ECON [FINANCE] First Deathburger Thread of the 2023 Banking Crisis. ALL welcome (hall passes at the door). Have At It.

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raven

TB Fanatic
Is this a recession or not?
Is this an economic disaster or is the economy booming?
Is this a financial disaster or is this "money for nothing, chicks free"?
Is risk increasing or decreasing?

Seems pretty straight forward to me.

The news media, government, and Federal Reserve are not likely to tell you the truth.
 
BUBBAHOTEPT

BUBBAHOTEPT

Veteran Member
rondaben said:
For that matter, why not maximize the charade and just stop offering checking and savings to consumers at all.
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I believe that is exactly what the Fed Coin will do. Whether in actuality or de facto, your new Digital Fed Dollar will be in your Fed checking and savings account right on your precious smart phone… :kaid:
You got dollars? No problem, spend ‘em while you got ‘em, cause the Fed will smoke ‘em when they get ‘em… No confiscation, no pressure, no bank runs anymore…
 
bw

bw

Fringe Ranger
Milk-maid said:
During the Great Depression, there were ups and downs too... people believed it was all over and then it would slam back down before the final crash came. It took weeks, if not months, to crash completely.
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Several years I think.
 
T

TFergeson

Non Solum Simul Stare

First Republic Bank Shares Jump On 'Big Bank' Deposit Bailout Plan​

BY TYLER DURDEN
THURSDAY, MAR 16, 2023 - 11:27 AM

Update (1300ET): CNBC's David Faber is reporting that the large banks are planning - as a group - to deposit around $20 billion of their own cash with First Republic.

1678986859531.png

JPMorgan, Citigroup, BofA, and Wells Fargo are among the banks in talsk over the despoit of their cash into First Republic. Morgan Stanley and Goldman Sachs are also reportedly involved along with US Bancorp and PNC Financial Services.


This makes some sense as the 'big banks' have lots of reserves relative to assets...

1678986883639.png
As a reminder, JPM and the "Big 4" got even bigger recently thanks to small bank deposit run from past week, which they are now returning as deposits back into those troubled banks.

The Wall Street Journal reports, according to sources, that not all banks will contribute the same amount to the pool, but each one that is participating so far will likely put in at least $1 billion.

FRC shares are jumping (and halted) on the headlines...



* * *

Update (1230ET): What did they know and when?

As chatter continues to build of some bailout for First Republic Bank this week, after the company's share price has collapsed, The Wall Street Journal reports that top execs at the bank sold millions of dollars of company stock in the last two months... but did not report the sales to SEC.

A gander at the SEC filings show only one small 'insider sale' recently (in November)...



However, executive have been selling for months, as unlike insider sales at most companies, those at First Republic aren’t required to be reported to the Securities and Exchange Commission.

Instead, the trades were reported to the Federal Deposit Insurance Corporation.

A handful of banks currently file these forms to the FDIC, which posts them on a website where the documents can be accessed one at a time.

As of Wednesday, First Republic is the only company listed on the S&P 500 index that doesn’t file its insider trades with the SEC, a Wall Street Journal analysis shows.

In all, insiders have sold $11.8 million worth of stock so far this year at prices averaging just below $130 a share.



Finally, we would expect a knock at the door if we were them as the DoJ is already looking at insider sales made by Silicon Valley Bank executives a week before that bank’s failure,

* * *

Update (1100ET): The Wall Street Journal reports that JPMorgan and Morgan Stanley are among a group in talks to bolster First Republic Bank.

According to people familiar with the matter, several large banks are discussing a potential deal with First Republic Bank that could include a sizable capital infusion to shore up the beleaguered lender.

Any deal would need the blessing of regulators and will be driven at least in part by the bank’s highly volatile stock.

FRC shares are bouncing hard off the earlier lows (halted numerous times)...



That headline sent the US Majors soaring...



* * *

As we detailed earlier, First Republic Bank shares have plunged this morning, extending a week-long rout, as executives consider courting a buyer to prop up the bank in the wake of the collapse of several regional peers.

Bloomberg reports that, according to people familiar with the matter, the San Francisco-based bank is said to be exploring strategic options that include a sale. The firm is also weighing options for shoring up liquidity, some of the people said.

