Twisted
Contributing Member
Hancock Whitney
ECON [FINANCE] First Deathburger Thread of the 2023 Banking Crisis. ALL welcome (hall passes at the door). Have At It.
- Thread starter night driver
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Blacknarwhal
Let's Go Brandon!
With THAT kind of money I can still buy half of Michigan's open land.
Groucho
Has No Life - Lives on TB
Is that during winter or after spring? Inquiring minds want to know.
The Hammer
Has No Life - Lives on TB
Wait.
50 billion??
What's that in USD?
I didn't think the Swiss Franc was that far off.
Just looked it up. One Swiss Franc is 1.07 USD...
SmithJ
Veteran Member
A billion here, a billion there…. It ain’t what it used to be
emiliozapata
Senior Member
you fancy yourself a bit much
jward
passin' thru
zerohedge
@zerohedge
·
1m
This is a last ditch liquidity infusion. All it does is prevent forced asset liquidations (a la SVB). Meanwhile it does nothing to halt the depositor flight.
View: https://twitter.com/zerohedge/status/1636173990015148032?s=20
@zerohedge
·
1m
This is a last ditch liquidity infusion. All it does is prevent forced asset liquidations (a la SVB). Meanwhile it does nothing to halt the depositor flight.
View: https://twitter.com/zerohedge/status/1636173990015148032?s=20
Blacknarwhal
Let's Go Brandon!
Forever. But you'd have to cut it. An Obama pallet was a couple billion, last I knew.
bw
Fringe Ranger
Not judging from all the splody heads around here.
RememberGoliad
Veteran Member
And to a certain number of those depositors, it just shoved their morning's plans into overdrive....and probably pushed another batch of them off the fence and onto the bandwagon. The exact opposite of what they were nominally trying to accomplish.
mzkitty
I give up.
Saudis bailing out........
9:49 PM EDT, Wed March 15, 2023
London CNN —
Hours after the Swiss central bank said it was ready to provide financial support to Credit Suisse, the beleaguered megabank took it up on the offer, hoping to reassure investors that it had the necessary cash to stay afloat.
Credit Suisse said it would borrow up to 50 billion Swiss Francs ($53.7 billion) from the Swiss National Bank. Investors sent shares in the country’s second biggest lender crashing by as much as 30% Wednesday.
The bank called the loan a “decisive action to pre-emptively strengthen its liquidity.”
“This additional liquidity would support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs,” the bank said in a statement.
In addition to the loan from the central bank, Credit Suisse also said it repurchased billions of dollars of its own debt to manage its liabilities and interest payment expenses. The offer covers $2.5 billion of US dollar bonds and €500 million ($529 million) of euro bonds.
Earlier Wednesday, in a joint statement with the Swiss financial market regulator FINMA, the Swiss National Bank (SNB) said Credit Suisse (CS) met the “strict capital and liquidity requirements” imposed on banks of importance to the wider financial system.
“If necessary, the SNB will provide CS with liquidity,” they said.
Already on edge after the failure of Silicon Valley Bank in the United States last week, investors dumped shares in the embattled Swiss bank earlier in the day, sending them plummeting to a new record low after its biggest backer appeared to rule out providing any more funding.
In their statement, the Swiss authorities said that the problems of “certain banks in the USA do not pose a direct risk of contagion for the Swiss financial markets.”
“There are no indications of a direct risk of contagion for Swiss institutions due to the current turmoil in the US banking market,” the statement continued.
Saudi backers ‘not inclined’ to increase funding
The chairman of the Saudi National Bank — Credit Suisse’s biggest shareholder, following a capital increase last fall — said earlier Wednesday it would not increase its stake in Credit Suisse.
“The answer is absolutely not, for many reasons,” Ammar Al Khudairy told Bloomberg, on the sidelines of a conference in Saudi Arabia. “I’ll cite the simplest reason, which is regulatory and statutory. We now own 9.8% of the bank — if we go above 10% all kinds of new rules kick in, whether be it by our regulator or the European regulator or the Swiss regulator,” he said. “We’re not inclined to get into a new regulatory regime.”
Once a big player on Wall Street, Credit Suisse has been hit by a series of missteps and compliance failures over the past few years that have damaged its reputation with clients and investors, and cost several top executives their jobs.
Customers withdrew 123 billion Swiss francs ($133 billion) from Credit Suisse last year — mostly in the fourth quarter — and the bank reported an annual net loss of nearly 7.3 billion Swiss francs ($7.9 billion), its biggest since the global financial crisis in 2008.
In October, the lender embarked on a “radical” restructuring plan that entails cutting 9,000 full-time jobs, spinning off its investment bank and focusing on wealth management.
