Adrian Docherty

@lucydochertyxx @fwmarqix Let’s tell stories! X

I lived in Japan for a year. Most of my experiences were exhausting in ways I’d rather not get into, but this one still makes me laugh. I was on the train in Osaka, minding my own business, when I noticed a group of school kids a few seats down. They were whispering, glancing at me, then whispering again. They kept passing a folded piece of paper between them as if they were planning something top secret. I watched this go on for two stops. Finally, one of the kids was pushed forward by the others. He walked over to me slowly, like he was approaching a wild animal that might bite. He stopped right in front of me, bowed politely, and held out the folded paper with both hands. I opened it. Inside was a handwritten note in careful English: “Hello. We think you are a very cool person. We are practicing our English. We hope this note is correct. Please give us a score.” At the bottom, they had drawn a literal grading box, out of ten. I looked up. Seven pairs of eyes were staring at me as if their entire semester depended on my response. I pulled out a pen, wrote “10/10” in the box, and added a note: “Perfect English. Well done.” The boy carried it back to the group. They read it together… and absolutely lost their minds. High-fives, jumping, and one kid even pumped his fist in the air. Their teacher, who had been pretending not to watch from the end of the car, was biting her lip, trying hard not to smile. I rode the rest of the journey grinning to myself. That’s the Japan I always remember.

@jeuasommenulle Ironically look at the spam ad that appears for me under your post 🤣

How crazy it is that almost 20 years after the story broke (jeeez time flies 😳) HSBC is still booking a 1.1bn$ provision this quarter on Madoff !?

@jeuasommenulle Low NIM is good if you’re a mutual, which they mostly are in FR and DE

French and German banks still look absolutely horrible on their net interest margins

@jeuasommenulle @aepau2 defence

@aepau2 they did create a smaller defense fund

10 years of European Commission macro imbalances reports couldn't achieve what Trump did in one meeting with Z I'm not sure if we should laugh or weep

@jeuasommenulle More importantly, is that proforma or post management actions? (see EBA impact study for the EU GSIB with +25% increase 😳)

I had missed this gem from the Santander CFO when asked about Basel4 / CRR3 impact on capital ratios. There's fully loaded (which everyone is using for communication) and fully fully fully fully fully loaded, which apparently is way more

@BAsupport_com Do you think I’m a fool?

I suspect @British_Airways Executive Club Silver call centre is cheating. Stranded in Florence overnight due to fog and called for help to rebook via Pisa, got dumped 5 TIMES bc they “couldn’t hear me” when they got back from putting me on hold. calling this out as bs. +it hurts

@British_Airways Just did so

@what5updoc We're really sorry to hear this, Adrian, especially as a Silver member of our Executive Club. Can you please DM us your booking reference and full name. We may need to ask further security questions. Chris

@SNB_BNS @dsquareddigest Yeah and I cycled to work on my new bike. Hardly remarkable. (Though SNB notes that wryly in footnote 9)

New SNB Economic Note: Rebecca Gerosa, Oliver Gloede and Philipp Müller describe how the SNB issued digital SNB Bills settled in wholesale central bank digital currency (wCBDC) on an infrastructure based on distributed ledger technology (DLT). snb.ch/en/publication…

@Christonab1ke The very *essence* of the latest standard is less risk-sensitive, by overriding in many areas the statistical models that Basel II introduced. The link between risk and regulatory capital is weakened

@what5updoc Which part of Basel III is less risk sensitive?

But.. but… what if the reduced risk-sensitivity of the new standards means that the next crisis is actually exacerbated?

@khaslett I think your question contains the answer…

as you know, branch locations also comes up in competitive analysis in bank deals, and i really do wonder what data agencies like the DOJ have available to actually understand market activity/penetration

This DOJ redlining charge against Citadel FCU continues a trend we've seen in these cases that have STRONG whiffs of REMA (reasonably expected market area). If I had to describe REMA, I would say it's a crime of omission, not of commission: justice.gov/opa/pr/justice…

@odtorson Nice thread but I disagree with this specific point. Writing off a hybrid Tier 1 bond does not create regulatory capital (Tier 1 capital before = Tier 1 capital after), it just transfers wealth from noteholders to shareholders.

Tier 1 capital is GOING concern capital that can be written down in times of financial distress, thereby creating loss taking capacity and therefore regulatory capital

A brief history of Cocos and other AT1 instruments — and how come you can write them down when there is still equity left?

@MaiaBug2010 Not sure the service you’re describing is a legal necessity. Our kids have travelled several times as unaccompanied minors and no special arrangements applied, also friends visiting from abroad have sent their kids unaccompanied. The law is vague

I have no idea what this is about, but I’m guessing that Allsopp was sending her son to a family member of a friend. If that’s the case you can travel as an unaccompanied minor from one country to another, you’re dropped off at the airport WITH A MEMBER OF STAFF and then allocated your seat, your with the staff member till you board the plane. 1/

@NunyaBisnis9 Not sure that’s what the law says but then I’m not a KC, you’ll no doubt be able to point me to your sources?

Kirstie Allsopp's no different to any other parent. Her kid's a minor under the eyes of the law, hence they should only travel abroad with an adult as a chaperone or a relative.

@PaulJDavies @dsquareddigest @yorksranter @IronEconomist Negative stamp duty for downsizing, that’s the answer

@dsquareddigest @yorksranter @IronEconomist Could we incentivise instead by idk allowing tax free transfers of sales proceeds into pension pots/annuities? And/or allowing an inheritance tax holiday on sales proceeds lump sums?

the way I would summarise this is "deregulation and YIMBY-only approaches tend to give you a mix of Deano estates, student flats and conversions; if you want city family apartments you are going to have to get much more involved in building them"

@jeuasommenulle Basically, ECB wants to supervise a Banking Union oligopoly like Canada and Australia

To me the most interesting thing to watch will be the ECB's view. Will they remain consistent with their view that consolidation is needed for a stronger banking system or will they fall in the political trap of "hostile is bad"

@Gatwick_Airport “Some” passengers “may” be delayed? You kidding?

@Christonab1ke @khaslett Yes, disappointing when accounting drives rather than reflects 😩 Though tbf SVB had IRRBB EVE disclosure

@what5updoc @khaslett Indeed! But still based on economic and not accounting judgements - at least in theory - unless a bank is playing naughty and trying to conceal risk (ahem, SVB).

Another set of academics discovers historic and near-universal truth: banks do not use swaps and derivates to hedge their interest rate risk. This is so widely known that I would be interested in a paper looking at a bank w/ an extensive hedge strategy. ft.com/content/2c9eb4…

@Christonab1ke @khaslett …using behavioural assumptions on maturity, it must be said. Indeed, the “structural hedge” is a bet on behaviour, not contractual term

@khaslett It depends on the country. In the UK, banks have very limited duration risk because they externally hedge residual mismatch. This is a direct consequence of the prudential framework, which looks through accounting rules to the underlying exposure, which it indeed should.