Episode 139

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Published on:

9th May 2023

The Fed Kills Banks, the Aftermath and the Galactic Menagerie

Employment openings pulled back further in March, hitting a nearly two-year low in a sign that the ultra-tight U.S. job market is loosening and possibly putting less pressure on inflation, according to a report by the Labor Department. The department’s Job Openings and Labor Turnover Survey showed that job vacancies totaled 9.59 million for the month, down from 9.97 million in February and below the FactSet estimate for 9.64 million. At the same time, layoffs and discharges jumped by 248,000 to just over 1.8 million, taking the rate as a share of the workforce up to 1.2% from 1%.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.


They discuss a report from payroll processing firm ADP that states that private payrolls rose by 296,000 for April, above the downwardly revised 142,000 the previous month and well ahead of the estimate for 133,000.


Chris and Saied look at Fed Chair Jerome Powell's recent press conference, in which he said that, "The run on Silicon Valley Bank was out of keeping with the speed of runs through history. And that now needs to be reflected in some way in regulation and in supervision.”


They also offer some thoughts on the recent increase in the Fed's target range for its benchmark interest rate by 0.25%, while leaving its options open on future rate hikes.



Join Chris and Saied for this fascinating and informative conversation.


Enjoy!



What You’ll Learn in this Show:

  • Why the entire regional bank sector is taking a significant pounding.
  • Why the market doesn't believe a lot of what Fed Chair Jerome Powell is saying.
  • The reason why so many knowledgeable people on the news and in social media seem to have no idea how banking works.
  • The role of digital banking, providing depositors with quick access to their funds that they can move immediately.
  • And so much more...


Resources:

"Dow tumbles more than 300 points as banking sector worries reignite before Fed rate decision" (CNBC)

"Job openings fell more than expected in March to lowest level in nearly two years" (CNBC)

"Private payrolls surged by 296,000 in April, much higher than expected, ADP says" (CNBC)

"Fed recap: Here are Chair Powell’s market-moving comments after the latest rate hike" (CNBC)

"Federal Reserve pushes interest rates above 5% for first time since 2007" (Yahoo! Finance)

"Exclusive: US officials assessing possible 'manipulation' on banking shares" (Reuters)

"Apple reportedly attracted $1 billion in deposits into its new high-yield savings account in just 4 days" (BusinessInsider)

"As JPMorgan Scoops Up First Republic, Are Banks Facing Their ‘Minsky Moment?'" (Payments.com)

"US job openings fall to a nearly 2-year low of 9.6 million. Fewer people are quitting too" (MarketWatch)

"For Banks Under Stress, There’s a Federal Backstop That Provides Help Without Stigma" (Bloomberg)

"Regional Bank Stocks Close at Lowest Level Since 2020" (Wall Street Journal)

"What a Fed Debate 17 Years Ago Reveals About Its Rate Deliberations Now" (Wall Street Journal)

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About the Podcast

The Higher Standard
This isn’t a different standard, it’s the higher standard.
Welcome to the Higher Standard Podcast, where we give you ultra-premium, unfiltered truth when it comes to building your wealth and curating the lifestyle of your dreams. Your hosts; Chris Naghibi and Saied Omar here to help you distill the immense amount of information and disinformation out there on the interwebs and give you the opportunity to choose a higher standard for yourself. Sit back, relax your mind and get ready for a different kind of podcast where we elevate your baseline with crispy high-resolution audio. This isn't a different standard. It's the higher standard.

About your host

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Christopher Naghibi

Christopher M. Naghibi is the host and founder of The Higher Standard podcast — a rapidly growing media platform delivering unfiltered financial literacy, real-world entrepreneurship lessons and economic commentary for the modern era.

After nearly two decades in banking, including his most recent role as Executive Vice President and Chief Operating Officer of First Foundation Bank (NYSE: FFWM), Christopher stepped away from corporate life to build a brand rooted in truth, transparency, and modern money insights. While at First Foundation, he had executive oversight of credit, product development, depository services, retail banking, loan servicing, and commercial operations. His leadership helped scale the bank’s presence in multiple national markets from $0 to over $13 billion.

Christopher is a licensed attorney, real estate broker, and general building contractor (Class B), and he brings a rare blend of legal, operational and real estate expertise to everything he does. His early career spanned diverse lending platforms, including multifamily, commercial, private banking, and middle market lending — holding key roles at Impac Commercial Capital Corporation, U.S. Financial Services & Residential Realty, and First Fidelity Funding.

In addition to his media work, Christopher is the CEO of Black Crown Inc. and Black Crown Law APC, which oversee his private holdings and legal affairs.

He holds a Juris Doctorate from Trinity Law School, an MBA from American Heritage University, and two bachelor degrees. He is also a graduate of the Yale School of Management’s Global Executive Leadership Program.

A published author and sought-after speaker (unless it’s his son’s birthday), Christopher continues to advocate for financial empowerment. He’s worked pro bono with families in need, helped craft affordable housing programs through Habitat for Humanity, and was a founding board member of She Built This City — helping spark interest in construction and trades for women of all ages.