“Normally, a headline of a potential sale would support the stock,” Christopher McGratty, an analyst at Keefe, Bruyette and Woods, wrote in a report.
“However, the potentially significant deposit outflows post-SIVB failure likely leave FRC in a tough spot.”
“Any potential sale would likely be a tough outcome for existing shareholders, given mark-to-market accounting on loans,” McGratty wrote.
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FRC shares are down over 30% this morning, back at post-SVB lows...



First Republic saw its credit rating was cut to junk by S&P Global Ratings and Fitch Ratings.

“First Republic’s options have narrowed following deposit outflow, a sharp share-price decline and recent downgrades from ratings agencies, while a potential sale of the bank could center on the attractive wealth-management business,” Herman Chan, an analyst at Bloomberg Intelligence, wrote in a note.
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But, but, but President Biden said:

"Americans can rest assured that our banking system is safe. Your deposits are safe."
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It's not over.

First Republic Bank Shares Jump On 'Big Bank' Deposit Bailout Plan | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com www.zerohedge.com
 
SmithJ

SmithJ

Veteran Member
TFergeson said:

First Republic Bank Shares Jump On 'Big Bank' Deposit Bailout Plan​

BY TYLER DURDEN
THURSDAY, MAR 16, 2023 - 11:27 AM

Update (1300ET): CNBC's David Faber is reporting that the large banks are planning - as a group - to deposit around $20 billion of their own cash with First Republic.
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Don't they mean they are about to deposit $20 billion of THEIR DEPOSITORS cash? I mean, it's not really their money, right? No matter what the depositor agreement says.....
 
vector7

vector7

Dot Collector
The Hammer

The Hammer

Has No Life - Lives on TB
vector7 said:
JANET YELLEN: "I consider high inflation the number one economic problem that all of us need to face and address...I was very supportive of the American Rescue Plan."

REMINDER: The Democrats' $1.9 TRILLION "American Rescue Plan" fueled inflation!
RT 30secs
https://twitter.com/i/web/status/1636380363240112133
View: https://twitter.com/SteveGuest/status/1636380363240112133?s=20


Reminds me of this...
RT 21secs
View: https://youtu.be/G7RgN9ijwE4
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I remember Greenspan used to be indecipherable. But Yellen just spouts the undiluted stupidity.
 
D

Dozdoats

On TB every waking moment
View: https://www.youtube.com/watch?v=gAgpXUCQIM0

20 More Banks on Shaky Foundation While JP Morgan Profited $1B on Metals
RT 28:22
The money gun comes out ...

5,336 views Mar 16, 2023
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They want you to think that it's over, that the new facility that the Fed magically created. They want you to think that that has fixed everything. But all they ever do is change the way they account for things. And what really happens is the system gets more vulnerable because this whole thing hinges on whether or not you believe their lies. And you come here. I'm telling you the truth. And not only am I telling you the truth, but I'm giving you the tools to do your own due diligence. Don't take my word for anything, but don't take theirs. Because when you do that, you leave everything vulnerable and exposed. And I'm going to expose the truth. And I'm going to help you not be vulnerable.

Chapters:
0:00 Introduction
1:52 SVB Balance-Sheet
6:55 CEO Stock Selloff
10:00 20 Banks Potential Securities Losses
18:00 FDIC Banking Profile 2019-2022
22:08 Gold Premiums
 
N

night driver

ESFP adrift in INTJ sea
I will make sure I have plenty of hardwoods, AND MESQUITE!!! CAN NOT forget the mesquite this time.
There will be plenty of ground beef, and a pile of brisket over on the prep sideboard Sunday afternoon for DEATHBURGER 2023.2 this weekend. It APPEARS we're going to need it all.


And while I am doing the prep-work in Cyber-life, I am calling on EACH and EVERY ONE OF YOU in Meatspace to spend some time Friday looking through your pantry cupboard, or cold room, or carrot and root crop sandbox, and freezer to make SURE you will have AT LEAST enough for a decent Easter Feast, and a good, strong Planting Finish celebration, with enough food to get you through the spring harvest and into the summer harvesting and canning time.

PLEASE look AHEAD and PREPARE, people. I don't want to wander all alone through these Forum Halls, with only the echoes of the heels of my Justins on the Parquette floor, echoing down the long, dim, empty halls.

DO NOT SCREW THIS UP, PEOPLE!!! Starvation is a TERRIBLE WAY TO GO!!! DON'T GO THAT WAY!!
 
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