Posted on 05/05/2023 4:39:44 AM PDT by CFW
If Jamie Dimon was pondering a career change as a fortune-teller, he’d be wise to stick to the day job. On the other hand, if someone of Dimon’s stature could be so wrong about the banking turmoil that continues to sweep across the US, a cynic might ask whether he was still the right person to be running one of the world’s largest financial institutions, particularly when that organisation is right at the centre of Government-led efforts to prop up the whole system.
Having ridden to the rescue of California lender First Republic over the weekend, JP Morgan’s superstar boss had a message for financial markets: its shotgun takeover of First Republic heralded the end of the crisis. He should know better than to be drawn into the realms of speculation about things he has no control of but then Wall Street is so deferential to figures like Dimon that they start to believe they can walk on water.
(Excerpt) Read more at finance.yahoo.com ...
https://finance.yahoo.com/news/pacwest-leads-regional-bank-stock-080751366.html
We will see how long that lasts.
There is no “run” on the banking system as a whole.
Deposits are not being withdrawn. They are just being moved from one bank to another.
This will continue until there are lots fewer banks. There is no reason to have more banks than auto makers or airlines.
It won’t last. This is a purposeful consolidation of the regional banks....we’ll have 4-5 mega banks by 2025. Easier to control.
Jamie Dimon believes in return to the office and he can show the gains made at his large bank.
His bankers will work to get the offices his bank has mortgages on filled back up.
“Everyone in the banking space is ‘a little too happy’ right now: Top money manager”
“As banking execs put on a happy face to try and calm a jittery financial system, there is a realist among the smiles: new TCW Group CEO Katie Koch.
“One of my main takeaways is that people look a little too happy for me here,” the former Goldman Sachs money manager said on Yahoo Finance Live [video link included] at this week’s Milken Conference.”
Thing will get really serious when the “bad loans” part of the problem comes to the surface in the coming months.
“There is no reason to have more banks than auto makers or airlines.”
why not?
I noticed a few years ago that there are as many bank books a cure as pharmacies. I mentioned this to my husband as we were driving in a city
Negative interest rates for them but not for us.
This continued under republican leadership. Should that tell you something.
“This is a purposeful consolidation of the regional banks....we’ll have 4-5 mega banks by 2025. Easier to control.”
The underlying problem is the lack of sufficient lending capability which caused the troubled banks to buy low income investments.
Consolidation will generally make the lending capability shortfall worse.
All by design. You see, they want us poor, and they want us dead.
Interesting observation. Can you post it in English?
The 2008 meltdown resulted in $526 billion in bank bailouts. As of yesterday, we have reached $586 billion in bailouts, the three banks ranked the second, third and fourth largest failures in US financial history….Washington Mutual in 2008 was the largest in history.
So, the three recent bank bail outs already put us in record loss territory, we are just getting started.
“Potter isn’t selling — Potter’s buying.”
— George Bailey
What Yellen might do is to buy up low interest national debt off banks having a deposit run at a discount.
That would send the federal debt downward.
For example if $1 billion of 2% debt was bought at 6% discount, the national debt would decrease by $60 million.
Banking is an information technology and software intensive business. The major banks can afford to develop their own software and run their own data centers. Small banks either buy services from other processors or they buy specialized banking software from a small collection of vendors at very high licensing and maintenance costs.
So economies of scale now apply strongly to banking operations.
There are also scale effects for the big banks, since a large percentage of the population has credit cards or other accounts with the big banks. Thus they don’t have to depend exclusively on the credit reporting agencies, but instead have their own information on who is creditworthy.
Exactly. It’s about enforcing ESG on all of us. First they must eliminate all the small and medium size banks they don’t control in flyover county.
Perfect case in point: If you sign a 30-year fixed-rate mortgage, the rate is only fixed for one party — the borrower. The borrower can refinance at any time if interest rates decline, but the lender is stuck for the entire term of the loan if rates rise.
Might be a good tagline. I might take it.
“bank books a cure as pharmacies”
“$526 billion....$586 billion”
Adjusted for inflation, that $586 billion would buy about what $200 billion would in 2008.
Under Biden, our dollars are becoming like lira.
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