AlfaMan
Has No Life - Lives on TB
Another bank one doesn't want to look at-Barclay's in Britain.
ECON [FINANCE] 2023 Banking Crisis DEATHBURGER Thread 2023.2.0 will UBS actually eat Credit Suisse before the Open???
- Thread starter night driver
- Start date
- Status
Another bank one doesn't want to look at-Barclay's in Britain.
Plain Jane
Just Plain Jane
YES!!!!!
Warm Wisconsin
Easy as 3.141592653589..
Well they are putting a fix in ahead of time this time. See statement below.
What does this really mean?
The FED asked other global banks to sell their own currency for the US dollar and lend it to them in a loan form.
A central bank shell game of debt and cash.
However, this time they will put these funds into banks as deposits. Those deposits can the be used in the reverse repo market and create 10 times the amount of money they just leant to every one. They will be able to use this money to fund all kinds of bonds.
Tristan
Has No Life - Lives on TB
Great Northwet
Veteran Member
Nice find WW! It's the ECB stating this so they know if we crash, they crash too.
Great Northwet
Veteran Member
Yep; he lies about everything so when he said that, that's when the alarm went off in my head that something is really wrong.
LoupGarou
Ancient Fuzzball
The question(s) I have is(are): Are they (the banks and govts) actually quaking, or is this all part of the act and they know the end result (think WEF) of this part of the plan? Is this just a show for what they have been planning all along?
Is all the world a stage? Who are the players and who is being played?
They have to crash the current system, and do it in a way that it takes down the players that are NOT in the "current system". Leaving a chair or two on the floor while the music is about to stop still leaves people with a place to "be", at least some people. You can't "own the world" if there are still some people in it that you don't own yet (or haven't gotten rid of so that you don't have to own, them, but you own what they had as well as what you already own)... If all the majors go TU, then it is only a matter of time for the few "outside of the current system" to start to hurt badly and want into the new system, BUT if that number of people OUTSIDE the current system is big enough, they can work together and continue on at least at one level or another of "living".
The Hammer
Has No Life - Lives on TB
It feels to me very similar to 2008, and maybe more quickly developing. I feel like the talking heads are much slower now to realize something isn't right. In 2008, there seemed to be a slow-motion lead up, then all at once.
Back then, you had Cramer one week screaming how Bear Stearns was solvent, and the next with an epic rant about how the Fed knows nothing and better do something fast or we're all gonna die.
I feel like last week was the "Bear Stearns is solvent" week. This coming week might reveal the real show...
Everything is going according to plan. Do not forget, CBDCs by July.
Implementation begins in April, which means the system needs to be broken to the point where TBTP think CBDCs will be viable.
So far I'd say we're right on schedule.
Artificially Intelli
Senior Member
No, nothing like this. Not even close. We knew it was bad, but not the end of the world as we knew it. Everything going on today probably does lead to the end of the world as you have known it.
jward
passin' thru
Reuters Asia
@ReutersAsia
9m
Stock futures nudge higher on Credit Suisse buyout Stock futures nudge higher on Credit Suisse buyout
View: https://twitter.com/ReutersAsia/status/1637616223927128065?s=20
@ReutersAsia
9m
Stock futures nudge higher on Credit Suisse buyout Stock futures nudge higher on Credit Suisse buyout
View: https://twitter.com/ReutersAsia/status/1637616223927128065?s=20
jward
passin' thru
Reuters
@Reuters
11m
UBS will buy rival Swiss bank Credit Suisse for $3.23 billion and assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities that won applause from central bankers keen to avoid more market turmoil Central banks try to calm markets after UBS deal to buy Credit Suisse
View: https://twitter.com/Reuters/status/1637616191631159296?s=20
@Reuters
11m
UBS will buy rival Swiss bank Credit Suisse for $3.23 billion and assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities that won applause from central bankers keen to avoid more market turmoil Central banks try to calm markets after UBS deal to buy Credit Suisse
View: https://twitter.com/Reuters/status/1637616191631159296?s=20
The Hammer
Has No Life - Lives on TB
Whew, that was a close one...