Al Khudairy said he was pleased with the restructuring, adding that he didn’t think the Swiss lender would need extra money. Others are not so sure.
Johann Scholtz, a European banking analyst at Morningstar, said Credit Suisse might no longer have enough capital to absorb losses in 2023 because its funding costs were becoming prohibitive.
“To stem client outflows and ease the concern of providers of wholesale funding, we believe Credit Suisse needs another rights [share] issue,” he commented Wednesday. “We believe the alternative would be a break-up … with the healthy businesses — the Swiss bank, asset management and wealth management and possibly some parts of the investment banking business — being sold off or separately listed.”
‘Not just a Swiss problem’
The bank’s shares were last down 24% in Zurich on Wednesday, and the cost of buying insurance against the risk of a Credit Suisse default hit a new record high, according to S&P Global Market Intelligence.
The crash spilled over into other European banking shares, with French and German banks such as BNP Paribas, Societe Generale, Commerzbank and Deutsche Bank falling between 8% and 12%. Italian and UK banks also slumped.
Two supervisory sources told Reuters that the ECB had contacted banks to quiz them about their exposures to Credit Suisse. The ECB declined to comment.
While the problems at Credit Suisse were widely known, with assets of about 530 billion Swiss francs ($573 billion) it presents a much bigger potential headache.
“[Credit Suisse] is much more globally interconnected, with multiple subsidiaries outside Switzerland including in the US,” wrote Andrew Kenningham, chief Europe economist at Capital Economics. “Credit Suisse is not just a Swiss problem but a global one.”
The blows keep coming for Switzerland’s second biggest bank. On Tuesday, it acknowledged “material weakness” in its financial reporting and scrapped bonuses for top executives.
Credit Suisse said in its annual report that it had found “the group’s internal control over financial reporting was not effective” because it failed to adequately identify potential risks to financial statements.
The bank is urgently developing a “remediation plan” to strengthen its controls.
Speaking to Bloomberg TV on Tuesday, Credit Suisse CEO Ulrich Körner said the bank saw “material good inflows” of money on Monday, even as markets were spooked by the collapse of SVB and Signature Bank in the United States.
Overall, outflows from the bank had “significantly moderated” after customers withdrew 111 billion francs ($122 billion) in the three months to December, Körner added. In its annual report, the bank said outflows had not yet reversed by the end of last year.
night driver
ESFP adrift in INTJ sea
No, Mrs. Calabash, last Sunday was ONLY the BEGINNING of the End.
Our Betters (or in this case Bettors), figured they could blow SVB out of the water because they KNEW there was enough in loose cash assets in flow there that ALL of the depositors would be made whole and it wouldn't cost anyone a red cent.
Thus why the WhiteList of potential purchasers for SVB. Y'all have just watched a FINE Kabuki Dance. And just a note, the only REAL difference between this week's Kabuki Dance and one of Dita Von Tease's better Fan Dances, is hers are WAY more honest.
Anyone wanna bet we actually get THROUGH this weekend before the NEXT shock hits???
==========================================================================
Oh, Kudairy (sp) ACTUALLY said, "HELL NO!! We go to 10% ownership and we are then FIRMALY ATTACHED to that M-F-N TarBaby. We LIKE being able to cut our losses and bail,"
Our Betters (or in this case Bettors), figured they could blow SVB out of the water because they KNEW there was enough in loose cash assets in flow there that ALL of the depositors would be made whole and it wouldn't cost anyone a red cent.
Thus why the WhiteList of potential purchasers for SVB. Y'all have just watched a FINE Kabuki Dance. And just a note, the only REAL difference between this week's Kabuki Dance and one of Dita Von Tease's better Fan Dances, is hers are WAY more honest.
Anyone wanna bet we actually get THROUGH this weekend before the NEXT shock hits???
==========================================================================
Oh, Kudairy (sp) ACTUALLY said, "HELL NO!! We go to 10% ownership and we are then FIRMALY ATTACHED to that M-F-N TarBaby. We LIKE being able to cut our losses and bail,"
vector7
Dot Collector
*FED WORKING WITH US TREASURY TO REVIEW CREDIT SUISSE EXPOSURES
So we're bailing out European banks now?
View: https://twitter.com/mrbergmann/status/1636060455801348101?s=20
So we're bailing out European banks now?
View: https://twitter.com/mrbergmann/status/1636060455801348101?s=20
night driver
ESFP adrift in INTJ sea
Don't blink next year or you'll miss it.
von Koehler
Has No Life - Lives on TB
Overnight futures up on hopeium on Swiss bailout.
Reality has yet to emerge.
Reality has yet to emerge.
Ractivist
Pride comes before the fall.....Pride month ended.
