Posted on 03/14/2023 8:39:35 AM PDT by SoConPubbie
It doesn’t matter... There are enough stupid people who don’t see the corrections and other news agencies covering the truth of the matter...
Moody’s sees harder times ahead for all US banks and puts six on ‘downgrade’ watch
By Matt Egan, CNN
Moody’s warned it could similarly downgrade First Republic Bank (FRC), Zions (ZION), Western Alliance (WAL), Comerica (CMA), UMB Financial (UMBF) and Intrust Financial. The firm cited the “extremely volatile funding conditions for some US banks exposed to the risk of uninsured deposit outflows.”
A Brinks armored truck sits parked in front of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S. Federal Deposit Insurance Corporation. Prior to being shut down by regulators, shares of SVB were halted Friday morning after falling more than 60% in premarket trading following a 60% declined on Thursday when the bank sold off a portfolio of US Treasuries and $1.75 billion in shares to cover declining customer deposits.
Why Silicon Valley Bank collapsed and what it could mean:
The move comes after shares of regional banks got clobbered on Monday even after the US federal government stepped in with a massive intervention designed to protect depositors and prevent further bank runs. Regional bank shares rebounded in premarket trading on Tuesday.
For San Francisco-based First Republic, Moody’s pointed to the bank’s “high reliance on more confidence-sensitive uninsured deposit funding,” high unrealized losses in its bond holdings and a “low level of capitalization” relative to its peers.
First Republic has a high amount of deposits above the FDIC’s insurance limit, Moody’s said, noting this makes the bank’s funding profile “more sensitive to rapid and large withdrawals from deposits.”
After plunging 62% on Monday, First Republic shares climbed 56% Tuesday.
https://www.cnn.com/2023/03/14/investing/moodys-us-banks-downgrade/index.html
No doubt Brandon blames Trump for when he has an “accident” in his pants.
He’s so full of sh!t it’s coming out his ears.
The ones saying they have to make climate change a top priority?
It seems there's an organized effort to get this talking point out there.
Obama did the blame thing to Bush....the Rat playbook.
Fix the blame, not the problem.
Exactly. Idiots see the headline “Trump’s fault” and never see the correction, apology or retraction (none of which happen in the MSM).
Yes his BLAME card has just been stamped VOID.
Such a pathetic claim. Biden forgot to add a claim that he invented banking and created the entire banking regulatory scheme when he was still in high school.
The ditzy Dems have to blame someone.
From the article:
“Trump signed a bipartisan bill in 2018 that loosened some of the restrictions put forward in the Dodd-Frank Act of 2010. The bill was the work of several years of negotiations between GOP and Democrats senators.”
>>>
“The bill Trump signed was introduced by GOP Senate Banking Committee Chairman Mike Crapo and Democrats Heidi Heitkamp, Jon Tester, Joe Donnelly, and Mark Warner.”
Biden’s azz needs to be in jail. He’s a lyin’ biatch.
CRYPTO is at the genesis of all the bank problems.
Banks involved seem to have had alot of activity with CRYPTO.
THAT is a house of cards-—and:
Biden wants paper/coins to go away in favor of DIGITAL MONEY.
MUST get CRYPTO & DIGITAL money completely out of the picture. MUCH too dangerous.
To the extent these banks were involved in crypto-currencies, they were the free/open market version of them. What Biden & the Dems are pushing is for a digital US dollar, and then regulating out of existence the others (Bitcoin, Ethereum, Dogecoin, etc.).
But it's very unlikely crypto-currencies had anything to do with these bank shut-downs. For the cause of them, you need only to look back to the onset of the pandemic, and how our ruling/elite class reacted to it.
Pandemic starts (thanks CHINA!), spreads, and is not understood by governments. They react poorly, including shut-downs, forced vaccinations, and mandated social distancing (to "stop the spread").
Force isolation and business shut-downs leads to worldwide shortages of goods. As we all know, inflation is caused by too much money chasing too few goods. So if goods decline in availability, and there's not a commensurate reduction in demand (reduction in spending, then inflation starts - and it did.
The Dems in charge then did the exactly wrong thing - they threw money around like confetti. You now have even more money chasing the still-scarce goods. This is akin to throwing gasoline on a fire. Why did they do this? Simple - to remain in power. The alternative was to let the effects of the shortages, shutdowns and slowdowns force the US into recession and high unemployment. So much better to tell the voting public that all is well, we've saved the economy, and this inflation is "transitory".
Of course, the Fed then needs to jump in to tame inflation, so they raise interest rates. A lot. But the Dems keep throwing more money around (to prevent a recession, don't you know). So the Fed hikes more and more.
You do know how the banking model works, right? They take in deposits, for which they pay little or no interest. They are "demand deposits", meaning they are highly liquid and can be withdrawn any time. The banks then lend money back out at higher rates, and with longer terms. Think 5-year auto loans, 30-year mortgages, etc. The banks' income is the spread between the higher-rate lending rate and the lower-rate deposit interest.
The Fed's continual rate hikes leads to an "inverted yield curve" - that is, long-term rates are higher lower than short-term rates. Guess what happens to a bank's income model when they have to pay depositors more, and they can't charge borrowers as much? It breaks. Then, when depositors come to withdraw their funds, the bank will first pay out with ready reserves - effectively cash, or cash-equivalents that can be quickly liquidated. But if demand for withdrawls exceeds the ready reserves, then other assets have to be sold off. In every failing bank so far, the value of these other assets had declined - often substantially. So they had to take losses on these assets to meet the liquidity demands of the depositors. Then rumors of liquidity issues begin, and more depositors demand their money back - a classic run on the bank. At this point, the banks were in a death-spiral, and there was nothing that could be done but to shut them down.
In summary, the initial inflation was caused by lib/elite reaction to the pandemic; Dem's endless spending exacerbated the inflation; Fed rate hikes broke the bank spread-income model; banks failed.
“You have great faith in the American people. Look who they voted for in 2020.”
Exactly. We criticize Biden, Obama, the Clintons, etc, but who empowers them? Americans who vote for them or won’t take the time to vote against them.
And here I thought that congress changed the laws and Trump just signed what congress passed.
Always blame Trump for everything seems to be the motto for the Democratic Party.
More lies from this POS**. The regs rolled back did nothing in this case, just like the train wrecks.
Somebody other than TCarlson has to grow a pair and start calling them on as liars. Not “mistaken”, liars.
The ones saying they have to make climate change a top priority?
Yes, they will point to no specific regulation let up that brought SVB down, only a vague accusation the media will run with and the lemming lefties will buy into, just like climate change, as you mentioned.
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