The Gallatin Group retweetledi
The Gallatin Group
4.1K posts
The Gallatin Group
@TheGallatin
An independent advisory firm that works with investment firms, banks, and technology companies.
Manhattan, NY Katılım Ocak 2017
3.3K Takip Edilen1.7K Takipçiler
The Gallatin Group retweetledi
BANK FAILURE: Community Bank and Trust - West Georgia, LaGrange, Georgia
The Gallatin Risk Monitor identified this institution for failure Q1, 2026.
FDIC@FDICgov
Community Bank & Trust – West Georgia was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. Anchor Bank will assume substantially all insured deposits and acquire certain assets of the failed institution. fdic.gov/news/press-rel…
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The Gallatin Group retweetledi
.@TheGallatin research indicates it is unlikely that Congress will raise deposit insurance limits absent a severe economic downturn or systemic crisis.
Congress raises deposit insurance in response to a crisis, or to adjust for inflation using the PCE Chain-Type Price Index.
Norbert J. Michel@norbertjmichel
I feel like this is sort of stuck on repeat - but raising the FDIC insurance cap is a solution in search of a problem. Main Street depositors do not benefit from raising the cap, and Congress should finally let this idea die.
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@Barchart For more, visit:
gallatin-risk-monitor.pages.dev
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/END
The risk isn’t “insurance.”
The risk is that the market has parked opaque private credit inside institutions that are still treated as “safe.”
When that confidence breaks, it won’t break quietly.
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/3
This is how a contained insurance problem becomes a systemic funding problem, and is exactly the type of embedded risk the Gallatin Risk Monitor was built to surface before it becomes front-page news.
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/2 PE-backed insurers are connected to banks via multiple channels:
•Banks w/ CRE + private-credit exposure;
•Banks holding BDC paper or lending to PE-backed companies in the ecosystem, or otherwise financing the ecosystem; and,
•Deposit flight once confidence cracks.
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This is a timely thread highlighting a risk pocket the market is still sleepwalking through.
If this unwinds, the stress won’t stay inside insurance.
It will spill directly into the banking system.
Here’s why:
Whitney Baker@TotemMacro
In case you’re curious where the losses are, the PE industry has been acquiring and then raiding the floats of c.10% of US life insurance assets. They’ve been filling them with private credit and direct lending, all using the same private ratings agency to misclassify the loans.
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/1
When Metropolitan Capital Bank failed last week, the Gallatin Risk Monitor had them graded “F.”
However, knowing the grade alone isn't enough.
You need to see WHERE the cracks are forming, and which direction they're moving.
So we’ve implemented a few additional features
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/5
Each bank now has a visual component breakdown, with five bars showing capital, asset quality, earnings, liquidity, and sensitivity at a glance.
Green is healthy. Red is not.
When you see three red bars and two trending down, you don't need a PhD to interpret the signal.
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/4
One new feature is the Watchlist. There are currently 146 banks right now with 2+ declining components across consecutive quarters.
These are the institutions where problems are compounding.
Not a one-off bad quarter, but sustained deterioration across areas simultaneously
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The Gallatin Group retweetledi
To address these concerns we built The Gallatin Risk Monitor™ using proprietary analysis.
This tool aggregates and grades risk across five quantitative dimensions regulators already collect:
• Capital
• Asset quality
• Liquidity
• Earnings
• Sensitivity
/6
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Metropolitan Capital Bank & Trust was closed by its primary chartering authority.
The Gallatin Risk Monitor graded this bank “F,” with failing marks in Capital and Asset Quality.
Composite score: 20.8 out of 100.
Capital: F
Asset Quality: F
Earnings: D
Liquidity: C
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The Gallatin Group retweetledi
Today we launched The Gallatin Risk Monitor,™ a live, independent scorecard that grades U.S. financial institutions through proprietary analysis using publicly available regulatory data:
tinyurl.com/The-Gallatin-R…
/1
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The Gallatin Group retweetledi
Today we launched The Gallatin Risk Monitor,™ a live, independent scorecard that grades U.S. financial institutions through proprietary analysis using publicly available regulatory data.
/1
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