In 2008-2009 several people "in the know" and very high on the financial food chain were quoted as saying things like "if we don't act this weekend there won't be an economy on Monday," "we're all socialists now," and "the United Kingdom's economy was just hours away from a total meltdown." I might be able to pull up the exact quotes if anyone actually cares about that bit of ancient history. I've said all along that in my opinion the financial crisis that started in 2008 never actually ended -- the collective "we" didn't seem to learn a damn thing from the experience and nothing was really resolved. For those that missed it, when SVB failed Treasury Secretary Yellen flatly stated that the $250K limit would be observed because rules had been put in place after 2008-2009, then Biden countermanded her and said all deposits would be covered.
Codeno
Veteran Member
That's a really impressive letterhead, I feel better already. Kinda solved the speedboat or $38,000 worth of wheat berries dilemma I've been going through.
Heliobas Disciple
TB Fanatic
Fed and Global Central Banks Move to Boost Dollar Funding
The Federal Reserve and five other central banks announced coordinated action Sunday to boost liquidity in US dollar swap arrangements, the latest effort by policymakers to ease growing strains in the global financial system.
www.bloomberg.com
Fed and Global Central Banks Move to Boost Dollar Funding
By Craig Torres
March 19, 2023, 5:02 PM EDT Updated onMarch 19, 2023, 8:48 PM EDT
- Central banks will boost frequency of swap-line operations
- They say step will help shield economies from funding strain
The Fed announced the move with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank in a statement saying the action was designed to “enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.”
“To improve the swap lines’ effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily,” the statement said.
The Fed said daily operations will begin on Monday, March 20 and will continue at least through the end of April.
AlfaMan
Has No Life - Lives on TB
Good points Loup. If this were a WEF type plan; I think it's already moved faster and cut more deeply than they planned. It's already gone from one or two relatively minor banks into big world stage players.
I don't even think the BRICS countries can escape the effects of this. We're already looking at a cascade of bank failures. One or two big banks failing would put world markets into a tailspin.
Thunderdragon
Senior Member
They have significantly improver their game now to manipulate the market.
SmithJ
Veteran Member
First Republic Bank Looms Large for U.S. Regulators After Credit Suisse Sale
Treasury Secretary Janet Yellen and Fed Chair Jerome Powell are seeking to reassure investors to halt a slide in financial stocks.
www.wsj.com
First Republic Bank Looms Large for U.S. Regulators After Credit Suisse Sale
Yellen and Powell try to reassure investors to halt slide in financial stocks
By David BenoitFollow
and Andrew Ackerman
Follow
Updated March 19, 2023 6:59 pm ET
Late Sunday, the Fed and five major central banks announced a coordinated effort to improve liquidity by moving U.S. dollars among themselves each day, starting Monday, instead of once a week. The central banks then lend those dollars out to financial institutions, in an effort to backstop other countries’ funding needs should strains emerge in global markets.
As jittery markets prepare to open Monday, U.S. officials’ main concern is First Republic Bank FRC -32.80%, which required rescue funding last week from a group of the nation’s biggest banks. Whether First Republic and other regional lenders stabilize in coming days will dictate whether additional private or government assistance is needed for banks.
In Switzerland, crumbling confidence prompted the sale of Credit Suisse for more than $3 billion. Regulators globally worried that a collapse of Credit Suisse, a systemically important financial institution, could reverberate among large banks in a number of countries. In the U.S., the President’s Working Group on Financial Markets, which includes officials from the Federal Reserve and Treasury Department, met to monitor the situation.
After the Credit Suisse takeover was announced Sunday, Treasury Secretary Janet Yellen and Fed Chair Jerome Powell welcomed the deal while also trying to reassure U.S. investors. “The capital and liquidity positions of the U.S. banking system are strong, and the U.S. financial system is resilient,” the two said in a joint statement.
