Posted on 03/10/2023 6:59:20 AM PST by Kaiser8408a
Ah, memories! I still remember the 2000s housing bubble and subsequent financial crisis and bank bailout from 2008/2009 like it was yesterday. And I remember Representative Barney Frank (D-MA) claiming that the Dodd-Frank legislation would end bank bailouts. I laughed out loud when I heard Mr. Frank utter those preposterous words.
Now here we are again with yet another bank contagion. First it was Silicon Valley Bank, now it is First Republic Bank (down -28% at opening).
And there is a trading halt on First Republic. But YoY growth on FRC’s earnings of -34.7% is horrendous.
(Excerpt) Read more at confoundedinterest.net ...
Ernie the cab driver-—”I’ve never seen one before but that has all the earmarks of a run...you better get your money out of the bank before it’s gone”
George Baily-—”Stop the car....”
Chase bank is actually up a little
$212B assets...thats a big one. I wonder what their exposure is to this stuff? They read as if they are almost a “private” bank.
Here is their “investor” presentation.
https://ir.firstrepublic.com/static-files/3b4ae05a-2266-4d02-a1c3-983384454708
They don’t don’t seem “crazy.”
We had a discussion yesterday about economic numbers released by the government and how they were skewed and intentionally misleading, today the government announced job numbers and they were “surprisingly” very good, which will prompt the Federal Reserve to continue raising interest rates and these bank contagions are result of misleading economic statistics coming from the government
Let it Burn, NO BAILOUTS. These people HATE us.
Banks bought treasuries at low interest rates. Now that the borrowing and spending caused inflation, expectedly, those holding those low rate treasuries lost a lot of money due to the rate increase. Government manipulation of the economy.
My daughter has $600k mortgage at 3.75%.
How does the lender handle that when bank CD’s are paying higher rates than 3.75%?
The inverse Jim Cramer effect is alive and well, less than one month ago he was touting this company on CNBC
https://twitter.com/watcherguru/status/1634039856924860416?s=46&t=z9JhsJSWwNkmble_RiGVIQ
Chase and other large banks in the “too big to fail” category gain a competitive advantage in times of financial stress and dislocation.
Wall Street’s 4 top banks just had $55 billion wiped off their market value in a single day
They are a publicly held bank with a business specialized in “private banking” (for HNW individuals) and, especially, similar, limited, commercial markets. It is San Fran-based, so with an in some ways similar concentration of exposure as SVB.
No worries. No bailouts. It will be bail-ins. The bank will just take your money. Because of bills like Dodd-Frank, the money you deposit in the bank becomes the bank's property. If the bank is feeling charitable, they might offer you some "shares" in the bank.
The next ugly development is the US Dollar is repudiated as legal tender. Look for the term "force majeure". Businesses unable to pay employees, contractors or suppliers.
They just pay less than 1% for savings, mm & checking accts. Sometimes, a LOT less.
Folks! This is right out of the Fed’s play book. Hang on! Be assured that the taxpayers will be made to bail out these incompetent fools. It is ‘deja vu’ all over again.
The operative word is 'bailout' of the biggest and wealthiest banks when they made dumb, and or fraudulent business deals.
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