The Banker Next Door

Can Kevin Warsh fix the problems at the Federal Reserve and the U.S. economy?

Kevin Warsh was just named by President Trump to be the next Chairman of the Federal Reserve. Mr. Warsh has a monumental task before him in not only fixing the mistakes of the Federal Reserve but trying to fix the problems that have metastasized in the U.S. economy. Can Mr. Warsh fix the misallocation of capital that was caused by the Fed’s zero interest rate policy? The persistent inflation? The ‘goosing’ of the riskiest and least-productive assets? And perhaps most importantly, the addiction to debt in the U.S.? This episode reviewed an article from The Epoch Times (subscription required) titled “Will the New Fed Chair Fix the Money?” by Jeffrey Tucker.

How are Neobanks doing?

Neobanks are currently facing some of the same difficulties as banks. The problems include cooling funding, rising customer acquisition costs, and investors increasingly focused on profits. As the hypergrowth for Neobanks has cooled, a small group has emerged as leaders. These Neobanks include Revolut, Monzo, and Chime. What can banks learn from this changing landscape? The blog post examined in this episode offers five lessons. They include 1) digital convenience always wins customers, 2) Profitability is hard, 3) trust and retention still favor relationship banking, 4) reliable SMB tools are becoming table stakes, and 5) this is not a signal to slow digital investments. Finally, we review a list of the top 10 Neobanks in the U.S. and globally.  This episode reviewed a blog post from PCBB titled “Lessons for CFIs from a maturing Neobank market.” A link to the blog post is included below.
Link: Lessons for CFIs from a Maturing Neobank Market

Metropolitan Capital Bank & Trust becomes first bank failure of 2026!

Metropolitan Capital Bank & Trust in Chicago is the first bank failure of 2026. On Friday, January 30th the Illinois Department of Financial and Professional Regulation (IDFPR) closed the single-branch $261 million asset bank. The FDIC was appointed as receiver and sold most of the assets and liabilities of the bank to Detroit based First Independence Bank. IDFPR stated that Metropolitan Capital was closed due to unsafe and unsound conditions and an impaired capital position. This failure is estimated to result in a $19.7 million cost to the FDIC Insurance Fund. This episode also looked at two credit unions that were placed into conservatorship. This episode examined two articles from S&P Global (subscription required) and an article from Banking Dive titled “Chicago bank first to fail in 2026.” A link to the Banking Dive article is included below.  
Link: Chicago bank first to fail in 2026 | Banking Dive

Santander acquires Webster Financial and other M&A activity

The M&A market for banks continues to heat up with several recently announced transactions. Santander is buying Webster Financial for $12.3 billion. Columbia Bank is buying Northfield Bank for $597 million. Stock Yards Bancorp is buying Field & Main Bancorp for $105 million. Prosperity Bancshares is buying Stellar Bancorp for $2 billion. There have been 14 deals announced to start 2026 and median deal value-to-tangible common equity has increased to 191.9%. How do investment bankers feel about the current market? Should banks go all in on M&A? What do acquirers want? This episode reviewed multiple articles from S&P Global, Banking Dive, and Bank Director.  

Is the Crypto Winter of 2026 upon us? (Crypto Series Part XXXV)

This is part 35 of the crypto series. Is a new Crypto Winter upon us? Bitcoin has witnessed its worst drop in three years, dropping to as low as 60,000. Some market analysts believe Bitcoin could drop as low as 40,000 before it stabilizes. Why is Bitcoin falling? It could be a combination of things. Profit taking, short selling, and the uncertainty around crypto legislation. We also consider crypto holding companies and where crypto legislation currently stands. Michael Saylor’s company Strategy is in serious trouble as the price drop of Bitcoin falls below their average purchase price of $76,000. Treasury Secretary Scott Bessent delivered remarks last week in which he stated that he is a champion of community banks and wants to avoid any deposit volatility resulting from digital assets market structure legislation. This episode reviewed multiple articles from The Wall Street Journal, CNBC, and Investopedia.  

The rise of the invitation-only stock market as the billionaire population surges!

The number of stocks for people to invest in has been shrinking since the 1990s. However, a new market was risen for the ultrawealthy, wherein they can invest in private companies through invitation-only transactions. This is before a company goes through an initial public offering (IPO). Is this creating a two-tier system? This is happening at a time when the world’s billionaire population is surging. According to UBS, global billionaire wealth hit a record $15.8 trillion in 2025. This episode reviewed articles from The Wall Street Journal and The Epoch Times.   

BND: Strategy Room 2-7-2026

The Banker Next Door (BND) weekly live stream show. Strategy Room provides financial news, commentary, top stories in the business world, economic indicators, and all things banking for the week.

While 401(k)s are making millionaires, there are changes coming!

As 401(k)s are creating a generation of ‘moderate millionaires,’ Wall Street is seeking to add new investment options. Some of these options include private assets, alternative assets, crypto, and annuities. Are these investments a good idea? Are these investment products safe for everyday consumers? It is concerning that some of these investments can be difficult to get out of and present higher levels of risk. This episode reviewed articles from The Wall Street Journal and The Epoch Times.   

Why are businesses fleeing Democrat run cities?

Businesses continue to flee Democrat run cities such as San Jose, Chicago, and New York due to high taxes and regulation. The trend is now irrefutable. Companies continue to head into states such as Texas and Florida with lower taxes and less burdensome regulations. Democrat cities are all in a ‘doom loop’ as the politicians will continue to increase taxes and regulation driving out business, which will further erode the tax base, increase deficits, and burden the remaining residents. This episode reviewed articles from Fox Business, CNBC, and The Epoch Times.

The rise of Prediction Markets!

Polymarket and Kalshi have exploded onto the scene as ‘Prediction Markets’. These companies have found a way through a legal loophole to compete against DraftKings and FanDuel, two of the largest online gambling platforms. The popularity of Prediction Markets has caught the eye of Wall Street with companies such as Goldman Sachs and Susquehanna trying to figure out how they can trade on these new platforms. Coinbase and Robinhood are also adding Prediction Markets to their platforms as they are competing to become the ‘everything app’. Additionally, there is concern that college students and teens could be fueling the growth of Prediction Markets. This episode reviewed articles from The Wall Street Journal, CNBC, and Yahoo Finance.