It seems that General Yellen is not feeling too well these days, isn't she/he the one who said there would be no financial crisis in her/his lifetime? BREAKING: JANET YELLEN COMPLAINS ABOUT NON-STOP MIGRAINE Treasury Secretary examined by doctors following massive headache attack lasting days. "It pretty much incapacitated her," said an unnamed source at Treasury, "Others had to step up and fill the void." Treasury Secretary wracked by migraines since financial crisis hit the headlines. "She's been in a really dire state," said a source close to the situation, "We hope it's just headaches at this point."
I think he may be buying bank stocks too according to one of his tweets. I can't fault his logic. We already knew it, but the government has basically confirmed that deposits are no longer the liabilities of banks, but of the State. I know it's not going to happen but I wonder if they'll broaden consumer protection to include crypto exchanges.
its a new operation chokepoint 2.0 that targets crypto, how else do you think the gov can sieze a bank? also the first time a bank run was engineered using social media. https://fortune.com/2023/03/13/signature-bank-seized-to-send-a-message-crypto-barney-frank/
https://amp.cnn.com/cnn/2023/03/13/investing/first-republic-bank/index.html Looks like a lot of regional banks took a hit
Large US banks are being inundated with requests from customers trying to transfer funds from smaller lenders, as the failure of Silicon Valley Bank results in what executives say is the biggest movement of deposits in more than a decade. JPMorgan Chase, Citigroup and other large financial institutions are trying to accommodate customers wanting to move deposits quickly, taking extra steps to speed up the normal sign-up or “onboarding” process, according to several people familiar with the matter. A package of emergency measures unveiled by the US government on Sunday, including a new Federal Reserve lending facility for banks, appears to have passed its first major test for now by staving off the failure of a third bank following the implosion of SVB and Signature Bank. However depositors are still attempting to move balances into larger banks such as JPMorgan, Citi and Bank of America, as well as money market funds, the people said. That is especially the case when balances exceed the $250,000 threshold that is guaranteed by federal insurance. Deposit transfers from SVB and other regional lenders to large banks picked up steam last week and continued on Monday, the people said. “The calls have been coming in today like airplanes stacked on a snowy day at O’Hare airport,” said one senior banker, referring to Chicago’s busy aviation hub. JPMorgan has shortened the waiting time for opening an account and is expediting the speed at which new corporate customers can access funds to ensure they can pay staff at the end of this week, according to one person briefed on the matter. Several banks have reassigned employees to jobs connected to account openings, the people said. Citi’s private bank, which caters to wealthy individuals, is trying to open accounts within a day of application compared with the typical timeline of one to two weeks, some of the people said. The lender has also started to open accounts and initiate money transfer procedures while the new client is still undergoing compliance checks. https://www.ft.com/content/2b580939-a4b6-48d2-8eb6-629b4cb1e06c
https://www.cnbc.com/2023/03/14/cre...reporting-says-outflows-not-yet-reversed.html Shares of Credit Suisse fell by 5% in early Tuesday trade to hit a new all-time low, after the bank announced it had found “material weaknesses” in its financial reporting processes for 2022 and 2021. In the Tuesday annual report, Credit Suisse revealed that it had identified “certain material weaknesses in our internal control over financial reporting” for the years 2021 and 2022. These issues related to a “failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements” and various flaws in internal control and communication. Despite this, the bank said that it was able to confirm that its financial statements over the years in question “fairly present, in all material respects, [its] consolidated financial condition.” Credit Suisse further said its net asset outflows had declined but “not yet reversed.” The bank confirmed its 2022 results announced Feb. 9, which showed a full-year net loss of 7.3 billion Swiss francs ($8 billion). -- Credit Suisse acknowledged that these circumstances have “exacerbated and may continue to exacerbate” liquidity risks. The reduction in assets under management is expected to result in reduced net interest income and recurring commissions and fees, in turn affecting the bank’s capital position objectives. “A failure to reverse these outflows and to restore our assets under management and deposits could have a material adverse effect on our results of operations and financial condition,” the report said.
It took me a while to get around the paywall so I've summarised it: https://www.ft.com/content/63dc908c-d5cd-4b04-b51a-9a9ba3e38b31 "A quick run through Silicon Valley Bank’s risk management snafus 1. Risk Tech start ups 2. Lack of diversification Clients in largely one area, one industry 3. Hedging Hedges against rising rates were terminated or allowed to expire 4. Marking to market Portfolio valuation wasn't up-to-date 5. Risk management oversight No professional risk-management team from April 2022 - January 2023 6. Poor networking SVB clients were largely connected 7. Stayed below the regulation radar Assets were below the required threshold, the CEO lobbied to have thresholds raised."
I think there was about half a year between lehman and bear Stearns collapsing. Hopefully there will be much drama to come!
I don't think it will change The Fed's direction much so I don't see anything to gain from any further instability. Edit to add: though The Fed's timeframe may have been shortened
they missed one 8. Get woke, go broke They pushed an agenda supporting start ups that were woke rather than profitable
Looks like the banking collapse blues are beating out their tune again, could be another ugly night on the financial markets. Credit Suisse’s top shareholder, the Saudi National Bank, rules out providing more financial assistance to the struggling Swiss bank, citing regulatory issues — Bloomberg Credit Suisse down -16.73% in pre-market trading
The Credit Suisse saga has been playing for over a decade. The MSM is going to run with as many "bank-stressed" stories as it can find, we're all well and truly over Megs and harry after all.
This has been posted before but it's more interesting than 99.99% of the bank stories out there, they even dragged Robert - The Man Who Predicted the Lehman Collapse" - Kiyosaki out I see.
So are you saying that it can go all the way down to zero and there is nothing to worry about? Personally, I don't give a fuck if Credit Suisse or Deutsche Bank goes down but these are big players who can bring the whole financial system down. I am only following it because it is good for the price of gold.
No. I'm saying that the Credit Suisse banking blues have been playing out far longer than the recent storm in the banking bucket. I don't know the ins and outs of what's happening at CS, but I'd say it won't get to 0 before it gets chopped up and sold off if they can't dig themselves out of the hole they have created. And that the MSM is going to run with as many banking blues stories as they can.