Newsletter Sign-up
What’s News
Catch up on the headlines, understand the news and make better decisions, free in your inbox every day.
In the U.S., First Republic has become the latest pressure point. Its stock has fallen more than 80% in March. Customers have pulled some $70 billion in deposits, almost 40% of its total, according to people familiar with the matter. But the withdrawals stabilized Friday, after the country’s biggest banks came to its aid, the people said.
That slowdown and the $30 billion in new deposits from 11 of the biggest banks gave First Republic a chance to consider its future options.
“First Republic Bank is well-positioned to manage short-term deposit activity,” a bank spokesman said Sunday.
Regulators, too, were relatively quiet over the weekend, worried that after two weeks of intervention in the banking sector, too much more activity, too soon, would signal to skittish markets that the regulatory work done so far was insufficient. Further action, at the current juncture, might also discourage potential suitors for the struggling bank.
First Republic had discussed with advisers other potential solutions, such as an equity sale, before the bank rescue. Such options remain on the table, the people said. While bankers this weekend continued to debate potential next steps, no deal seemed imminent. First Republic’s leaders are hoping to prove the rescue deal stabilized the lender and avoid fire-sale prices, the people said.
Still, with the stock down sharply Friday and analysts warning the rescue plan didn’t patch a hole in the bank’s balance sheet, investors and analysts are questioning how stable First Republic is and for how long it can hold out.
Analysts said First Republic still needs to raise funds or sell itself because it is sitting on losses similar to the ones that helped sink Silicon Valley Bank earlier this month. For instance, Wedbush analysts said any acquirer would have to fill a $13.5 billion capital hole at First Republic.
On Sunday, S&P Global Ratings cut the credit rating on First Republic for the second time in the past week.
Advertisement - Scroll to Continue
How First Republic fares in the markets could determine whether the biggest banks, including JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co., have managed to stem the panic that has gripped the banking system this month. And it will play a role in how the market tumult ultimately affects broader economic activity.
The market’s reaction to developments at First Republic and Credit Suisse could influence how the Federal Reserve approaches its rate-setting meeting this week, where officials face a finely balanced decision over whether to raise interest rates by a quarter-percentage point or to forgo an increase altogether.
Fed officials have raised rates rapidly to slow the economy and fight inflation by tightening financial conditions, such as by lifting borrowing rates and pushing down asset prices. A significant question at their two-day meeting, which ends Wednesday, is how much additional tightening they expect to get from the markets turmoil and the banking sector.
Central-bank officials who say financial conditions are at greater risk of tightening abruptly because of the banking shock could favor holding steady their benchmark rate, currently in a range between 4.5% and 4.75%. Those who see the effects as more likely to be temporary, contained or modest could argue for pressing ahead with the next increase, aimed at cooling the economy, amid still-high inflation.
Illustration: Jacob Reynolds
Meanwhile, the Fed, Federal Deposit Insurance Corp. and the Biden administration continue to study the question of whether and when they might have to seek to provide further assistance to the banking industry, in particular smaller lenders.
For the moment, regulators were inclined to wait and see how First Republic and its peers fare in markets early this week. The calculus was that while First Republic is weak, it is still viable. So action by the Fed or government could be seen as overreacting and hinder private-sector solutions, which would be the preferred outcome.
Last week, for example, senior Biden administration officials talked with billionaire investor Warren Buffett as the banking crisis intensified. It wasn’t immediately clear what was discussed; Mr. Buffett didn’t respond to requests for comment and the Treasury declined to comment.
On Sunday, House Financial Services Committee Chairman Patrick McHenry(R., N.C.) told CBS News that major U.S. banks buying up smaller troubled lenders is a possible solution to ensure that Americans continue to have confidence in the financial system.
“I think all options should be on the table. That’s what I’m considering legislatively, that’s what I would encourage the administration to consider as well,” Mr. McHenry said.
