The Banker Next Door

BND: Strategy Room 4-11-2026

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.

A new wave of foreign banks adds another competitive dynamic!

Foreign banks are seeking to gain access to the U.S. banking market. This is nothing new, but what is new is the type of bank. The new competition tends to be fintechs and neobanks with a digital-first approach. Some examples include OakNorth Bank, Revolut, and Nubank. These banks tend to be built around a customer-friendly digital interface. Younger customers are seeking a digital first approach. However, while the U.S. market can offer immense opportunities, it also presents difficult hurdles to overcome. Not all foreign banks have found success entering the U.S. market. Monzo, a U.K. based fintech, recently decided to give up on its push into U.S. banking. Monzo decided to shift their focus bank to Europe where it gained a banking license in December. This episode reviewed articles from Bank Director and Banking Dive. The article from Bank Director is titled “Foreign banks set sights on U.S. expansion.” The Banking Dive article is titled “Monzo to close US operations, accounts.” Links to both articles are included below.
Link: Foreign Banks Set Sights on U.S. Expansion | Bank Director
Link: https://www.bankingdive.com/news/monzo-close-us-accounts-june-operations-50-layoffs-europe-license-anil-layfield-uk-ipo/816357/

How to prevent tech buyer's remorse!

Banks can experience buyer’s remorse when they purchase costly software to upgrade their technology stack. This experience can be extremely painful as most community banks have small technology budgets to work with. Spending the bank’s budget on new technology that does not work out will most likely end up as money that cannot be recovered. This episode considers reasons why organizations regret tech purchases and offers strategies to use when purchasing new technology. This episode reviewed a blog post from PCBB titled “Avoiding tech buyer’s remove at your CFI.” A link to the blog post is included below.  
Link: Avoiding Tech Buyer’s Remorse at Your CFI

Review of GAO and OIG reports on workforce reductions for the SEC and FDIC

Two recent reports from the U.S. Government Accountability Office (GAO) and the Federal Deposit Insurance Corporation Office of Inspector General (OIG) highlights the workforce reductions at the SEC and FDIC. The GAO report states that since January 2025 the SEC had an 18% reduction in their workforce of approximately 871 employee departures. The SEC has made efforts to manage and assess the effects of this workforce reduction. The OIG report states that since January 2025 the FDIC had a 20% reduction in workforce of approximately 1,300 employee departures. The OIG report also highlights eight areas that require close attention. Both reports outline the potential long-term consequences of these employee reductions including loss of institutional knowledge. Links to both reports are included below.
Link: Securities And Exchange Commission: Recent Workforce Reductions and Other Personnel Management Changes | U.S. GAO
Link: TMPCFinalMarch 2026.pdf

Review of OCC report on Bank Trading and Derivatives Activites for the 4Q 2025

This episode reviews the OCC’s quarterly report on Bank Trading and Derivatives Activities for the 4th quarter of 2025. Trading revenue for the 4Q of 2025 was $14.9 billion, down 16% from the 3Q of 2025 and 4.4% year over year. The four largest banks continue to hold the vast majority of total banking industry’s notional amount of derivatives at 85.1%. Derivative notional amounts decreased in the 4Q of 2025 by $23.8 trillion (10%) to $208.1 trillion. Derivative contracts remain concentrated in interest rate products, which total 65.3% of total derivative notional amounts. A link to the report is included below.
Link:  Quarterly Report on Bank Trading and Derivatives Activities | OCC

Review of ICBA Advocacy in Action for 2Q 2026

This episode reviews ICBA Advocacy in Action for the 2nd quarter of 2026. This is a two-page PDF that provides a short summary of all the major regulatory issues in the banking industry. The topics include digital assets regulatory frameworks, house advances community bank regulatory relief bills, farm bill and aid, executive order to create mortgage rule relief, challenges to 1071 rule and statute, deposit insurance reform, 1033 rule (open banking), master account access and OCC trust charter, and GSEs. A link to the PDF is included below.
Link: top-issues-2

BND: Strategy Room Bonus - Blue Owl, Cliffwater, and others in trouble as redemption's explode!

This video is a clip from BND: Strategy Room Live Stream on April 4, 2026. The conversation around Private Credit continues as redemption's exploded in the last few weeks. The problem has turned extreme at Blue Owl, where they have two funds under pressure. This clip also looks at is another crisis on the horizon, bank’s overall exposure to Private Credit, how loans to Private Credit have been the #1 loan category for bank’s over the last five years, Private Credit’s retreat from commercial real estate loans, Private Credit’s exposure to the software industry, Fitch downgrades nonbank direct lenders (BDCs), Cliffwater is under extreme pressure, wealthy investors are heading for the exit, and Banks stand to lose a major stream of income if Private Credit Market dries up. Private Credit is really throwing off 2008 vibes. Finally, labor department proposes 401(k) alternative asset rule. Is that really a good idea right now? This clip examined multiple articles from The Epoch Times, The Wall Street Journal, and CNBC.  

BND: Strategy Room 4-4-2026

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.

Special Report: The Federal Reserve at a crossroads

This special report examines the difficult nomination of Kevin Warsh to Chairman of the Federal Reserve and the awkward transition facing him as Jerome Powell may stay around beyond the end of his term in May. Kevin Warsh’s time at the Fed could be transformational. He would like to do away with Forward Guidance, projections, change the Fed’s main targets, get away from data drift and dependence, and most importantly reduce the Fed balance sheet. All of this is very concerning to Wall Street and Capital Hill as they are perfectly happy to leave the Fed as it is. The reality for Mr. Warsh is far more difficult. Can the Fed reduce its balance sheet without creating other problems? Reducing bank reserves, taking too much liquidity out of the REPO market, and taking the punchbowl away from Wall Steet, just to name a few. Furthermore, should Mr. Warsh focus on revamping the Fed’s personnel, spending, and data? The Fed currently has 24,000 employees, the spending at the Board level has been increasing for decades, and the data points have not been updated and/or reevaluated in a long time. These are all areas that require major attention. Beyond all of this, the Fed has a major trust issue with main street. The Fed is truly at a crossroads. Mr. Warsh, should he be nominated, has a monumental task in front of him.  This episode reviewed multiple articles from The Epoch Times, The Wall Street Journal, and CNBC.   

24/7 Tokenized stock trading, crypto mortgages, and 'stretch' (Crypto Series Part XXXVIII)

This is part 38 of the crypto series. In this episode we provide an update on the stalemate with crypto legislation and how that is affecting the price of Bitcoin and other cryptocurrencies. We also look at Fannie Mae agreeing to accept crypto-backed mortgages in conjunction with Better Home & Finance and Coinbase. Nasdaq is partnering with Kraken to develop a plan for 24/7 tokenized stock trading. The hottest crypto trade right now is 24/7 oil futures, which is being offered by cryptocurrency exchange Hyperliquid. Strategy is now offering preferred issues called ‘stretch’. This new product operates like a hybrid security that has part stock and bond features. This new product does not come without risks. The world’s largest crypto event, Token2049 in Dubai was cancelled due to the conflict between the U.S. and Iran. The Justice Department continues to probe Binance and their role in moving money for potential Iranian terror groups. Finally, JPMorgan is sued over a potential $328 million crypto ‘Ponzi’ scheme involving a Florida-based company named Goliath Ventures. This episode reviewed multiple articles from Investopedia, Banking Dive, and The Wall Street Journal.