Posted on 03/23/2023 4:07:26 AM PDT by EBH
The legendary investor indicates that more than 60% of Comerica and U.S. Bancorp deposits are uninsured.
If in recent days, observers had focused on First Republic Bank (FRC) - Get Free Report, the prominent investor Michael Burry is sounding the alert on two other banks: Comerica (CMA) - Get Free Report and U.S. Bancorp.
In a chart, the legendary investor names what he considers the banks most vulnerable to a bank run. These are also among the firms with the most unrealized losses in their portfolios of Treasury bonds and municipal bonds.
It appears from the chart/guide, as Burry called it, that Silicon Valley Bank and Signature Bank in New York -- two banks closed by regulators -- were the institutions that had the most uninsured deposits. That means customers holding more than the FDIC insurance limit $250,000 in their accounts.
First Republic is the No. 3 bank most dependent on wealthy customers. Next come Comerica and U.S. Bancorp; more than 60% their depositors are uninsured, according to Burry.
The investor is dubbed 'Big Short' by Wall Street because he became a legend after he successfully bet against the subprime mortgages that caused the 2008 financial crisis.
(Excerpt) Read more at msn.com ...
“U.S. Bancorp”
I’m sure it was just a coincidence that US Bank just cold called me inquiring if I wanted to open a CD with a fairly attractive rate, something they never had before. Rut Ro.
Fortunately I keep just enough in that account to pay the monthly bills.
Rock and hard place, inflation v bank failures. The great thing with the traitors and dipshits running DC, we get both.
And Wells Fargo just took on US Banc and dumped BOA. LOL....It is going to get wild.
Watch out below!!
I’ve had four banks in past month quote me cd rates...all 9 months to 12 months. Rates are exceptionally poor for 2 years or more in the 4 banks.
He’s wrong quite a lot. He lost a lot of money on a bond bet.
Went to pay my Equity Loan...they handed me a flyer with their rates on them! I laughed.
I’ve been deluged with loan offers over the last week with banks just begging me to borrow $
I’ve no interest in such unless they are willing to loan me at least 20 million in which case I’ll sign today
I had a bank quote me CD rates for 3-6 month rates....all were .05 percent (weren’t even interested in 1-percent rates). Short term CDs were of the toxic variety for them.
I’ve not seen this type of bank behavior ever. All were favored for a one-year CD...to fit into some type of future strategy. They can’t even explain how this works for me, or for the bank itself.
Why wouldn’t you(or anybody) just buy a T-Bill from:
www.treasurydirect.gov
The most recent auctions have been in the 4.8-5.2% range for 17 to 26 weeks. I bought two yesterday.
I also bought another Series I savings bond @ 6.89%.
I did this to lower the amount I had in Citizens Bank where I have my checking a savings accounts.
“Rates are exceptionally poor for 2 years or more in the 4 banks.”
We have an account with a life insurance company where we left the death benefit payment they owed us, with them, for a rate of 3% from 2013 to present. You could make withdrawals, but could not deposit additional funds.
3% was better than anywhere else at the time. Looking to move those funds to an FDIC insured institution now, and received a quote from my bank for CDs:
They are offering 4.5% for 10 months, or 4% for 15 months?!?
Since when do you get less interest for the longer term?
Never underestimate Joe’s ability to F@(k things up — Barack Obama
My Facebook page currently is full of ads from various regional banks and credit unions offering CDs at 3-5%.
Currently as I scroll right now on my phone:
Ledyard National bank 3%
Cambridge Trust 5% on 11 month CD
Hanson Credit union 4.25% 11 month CD
Thanks for that comment.
The amazing thing about The Big Short (as I recall from the book) is that it was very obvious to many people that there was a big structural problem with the financial markets. But how could one make money on that information?
Getting the timing right was a full-time job of having the information at the right time. And then knowing how to leverage/hedge one’s bets.
Michael Burry has had some big successes. But you seem to say that he had his share of misses as well.
I thought “Margin Call” was better than “The Big Short”.
Nothing to fear, Biden will be flying to their rescue.
“You will own nothing but be happy.” Listen to your betters.
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