State Chamber Update
The global financial crisis of 2008 took its toll on Delaware banks and financial services firms, just as it did elsewhere around the globe. And these sector challenges had economic ripple effects on a wide range of other businesses all over Delaware. Yet we know the banking sector in Delaware is large, strong and the envy of other states. In the aftermath of those challenging times, banks and non-bank financial firms made heavy systems-investments to comply with the Dodd Frank law and other regulatory requirements. All of this has made them stronger and more fit institutions.
For the largest banks, I was struck by the comments of Federal Reserve Governor Randal Quarles this past Sunday in Hong Kong. He will take over the chairmanship of the Financial Stability Board (FSB) and discussed plans for its future as things have evolved. With the post-crisis reform agenda largely complete, the largest banks have more capital and liquidity and have taken steps to address risks associated with “too big to fail.” It will be interesting to see where Mr. Quarles leads this group next.
News You Can Use
The economic calendar this week is full of data. On Tuesday, the NFIB small business index number for January will be released, along with fourth quarter Household credit. On Wednesday, January Consumer Price Index figures will be released, followed by weekly jobless claims on Thursday and December Retail sales. We end the week with the release of industrial production numbers for January on Friday.