ECON [FINANCE] 2023 Banking Crisis DEATHBURGER Thread 2023.2.0 will UBS actually eat Credit Suisse before the Open???

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20Gauge

20Gauge

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SmithJ said:
It would seem to me that the Credit Suisse deal which puts shareholders in front of bondholders is a change that could really damage banks ability to raise capital. And damage the bond market as well. I may be wrong, but I don't recall shareholders ever being in front of bondholders before.
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GM bankruptcy........

The "shareholders" got theirs 1st and the creditors lost it all..... note: the "shareholders" were the unions...
 
T

TFergeson

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SmithJ

SmithJ

Veteran Member
20Gauge said:
The ones who invested yes!

But the Obama Stockholders "unions" who had nothing in the game, got a chunk of the company
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Well, I'm not sure that I agree that that interpretation is relevant to my statement, but regardless, a change to the system where stockholders are elevated about bondholders has got to have a major impact on firms abilities to raise funds, in my opinion.
 
20Gauge

20Gauge

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SmithJ said:
Well, I'm not sure that I agree that that interpretation is relevant to my statement, but regardless, a change to the system where stockholders are elevated about bondholders has got to have a major impact on firms abilities to raise funds, in my opinion.
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No argument
 
20Gauge

20Gauge

TB Fanatic
The Hammer said:
Credit Suisse down 52%.

First Republic down 15%.

Dow up 364.

The question is, how long will the broader rally last? Could fizzle out by day's end...
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Question:

Did not Suisse get 54 billion from the Swiss and then got bought out???

That is what we are hearing locally, but no 2nd source on that one.....

If true, not a good sign
 
amazon

amazon

Veteran Member
Has anyone thought about "borrowing" out of your 401k to at least hold on to some of it? I realize worst case scenario you'd have to pay back or pay taxes. Just putting in an account to see how things play out.
 
SmithJ

SmithJ

Veteran Member
20Gauge said:
Question:

Did not Suisse get 54 billion from the Swiss and then got bought out???

That is what we are hearing locally, but no 2nd source on that one.....

If true, not a good sign
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They "borrowed" 54 billion from the Swiss National Bank (SNB). Then as part of this buyout the SNB issued a $100 billion line of credit to UBS to support the buyout.

There's been no reporting that I saw that provides details other than that. I imagine that the $100 billion includes the $54 billion loaned last week (and that is why the amount is so high - to provide further liquidity). But I do not know that.
 
20Gauge

20Gauge

TB Fanatic
SmithJ said:
They "borrowed" 54 billion from the Swiss National Bank (SNB). Then as part of this buyout the SNB issued a $100 billion line of credit to UBS to support the buyout.

There's been no reporting that I saw that provides details other than that. I imagine that the $100 billion includes the $54 billion loaned last week (and that is why the amount is so high - to provide further liquidity). But I do not know that.
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Confusing to say the least

Thank you
 
SmithJ

SmithJ

Veteran Member
www.wsj.com

WSJ News Exclusive | Jamie Dimon Leading Efforts to Craft New First Republic Bank Rescue Plan

The JPMorgan Chase chief executive is leading discussions with the chief executives of other big banks about fresh efforts to stabilize troubled First Republic Bank.
www.wsj.com www.wsj.com

Jamie Dimon Leading Efforts to Craft New First Republic Bank Rescue Plan​

Big-bank CEOs are discussing a capital infusion in troubled lender that could boost confidence in financial system​

By Ben Eisen
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, AnnaMaria Andriotis
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and David Benoit
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Updated March 20, 2023 at 12:05 pm ET
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The discussions, while preliminary, have focused on how the industry could arrange for an investment that would boost the bank’s capital, according to people familiar with the matter. Among the options on the table, the people said, is an investment in First Republic by the banks themselves.

Eleven big banks banded together last week to deposit $30 billion in First Republic in an effort to restore confidence in the lender. The San Francisco-based bank’s customers have withdrawn some $70 billion since the collapse of Silicon Valley Bank earlier this month, The Wall Street Journal previously reported.

The plan could involve the banks converting some or all of the $30 billion in deposits into a capital infusion, some of the people said.
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The situation is fluid and fast-moving. First Republic is facing intense pressure to reassure investors that it is viable. Its stock has lost more than 80% in March. It fell another 17% Monday morning to below $20, touching a new all-time low.
A sale or outside capital injection are also among the options on the table, people familiar with the matter said.

Mr. Dimon and his fellow CEOs are trying to instill confidence in a banking system facing its worst crisis in 15 years. In tandem with federal regulators, Mr. Dimon led last week’s effort to shore up First Republic, according to people familiar with the matter.

Mr. Dimon and JPMorgan have a long history of stepping into the breach during crises. JPMorgan bought Bear Stearns after it failed in 2008, then took on Washington Mutual Inc.’s operations.

In the Panic of 1907, a semiretired J. Pierpont Morgan helped stave off a national financial crisis when he rallied his fellow bankers to shore up a number of lenders that had seen a run on their deposits.

The recent banking turmoil has taken a heavy toll on First Republic. Deposit outflows slowed Friday after the bank-led rescue, yet First Republic still has a big hole left to fill on its balance sheet.

“First Republic Bank is well-positioned to manage short-term deposit activity,” a bank spokesman said Sunday.
The rapid collapse of Silicon Valley Bank, a bank that catered to startups and their investors, has investors and customers worried about other regional banks that have a similar profile. Like SVB, First Republic’s large share of uninsured deposits makes it susceptible to a run.

Rachel Louise Ensign contributed to this article.
 
John Green

John Green

Veteran Member
amazon said:
Has anyone thought about "borrowing" out of your 401k to at least hold on to some of it? I realize worst case scenario you'd have to pay back or pay taxes. Just putting in an account to see how things play out.
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Does your 401k offer a US Treasury Money Market Fund ?
 
Hfcomms

Hfcomms

EN66iq
Bubble Head said:
Tomorrow could be a lock down if they arrest Trump. They have to remove him and the bank situation along with over 100 million pissed of Americano can put a lot into play.
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If Trump is arrested watch what the left hand is doing while both the left and the right are glued to the TV for the spectacle. Great time for another bank failure or two to be announced on the crawler at the bottom of the screen.
 
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