FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / Blogs / Read Blog


Triple Threat Update

April 19, 2023, 07:00 AM

As I mentioned in my Triple Threat article last November, (posted in the publications listing on my LinkedIn page), the first two legs, (bank unrealized losses on investment securities and the migration of core deposits out of regional and local banks), have already occurred, and my third Triple Threat phase (contributing to more regional and local community bank liquidity challenges), has already begun -- read the Goldman Sachs article on the small business credit freeze: Smaller US Businesses and Towns are Likely to be Hit Hardest by Bank Turmoil
Importantly, this freeze has started before any possible hard landing from Fed induced rate hikes to slow the economy and intentionally inflict damage upon our critical small businesses as part of their naive strategy to reduce inflation.

As the Q1 2023 regional and community bank call reports are published by mid-May, we will see not only the empirical evidence of the updated status from unrealized investment losses on securities but, more importantly, the impact from the initial stages of the Fed induced credit freeze on small business.

As many of you in our business know, my intention in publishing this information is not to create social media panic but rather, to better anticipate and prepare for any potential adverse impact and the opportunities that will materialize from these historical events.

Our industry is strong and will flourish through these events as long as we are prepared and take the appropriate measures from prior lessons learned.

Stay tuned for more…

Editor's Note: Read Dale Kluga’s most recent Featured Blog posting:
Bank Runs, Bank Failures, Bailouts and More from ELFA’s National Funding Conference

Dale R. Kluga
Equipment Finance Founder & CPA
Dale Kluga is a Commercial Banking and Leasing Executive with over 40 years of consistent advancement in business development, credit, collections and operations. Demonstrated accomplishments include: founding and managing the commercial leasing business for LaSalle National Bank of Chicago; founding partner of Great American Leasing Company, LLC, a small ticket leasing operation; founding partner of Cobra Capital LLC (NKA Providence Equipment Finance) a SME funding, portfolio servicing and bank leasing back office company; management of a portfolio servicing business for LINC Scientific Leasing; and co-founding a suburban banking facility at the age of 29. Recognized as a visionary and persuasive negotiator in successfully conceiving strategic direction and implementation of operations that have contributed substantially to corporate financial growth.
Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.