https://finance.yahoo.com/m/4e1bf348-1bbc-3abb-bf60-65613f089253/pacwest-other-regional-bank.html
"A day after JPMorgan Chase (ticker: JPM) agreed to take over First Republic Bank (FRC), other regional banks have found their stocks plummeting. It isn’t yet clear what is behind the selling."
The remainder of the article is behind a paywall but one regional bank referred to, PacWest Bancorp, is down over 25% in mid-day trading.
“Somebody will take those losses.”
Nope. If they can maintain a profit they can hold the securities till they return to par.
Gurgle, gurgle, gurgle.........................
Had governments not intervened in a major way in the 2008 liquidity crisis, what’s the worst that could have happened anyway? Anyone have any learned insight into banking and financial matters regarding this?
we have had rising interest rates in the past
the volcker increases in the 80s were much more dramatic
but the banks did not collapse
what is different this time?
Rate pause likely.
“President Joe Biden on Monday finally requested that House Speaker Kevin McCarthy (R-CA) negotiate the debt limit during a meeting to be held on May 9 to avoid default, a move that contradicted the White House’s previous official position.”
No increasing spending = no need for rate increase considering banks are already failing under the strain. Need a pause to catch up on liabilities.
Emperor dopey joe’s decree that those with good credit be punished in order to compel banks to loan to those with bad credit will surely save the banks. No?
.... And this is yet another reason why they had to get rid of Trump. He disrupted their planned economic destruction timetable.
Bush and Obama both agree on this......but rah rah, go team R!.....”Any Republican is still better than any Democrat’....yeah, if you’ve got $h*t for brains, I guess.
Debts need to be cancelled.
Soon.
You should have seen the balance sheets in the early 1980’s when prime hit 21%. If they have stable funding, like most community banks with core deposits, investment depreciation does not matter much because they have the ability to hold those investments to maturity. The problem with these big banks is that they have a very significant portion of their balance sheets funded with short-term borrowings, some even overnight funding. Allowing the big banks to get bigger and bigger is insanity, putting the whole economy at risk. When I became a bank examiner in 1980, there were over 14,000 banks in this country. There are less than a third of that now. Yeah . . . the big boys know what is best for us . . . .
“You will own nothing and be happy.”
.