Keys to Successfully Shed Securities

We take a look at what it takes to successfully purge underwater securities, and a new study suggests that a number of sponsor banks will exit embedded finance.

Happy Monday, Bank Slaters,

It was good to get back to a full week of work after taking some time off to reset and recalibrate. It is going to be a busy fall. I am moderating two panels at the NEXT Forum in Atlantic City, N.J., focused on M&A and hiring/compensating talent.

I am also attending the Future Proof Festival in California, the American Bankers Association’s Annual Convention in New York, and the Ole Miss Banking & Finance Symposium in Mississippi. If you’re planning to attend any of these, let me know so we can schedule some time to catch up.

Let’s talk about selling underwater securities.

I was interviewed last week by American Banker about a plan by Industry Bancshares in Texas to raise $195 million to begin purging underwater securities from its balance sheet. Specifically, I was asked if the capital would be sufficient to address the company’s issues and what factors would determine the plan’s success.