systemic problem for a wide range of investors and lenders (i.e. Hedge Funds, Private Equity Funds, and Banks). In this episode we review two articles from Fitch Ratings titled “Private Credit’s growing complexity unteste...

Companies are beginning to realize a hard truth about AI, namely that making a significant investment building flashy AI prototypes is easy, but creating measurable business value (i.e. a profit) is not! 80% of companies report using the latest GenAI and the same percentage have reported no significant gains in topline or bottom-line performance. This is according to a new report from McKinsey titled “Beyond the Hype: Unlocking Val...

While nearly all companies are investing in AI, only 1 percent of leaders call their companies “mature” on the development spectrum. This is according to a report from McKinsey titled “Superagency in the Workplace: Empowering people to unlock AI’s full potential.” The report states that the long-term AI opportunity is $4.4 trillion in added productivity growth potential, but the short-term returns are unclear (or put another way NO...

Despite investing $30-$40 billion dollars, 95% of corporations experimenting with AI have received ZERO return! This is according to a new report from MIT titled “The GenAI Divide: State of AI in Business 2025.” The outcomes are so large between buyers and builders that MIT has called this the GenAI Divide. MIT identified four patterns that define the GenAI Divide. They are 1) limited disruption, 2) enterprise paradox, 3) investmen...

AI has a deployment problem. As GenAI has experienced sky-high adoption a disconnect has grown due to a lack of bottom-line profitability. McKinsey calls this the “GenAI paradox.” Is GenAI developing according to the Gardner Hype Curve or is the technology a bust? This is what we consider in Part 1 of this 4-part series on AI profitability. This episode examines a blog post from PCBB titled “Cracking the GenAI Paradox.” In addition...

KPMG, one of the big four accounting firms in the U.S., was the audit firm for Silicon Valley Bank, Signature Bank, and First Republic Bank, the three major banks that failed in the banking crisis of 2023. A new report from The Senate Permanent Subcommittee on Investigations examined KPMG’s role in the bank failures. Does KPMG bear any responsibility in the failure of these banks? This episode examines two articles one from Banking...

Bank Director’s 2025 Technology Survey examines decision-making, data strategies, and how banks are using artificial intelligence. Banks are continuing to grapple with data, AI maturity, and technology costs. This episode examines an article from Bank Director titled “2025 Technology Survey: Banks Grapple with data, AI maturity.” Links to both the article and report are included below. 

Link: 2025 Technology Survey: Banks Grapple W...

Cross-border payments reforms continue to take shape. It is important for community banks to understand opportunities and significant changes in this space. The G20 roadmap continues to take shape around three key areas. 1) Payment system interoperability and extension, 2) Legal, regulatory, and supervisory frameworks, and 3) Cross-border data exchange and message standards. This episode examines an article from Independent Banker ...

This episode examines the results from the OCC 2Q 2025 Bank Trading and Derivatives Activities report for banks in the U.S. Bank trading revenue increased $16.6 billion in the 2nd quarter. Derivative notional amounts increased by $13.1 trillion to $223.5 trillion.  Links to the press release and report are included below.

Link: OCC Reports Second Quarter 2025 Bank Trading Revenue | OCC

Link: Quarterly Derivatives Report Second Quar...

A new report from NAEP on public school performance in the U.S. shows catastrophic results with 1 in 5 Americans functionally illiterate! The public school system in the U.S. has consumed trillions of dollars only to deliver worse results. This episode examines two articles from the Epoch Times (subscription required) title “Latest education scores reveal failure of regulatory accountability and DEI” and “She couldn’t read her own ...

With the passing of The Genius Act and other potential legislation on the way, Banks will soon have a full regulatory framework around Stablecoins. This new legislation has brought expectations around Stablecoins, with some people seeing major change while others think not much will happen. In this episode we consider myth versus fact by reviewing an article from Bank Director titled “Stablecoins and Banking: Separating Fact from F...

National and regional banks have been pulling back on Multifamily lending. Does that create an opportunity for Community Banks? The pullback in lending by the largest banks is due, in part, to higher interest rates on existing debt and tighter liquidity. We consider some tips for Community Banks that could lead to multifamily lending success. This episode reviews a blog post from PCBB titled “Can you fill the Multifamily Lending Ga...