Although policy makers prefer private action, there continue to be calls for bolder, broader steps, especially regarding bank deposits. On Friday, the Mid-Size Bank Coalition of America urged regulators to immediately guarantee all deposits in the U.S. for two years. In a letter, the group said deposits are leaving banks of all sizes and flooding into the four biggest banks, putting everyone at risk of a wider panic.
“Should another bank fail it is very possible that customer panic will set off a string of failures due to depositor bank runs regardless of the financial condition of the underlying banks,” the group wrote.
bw
Fringe Ranger
That's what's keeping them up tonight. I'm gonna find a movie.
homecanner1
Veteran Member
Its stairsepping this down rather than trying to surf an uncontrolled avalanche, allowing printing presses to run and letting people withdraw cash to tide them over in preps while the system transitions. Least amount of bloodshed, controlled burn
jward
passin' thru
This situation is both not as severe as many think in the short run, but in the longer run possibly worse.
The market is standing on a pretty important support. If the market breaks up computers may bid up a rally. If it breaks down there is a gap until the next of 2 supports.
Monday direction at the close is not guaranteed in either direction but there are some very important players who probably want to see the market have a short term recovery.
The market is standing on a pretty important support. If the market breaks up computers may bid up a rally. If it breaks down there is a gap until the next of 2 supports.
Monday direction at the close is not guaranteed in either direction but there are some very important players who probably want to see the market have a short term recovery.
bw
Fringe Ranger
The stock market is not the economy. Stock prices are froth on the water. The bond market is the current.
Doomer Doug
TB Fanatic
the buzz is the system goes down this week and that is why they are indicting Trump and going full anal retentive fascist mode. Sheesh these clowns are so predictable
Got the OTHER precious metal? lead? he he he
Got the OTHER precious metal? lead? he he he
Trumps fault. What else!!!!
Great Northwet
Veteran Member
Yea I think Hank Paulson said that. I'll look for a link. But please understand folks; this is pretty f**king serious.
While that is both true and something I have said before, it is a general representation of what many people take as an ‘measure’ of the economy.
Please understand me what many people think is absolute BS but then ‘we live in a society’. TB2k’ers are not your average monkey. We are not normal and any attempt to discuss stuff you see here at a family Thanksgiving dinner should only imho re-inforce this idea. Many sheeple would take a short term market rally (either real or manipulated doesn’t matter) as and indication everything is fine.
People want to think, to believe, everything is normal even past the point of overwhelming evidence to the contrary. Remember 9/11 some people above the impacted floors were trying to shutdown programs and logoff trading computers as if they had all the time in the world.
Keep your head level and there will be some incredible opportunities in the chaos.
Great Northwet
Veteran Member
25 People to Blame for the Financial Crisis - TIME
When Paulson left the top job at Goldman Sachs to become Treasury Secretary in 2006, his big concern was whether he'd have an impact. He ended up almost single-handedly running the country's...
thompson
Certa Bonum Certamen
Janet Yellen Leaves The Door Open On Reviving Depression-Era Bank Law
Story by Jonathan Nicholson
Thursday March 16,2023
Last week’s internet-enabled run on Silicon Valley Bank could give a boost to lawmakers wanting to revive a Great Depression-era law that kept the banking system safe, if somewhat dull, for more than six decades.
The idea of reviving the most important parts of the law, named Glass-Steagall after its congressional sponsors, was not even on the radar before the unexpected failure of the $209 billion Silicon Valley Bank.
But in an example of how much SVB’s fall has made some in Washington question their priors, Treasury Secretary Janet Yellen was asked about reviving Glass-Steagall Thursday at a Senate committee hearing and she didn’t shoot the idea down immediately.
“I think there will be plenty of time [when] it will be appropriate to look at what happened and consider whether or not regulatory or supervisory changes are necessary. I look forward to working with you when discussing what happened and what response is appropriate,” Yellen told Sen. Maria Cantwell (D-Wash.).
“But for now, I would like to see confidence restored in the soundness of America,” she said.