Benedict Biden
Babs
Veteran Member
Credit Unions are insured by the NCUA. I hope they're in better shape than the FDIC.
von Koehler
Has No Life - Lives on TB
Really the same situation. As long there are only a few failures at any particular time, their reserves can cover the losses.
But system wide failures, then no.
At that point the only thing .fedgov can do is a total bank closure. FDR did this in the 1930's.
hiwall
Has No Life - Lives on TB
Its just another Fed gov agency. I don't see any difference between NCUA and FDIC except the FDIC deals with larger amounts of money.
Profit of Doom
Dismember
What’s a few zeros among friends?
Countrymouse
Country exile in the city
Which is why, when Woke Socialist Broadcasting came on at noon yesterday, they REFUSED TO MENTION THE ACTUAL "POINTS" DROP and instead only mentioned the PERCENTAGE DROP-- 2 % at noon.............
vector7
Dot Collector
JP MORGAN: FEDERAL RESERVE’S EMERGENCY LOAN PROGRAM MAY INJECT AS MUCH AS $2 TRILLION OF FUNDS INTO THE US BANKING SYSTEM AND EASE THE LIQUIDITY CRUNCH
They need to quicken the US National Debt to 50tln before 2030
View: https://twitter.com/FirstSquawk/status/1636248030503477249?t=iiPY5ppb35ECss3Stexzuw&s=19
They need to quicken the US National Debt to 50tln before 2030
View: https://twitter.com/FirstSquawk/status/1636248030503477249?t=iiPY5ppb35ECss3Stexzuw&s=19
night driver
ESFP adrift in INTJ sea
THERE we go!!
I KNEW if we waited long enough they would find someone with a decent crack habit to talk this up.
I KNEW if we waited long enough they would find someone with a decent crack habit to talk this up.
Countrymouse
Country exile in the city
And then one more trick.
FedNow to launch by mid-2023, Fed official says
The federal government’s new real-time payments system should be ready for use by the middle of next year, Fed Governor Michelle Bowman said in a speech this week.www.paymentsdive.com
Its the infrastructure for the CBDC. Once its in place all it takes is a button push to populate an account for every person in the country and transfer account balances from the bank to FedNow service to be used as digital currency.
The trick is making you want it to happen.
Making it TOTALLY SAFE FROM FRAUD--non-hackable and non-stealable (by merely stealing your card or card number).
Oh--easy! Make the ID for the account something NO one else can duplicate or reach!
As in -- a chip INSIDE your body.
'nuff said--you get the picture.
Countrymouse
Country exile in the city
Well of course you won't "pay" them--
they'll just "deduct" them--right out of your account.....
Countrymouse
Country exile in the city
Or too scared.............
Why wait?
coalcracker
Veteran Member
4:35 Eastern time and those futures are falling like a proverbial rock. Still green, but heading down, down, down in a burning ring of fire. Down, down, down and the flames went higher, and it burns, burns, burns.
Volatility is the word. Beware of these next two days heading into this weekend, this Thursday-Friday. I hear the train a’comin. It’s comin round the bend. Reality ain’t seen the sunshine since I don’t know when…
momma_soapmaker
Disgusted
Real estate will start imploding shortly.
All part of their "you'll own nothing" plan.
All part of their "you'll own nothing" plan.
SmithJ
Veteran Member
That’s some Weimar Republic crap right there!
hiwall
Has No Life - Lives on TB
There is no way for the peons to know but the Fed could have (and likely were) been injecting free money into the big banks for the last 10 years or more.
Is all this financial turmoil planned and a side-effect of the Ukrainian/Russia mess? The Russian sanctions have cut them off from the Western banking system so they are isolated from the fallout. The BRICS countries seem to be working on their own financial system and are probably somewhat isolated too. Saudi Arabia announced that they didn't feel like helping Credit Suisse with any loans. Are we looking at a world where the Western powers are losing ground to the "other side", whoever that is? Right now it looks like the existing post WW2 power base is losing ground to the WEF and the BRICS. Is this being helped along by the Biden/China/WEF/Soros axis or is it just the way things go when a system gets too large and too established? It doesn't really matter to us peons. The end result is the same for us flunkies down here in the trenches.
The Hammer
Has No Life - Lives on TB
Some, yes. But I can tell from others' tone of voice and demeanor that they really are just being led around by whatever media they happen to catch. And in many cases, that media, if it mentions the crisis at all, is currently being very nonchalant about it.
We saw this in 2008. Many pretended there was no problem until suddenly it was "the financial crisis" and "the great recession" splattered all over the headlines.
psychgirl
Has No Life - Lives on TB
Didn’t 2008 happen so fast that there wasn’t much time for people NOT to know what was happening??
I seem to remember following along (I was new to forums back then) and before that week was over it went “boom”
My memory could be skewed though.
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