This is true but shiney is also right,cowboys in the industry will see this as a green flag to continue with the poor practices that are toxic
I tend to agree with you, although it should be noted that SVB and NY Signature Bank were very much on the inner, supporting the "right social/political causes" and public promoting their ESG policies.
Fed Rate Pivot Is Back in Play Markets are predicting a change in the course of interest rates now that there is trouble brewing in the banking sector. The deal appears to be as follows: As of the time of writing, there isn’t a buyer for the whole bank (sidenote: HSBC buys SVB's UK arm). Instead, the Federal Reserve, US Treasury and Federal Deposit Insurance Corporation announced in a joint statement that all depositors will have access to their money as of Monday, and that no taxpayers’ money will be used. The statement suggests that any ultimate costs will be borne by other banks through the levy on them for deposit insurance: There will be no protection for holders of bonds or equities in the banks, and the senior management has been fired. Meanwhile, the Fed will introduce a new acronym, the BTFP, which stands for Bank Term Funding Program, for which $25 billion is available. This will allow banks to borrow from the Fed using Treasury bonds as collateral and valuing them par. If the problem is solely one of liquidity rather than solvency, this should make a difference; banks are sitting on a lot of bonds whose value has tanked over the last year. This doesn’t matter so much if they can hold them to maturity, but becomes a very big problem if they have to sell them for a loss — in such a situation the possibility of a death spiral such as UK gilts suffered last autumn would arise. If the existence of the BTFP serves to calm the banks’ clients down, it doesn’t have to commit the money; if the pressure intensifies, it might have to come up with much more than $25 billion. The effect is to ease financial conditions a bit. If all goes to plan, however, the outcome will be to make bank depositors (not just SVB’s) bear the bulk of the cost. That will ultimately be bad for banks’ profits, and therefore their shareholders. https://www.bloomberg.com/opinion/a...runs-into-a-defi-wall?leadSource=uverify wall
The Plunge Protection Team seem to be doing a stellar job in keeping the overall stock markets in the green as of 2 am local time despite all the steep bank losers. I wonder if they will be able to keep shovelling money in every hole that needs to be plugged in to stop the contagion from spreading to unaffected banks. I guess we will know in the morning if the Dow is up 1,000 points that they were successful, and if it is down 1000 points then it was not successful. I expect quite a bit of volatility to last a least until Wednesday when things might settle down a bit by then.
They are shoveling as fast as they can haha. At this point they may as well give up on the inflation fight and do what they can to save the banks and the markets. Its the only choice to keep the fakery going and they have a foot on each pedal now anyway. They can continue endless bailouts and rob the treasury of any possible future or chance of recovery before Brics makes an announcement. Might be the best play. Gains are privatized while losses are socialized.
30+ U.S banks hit with NYSE trading halts thus far, including Charles Schwab. First Republic, Western Bancorp and PacWest are getting blown the f##k out.
https://www.cnbc.com/2023/03/11/silicon-valley-bank-employees-received-bonuses-hours-before-takeover.html Ha ha, the title says it all!
Employees received their standard annual bonuses, not execs dipping in before the collapse. It pays dividends to have reading comprehension skills in 2023.
Be nice if all jobs paid their employees large bonuses just for doing their job. The perks of having access to funny money. Wonder how all these snowflakes in tech are going to handle the real world.
First Republic Bank shares plunge days after three other US banks collapse Customers and investors appear to have lost faith in another US bank, just days after three banks sensationally collapsed in a move that sent shockwaves around the world. Overnight, fears mounted for a regional bank based in San Francisco, First Republic Bank, with its shares tanking drastically. SVB, Silvergate, Signature banks all have been taken over by US govt and now today First Republic bank 70% market cap was wiped off and there are 10 other regional banks hemorrhaging. US govt has frozen the trading on these 10 regional banks which includes First Republic bank.
Michael Kay. Sorry if it stressed you out, mate. It was copied n pasted! Was in a hurry but wanted to share the info! lol
Apparently there's 1 bank for every 70 000 people in the US, in Australia there's 1 for every 260 000 people.
Joseph did a good talk about this topic. In short these banks didn't do their job and manage risk. He thinks they might change the $250K deposit insurance across all the bank to unlimited, but said it would be a bad idea as it will just increase bad behavior.
There are about 21 million people above the age of 14 (one would assume anything over 15 you would have a bank account) So 1 in 260,000 means there are about 80 banks in Australia. I didn't realise we have that many banks in OZ?