I think there will be plenty of time [when] it will be appropriate to look at what happened and consider whether or not regulatory or supervisory changes are necessary.Treasury Secretary Janet Yellen
Glass-Steagall was passed in 1933 as a response to the banking crisis caused by the Great Depression. It set up the Federal Deposit Insurance Corporation, which guarantees bank deposits up to $250,000 per bank per account. But Silicon Valley Bank depositors were guaranteed their money above the $250,000 limit in law once the bank was identified by regulators as important to the entire banking system.
Glass-Steagall is, however, mainly known for separating out commercial banking — checking accounts, CDs, personal and small business loans offered by Main Street banks — from investment banking, where well-known Wall Street bank companies trade stocks, bonds and other securities, underwrite corporate initial public offerings of stock and finance complex mergers and acquisitions.
In 1999, a Republican Congress and President Bill Clinton repealed the most important part of the law that had kept banks from offering securities or selling insurance in addition to banking. The change came after years of heavy lobbying by the financial services industry and in part as a reaction to marketplace changes and the march of technology, which was seen as making one-stop shopping for banking, securities and insurance easier.
Reviving Glass-Steagall has come up before, after the early 2000s accounting scandals including Enron and WorldCom and after the 2008 financial crisis, but it never gained much traction.
‘Capital Formation’
On Thursday, Cantwell, whose state includes the tech-heavy Seattle area that’s home to Microsoft, wondered if Glass-Steagall would have stopped SVB from failing. She also said she wasn’t sure if the current system was the best way to preserve access to capital.
“I want great access to capital formation. I don’t want to see banking that understands startups go away,” she said. As for the current system, though, she said. “I’m not sure that’s the way we get access to capital. Or at least we didn’t have a system that protected us.”
Sen. Ron Wyden (D-Ore.), chairman of the Senate Finance Committee, chimed in to say “I happen to share Sen. Cantwell’s views with respect to this.”
Reinstating Glass-Steagall, or some version of it, would require a vast overhaul of the banking system and probably make the consumer experience of buying financial services more complicated. It would also set advocates against one of the toughest, well-financed industry lobbying efforts in Washington.
Also, as Yellen pointed out to Cantwell, Silicon Valley was not an investment bank and thus not doing the sort of business commingling Cantwell worried about.
But the speed at which SVB fell clearly unsettled lawmakers, leaving some defending their votes on a separate bank dereg bill in 2018, blaming the bank itself and wondering what changes to make. Sen. Mark Warner (D-Va.), who made his fortune in the telecom industry, said that when Washington Mutual, a savings and loan, failed in 2008, it took 10 days for depositors to withdraw $16 billion.
“I’m not sure what regulatory system, anywhere, no matter how much capital and how many stress tests, would have protected any institution from a $42 billion bank run in a single day. That literally, at that point, was 25 cents on the dollar of every dollar that was deposited,” he said.
I’m not sure what regulatory system, anywhere, no matter how much capital and how many stress tests, would have protected any institution from a $42 billion bank run in a single day.Sen. Mark Warner (D-Va.)
The concerns are not necessarily unique to Democrats, either. Sen. Josh Hawley (R-Mo.), a high-profile conservative, told HuffPost Wednesday Glass-Steagall ought to be revisited.
“We used to separate commercial banks and investment banks and, you know, the FDIC only oversaw and the guarantee was only for commercial banks,” he said. “I think we need to bring that rule back.”
Hawley said he worried about a further concentration in the financial services industry because of how SVB was handled.
“We’re going to have three banks in this country. I think that’s terrible, terrible, terrible.”
psychgirl
Has No Life - Lives on TB
“Managed decline”….words straight from the evil one himself.
In 2008 I was living in NH banked at the same location but the name on the bank changed 3 times. Was a brief time each occasion that funds were limited for a few days. Due to “ intergrating computer systems.” Went out tonight to withdraw an extra week of cash just in case the intergration systems are more complex this time.
PrairieMoon
Veteran Member
thompson
Certa Bonum Certamen
EastWest
Senior Member
Wonder if Dennis knows they got out?
- Status