Banks Are Hiding Credit Losses (Here’s How) | Bill Moreland of BankRegData

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Bill Moreland of BankRegData joins Jack to share how many banks’ extensive use of loan modifications have caused reported delinquencies to appear lower than they might otherwise have been. While Moreland acknowledges that modifications play a vital role in securing repayment, he maintains that their popularity over the past 3 years indicates it is unusual and that some banks may be “manipulating the shit out of” the data. Moreland tells Jack about note-on-note financing - a practice wherein a bank sells a loan to a buyer and lends that buyer the funds to buy it - is further used to hide losses within bank balance sheets. Recorded on August 19, 2025.

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Timestamps
00:00 Intro
00:25 VanEck $SMHX Pre-roll
01:26 How Banks Hide Losses With Loan Modifications
15:46 VanEck $SMHX Mid-roll
18:20 The "Potemkin Village" of Credit
23:23 Bank of America
31:26 Wells Fargo
34:40 Credit Card Delinquencies
36:20 Discover (& Capital One)
39:36 Truist
42:52 Skyrocketing Loans to Nondepository Institutions
47:33 Note-On-Note Financing Spree
50:49 How JPMorgan Chase May Have Made $300 Million Nonperforming Loan Disappear
1:03:14 How Bank Failure Is Predicted By Modification Intensity (Formerly Troubled Debt Restructuring or TDR)
1:07:32 Flagstar
1:15:17 Is Bank Capital At Risk?
1:27:40 "They're Manipulating The $h1t Out Of The Data"
1:31:10 VanEck $SMHX End-roll

#banks #economy #macroeconomics #credit #creditcard #commercialrealestate #commercialproperty #realestate #stockmarketcorrection #collapse #economiccrisis