New Regulations Shrink Bank Sector, Layoffs Mount, Risks Rise in Financial System. Reduced Lending, Slower Growth Forecast. US Faces Higher Refinancing Costs as Deficit Soars. Trouble in Africa

On August 29, 2023, the three major bank regulatory agencies issued a whopping 1,087-page set of new rules and regulations for the banking industry. The rules emerged following the recent failures of three regional banks, a series of events which exposed financial vulnerabilities in the sector. After a comment period, the rules are expected to take effect in January 2024.

What are the long-term implications of these new rules? Bank analyst, DICK BOVE, says the rules certainly mean reduced risk for banks. But the rules also transfer huge risks to the non-bank sector which will impact the economy negatively, he says. Meanwhile, the US government is facing fresh challenges in containing run away spending as the deficit soars, says MAT VAN ALSTYNE, Odeon co-founder and managing partner.

Elsewhere, the CONVERSATION examines the Odeon Capital Group Money Supply, which shows the Fed did not capture the actual decline early enough in the US Money Supply as measured by its own data. On the global scene, we discuss trouble in Africa's hotspots and ask why did the leaders of China and Russia skip the recent G-20 Summit in India. Joining the CONVERSATION is out host, JOHN AIDAN BYRNE.

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