Posted on 03/11/2023 1:14:12 PM PST by RomanSoldier19
SVB Financial Group faced a perfect storm, but there are plenty of other banks that would face big losses if they were forced to dump securities to raise cash
Silicon Valley Bank has failed following a run on deposits, after its parent company’s share price crashed a record 60% on Thursday.
Trading of SVB Financial Group’s SIVB stock was halted early Friday, after the shares plunged again in premarket trading. Treasury Secretary Janet Yellen said SVB was one of a few banks she was “monitoring very carefully.” Reaction poured in from several analysts who discussed the bank’s liquidity risk.
(Excerpt) Read more at marketwatch.com ...
Twenty isn’t a few. The fugly Ukrainian humping piece of shite, Janet Yellen said a few. She’s frickin, incompetent.
Pay walled but use https://12ft.io/ to work around it
Elections have consequences.
Inflation has consequences.
Inverted Yield Curves have consequences.
As if the crisis 15 years ago, bank shenanigans, FTX (somewhat) and now SVB wasn’t enough? Get your money out of banks and at least maybe put your cash into a credit union. Borrow all you want from banks (if it’s worth it) but stay the heck away from banks if you need something to hold YOUR money.
More “Wall Street”:
https://getyarn.io/yarn-clip/8a16b429-5d7d-4243-9157-70622e4f4054
“Dog with fleas”.
dog.with.fleas
Banks on list
Customers Bancorp Inc. CUBI, -13.11% West Reading, Pa.
First Republic Bank FRC, -14.84% San Francisco, Calif.
Sandy Spring Bancorp Inc. SASR, -2.91% Olney, Md.
New York Community Bancorp Inc. NYCB, -5.99% Hicksville, N.Y.
First Foundation Inc. FFWM, -9.11% Dallas, Texas
Ally Financial Inc. ALLY, -5.70% Detroit, Mich.
Dime Community Bancshares Inc. DCOM, -2.81% Hauppauge, N.Y.
Pacific Premier Bancorp Inc. PPBI, -1.95% Irvine, Calif.
Prosperity Bancshares Inc. PB, -4.46% Houston, Texas
Columbia Financial Inc. CLBK, -1.78% Fair Lawn, N.J.
And the “chump twenty” are?
thats how it all ends in the end
Got ten more?
Anybody who bought bonds in the last 15 years is underwater. Portfolio managers who pleaded with clients that 60 - 40 balanced portfolios were conservative didn’t understand that money was free and had nowhere else to go. They should be fired.
Comerica Inc. CMA, -5.01% Dallas -$3,742 $5,181 -41.9% $85,406
Zions Bancorporation N.A. ZION, -2.44% Salt Lake City -$3,112 $4,893 -38.9% $89,545
Popular Inc. BPOP, -1.56% San Juan, Puerto Rico -$2,525 $4,093 -38.2% $67,638
KeyCorp KEY, -2.55% Cleveland -$6,295 $13,454 -31.9% $189,813
Community Bank System Inc. CBU, -0.22% DeWitt, N.Y. -$686 $1,555 -30.6% $15,911
Commerce Bancshares Inc. CBSH, -1.61% Kansas City, Mo. -$1,087 $2,482 -30.5% $31,876
Cullen/Frost Bankers Inc. CFR, -1.08% San Antonio -$1,348 $3,137 -30.1% $52,892
First Financial Bankshares Inc. FFIN, -0.90% Abilene, Texas -$535 $1,266 -29.7% $12,974
Eastern Bankshares Inc. EBC, -3.16% Boston -$923 $2,472 -27.2% $22,686
Heartland Financial USA Inc. HTLF, -1.26% Denver -$620 $1,735 -26.3% $20,244
First Bancorp FBNC, -0.31% Southern Pines, N.C. -$342 $1,032 -24.9% $10,644
Silvergate Capital Corp. Class A SI, -11.27% La Jolla, Calif. -$199 $603 -24.8% $11,356
Bank of Hawaii Corp BOH, -6.15% Honolulu -$435 $1,317 -24.8% $23,607
Synovus Financial Corp. SNV, -2.91% Columbus, Ga. -$1,442 $4,476 -24.4% $59,911
Ally Financial Inc ALLY, -5.70% Detroit -$4,059 $12,859 -24.0% $191,826
WSFS Financial Corp. WSFS, -2.78% Wilmington, Del. -$676 $2,202 -23.5% $19,915
Fifth Third Bancorp FITB, -4.17% Cincinnati -$5,110 $17,327 -22.8% $207,452
First Hawaiian Inc. FHB, -3.48% Honolulu -$639 $2,269 -22.0% $24,666
UMB Financial Corp. UMBF, -3.35% Kansas City, Mo. -$703 $2,667 -20.9% $38,854
Signature Bank SBNY, -22.87% New York -$1,997 $8,013 -20.0% $110,635
Bonds are ok if as an individual you have a long enough timeline to wait until maturity—but of course the longer the term the more opportunity is lost.
The problem today is that we may get both a stock market and a bond market crash at the same time—hard to do but with a decade of free federal reserve money even the impossible becomes possible.
For businesses who may need cash at any time bonds can be a disaster waiting to happen.
My biggest problems with credit unions have been how tight their rules have been with lending. It’s been really frustrating sometimes—but that should say something.
I have way more cash stashed outside my bank than what I have in it. I keep just enough in the bank to pay my monthly bills.
Not that they shouldn’t have called attention to it, but MarketWatch & the eager Mr. van Doorn have pretty much sealed the fate of the ten banks they identified as “on the chopping block”.
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