The Banker Next Door

Was KPMG partially responsible for the 2023 banking crisis?

KPMG, one of the big four accounting firms in the U.S., was the audit firm for Silicon Valley Bank, Signature Bank, and First Republic Bank, the three major banks that failed in the banking crisis of 2023. A new report from The Senate Permanent Subcommittee on Investigations examined KPMG’s role in the bank failures. Does KPMG bear any responsibility in the failure of these banks? This episode examines two articles one from Banking Dive titled “Senate report on Silicon Valley Bank rips KPMG, reveals CFO role” and one from The Wall Street Journal titled “KPMG ignored flaws at regional banks before 2023 crisis, Senate Report finds.”  Links to the Banking Dive article and report are included below. 
Link:  Senate report on Silicon Valley Bank rips KPMG, reveals CFO role | CFO Dive
Link: 2025_09_17-Regional-Bank-Failures-Report-1.pdf

Review of Bank Director 2025 Technology Survey

Bank Director’s 2025 Technology Survey examines decision-making, data strategies, and how banks are using artificial intelligence. Banks are continuing to grapple with data, AI maturity, and technology costs. This episode examines an article from Bank Director titled “2025 Technology Survey: Banks Grapple with data, AI maturity.” Links to both the article and report are included below. 
Link: 2025 Technology Survey: Banks Grapple With Data, AI Maturity | Bank Director
Link: 2025TechReport-OpenVersion.pdf

How should banks deal with cross-border payments?

Cross-border payments reforms continue to take shape. It is important for community banks to understand opportunities and significant changes in this space. The G20 roadmap continues to take shape around three key areas. 1) Payment system interoperability and extension, 2) Legal, regulatory, and supervisory frameworks, and 3) Cross-border data exchange and message standards. This episode examines an article from Independent Banker Magazine titled “What should community banks know about cross-boarder payments?” A link to the article is included below.
Link:  What Should Community Banks Know About Cross-Border Payments?

Review of OCC Report on Bank Trading and Derivatives Activity for 2Q 2025

This episode examines the results from the OCC 2Q 2025 Bank Trading and Derivatives Activities report for banks in the U.S. Bank trading revenue increased $16.6 billion in the 2nd quarter. Derivative notional amounts increased by $13.1 trillion to $223.5 trillion.  Links to the press release and report are included below.
Link: OCC Reports Second Quarter 2025 Bank Trading Revenue | OCC
Link: Quarterly Derivatives Report Second Quarter 2025

The failure of public schools is epidemic!

A new report from NAEP on public school performance in the U.S. shows catastrophic results with 1 in 5 Americans functionally illiterate! The public school system in the U.S. has consumed trillions of dollars only to deliver worse results. This episode examines two articles from the Epoch Times (subscription required) title “Latest education scores reveal failure of regulatory accountability and DEI” and “She couldn’t read her own diploma: Why public schools pass students but fail society.”

BND: Strategy Room 9-27-2025

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.

What is myth versus fact for banks when it comes to Stablecoins?

With the passing of The Genius Act and other potential legislation on the way, Banks will soon have a full regulatory framework around Stablecoins. This new legislation has brought expectations around Stablecoins, with some people seeing major change while others think not much will happen. In this episode we consider myth versus fact by reviewing an article from Bank Director titled “Stablecoins and Banking: Separating Fact from Fiction.” A link to the article is included below.
Link: Stablecoins and Banking: Separating Fact From Fiction | Bank Director

Is there an opportunity for Community Banks in Multifamily lending?

National and regional banks have been pulling back on Multifamily lending. Does that create an opportunity for Community Banks? The pullback in lending by the largest banks is due, in part, to higher interest rates on existing debt and tighter liquidity. We consider some tips for Community Banks that could lead to multifamily lending success. This episode reviews a blog post from PCBB titled “Can you fill the Multifamily Lending Gap?” A link to the blog post is included below.
Link: Can You Fill the Multifamily Lending Gap?

Capital markets are eager for banks to raise money, but how should it be used?

Capital markets are open for banks that need to raise capital, which is great. The question is what will banks use the capital for? Outside of M&A, investors are going to be looking for banks to invest raised capital in ways that will boost a bank’s profitability. At the same time, banks have a lot of pressing needs, particularly with technology. While all these needs are important, they do not all return an immediate impact to the bottom line. If a bank decides to raise capital, they will have to be very careful about how the money is invested. The episode reviews an article from Bank Director titled “The capital markets are wide open for banks, industry observers say.” A link to the article is included below. 
Link: The Capital Markets Are Wide Open for Banks, Industry Observers Say | Bank Director

With interest rates set to decrease, where can you go for yield?

As interest rates are set to decrease U.S. Treasurys remain a go to investment for income and safety but are there other alternatives? Municipal bonds, agency mortgage-backed securities, and preferred stock are three potential alternatives. An additional consideration, what is better, a tax-exempt municipal bond or a taxable bond?  This episode reviews two articles from The Wall Street Journal (subscription required) titled “Three alternatives to U.S. Treasurys that give you safety and yield” and “Tax-Exempt Munis vs. Taxable Bonds: Which has higher return?”