BREAKING: First Republic Bank crashes 35% on the open as they announce exploring strategic options, including a sale.

Here we go again. pic.twitter.com/gmFXeeWsSj

— Genevieve Roch-Decter, CFA (@GRDecter) March 16, 2023

A little late. Deal has already been worked out at First Republic.

The follow-ups are nothing more than a distraction from the original banks, SVB and Signature.

Dems know how to bob and weave on these things. Kamala... expert bobber. Biden... has had more weaves than Megan Thee Stallion.

If you took a risk yesterday, or *cough*cough*, knew the cash injection was coming, you made absolute bank today on a swing trade.

Almost as if......planned.

BREAKING: JP Morgan, Morgan Stanley and other big banks are in talks with First Republic Bank about a potential capital infusion or sale

— Genevieve Roch-Decter, CFA (@GRDecter) March 16, 2023

For those with stones, banks are going to be a lot of fun for the time being.

will25u said:

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BREAKING: JP Morgan, Morgan Stanley and other big banks are in talks with First Republic Bank about a potential capital infusion or sale

— Genevieve Roch-Decter, CFA (@GRDecter) March 16, 2023

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Those banks are going to deposit ~$15 billion and receive a negotiated rate.

fka ftc said:

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will25u said:

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BREAKING: JP Morgan, Morgan Stanley and other big banks are in talks with First Republic Bank about a potential capital infusion or sale

— Genevieve Roch-Decter, CFA (@GRDecter) March 16, 2023

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Those banks are going to deposit ~$15 billion and receive a negotiated rate.

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Maybe but the big banks aren't dumb enough to offset that $15B against long-term or even mid-term treasuries, but that is all the collateral these smaller bank seem to have. So the banks are negotiating over repo and swap duration and rates. why would the big institution take on $15B in liabilities of some other bumblef--k bank more worried about virtue signaling than taking care of its balance sheet unless you get something back in return?

so everyone rushed to get their money out of regional banks and into JPM, citi, GS, wells fargo...and now those banks are dumping the money right back into FRC. lol

tysker said:

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fka ftc said:

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will25u said:

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BREAKING: JP Morgan, Morgan Stanley and other big banks are in talks with First Republic Bank about a potential capital infusion or sale

— Genevieve Roch-Decter, CFA (@GRDecter) March 16, 2023

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Those banks are going to deposit ~$15 billion and receive a negotiated rate.

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Maybe but the big banks aren't dumb enough to offset that $15B against long-term or even mid-term treasuries, but that is all the collateral these smaller bank seem to have. So the banks are negotiating over repo and swap duration and rates. why would the big institution take on $15B in liabilities of some other bumblef--k bank more worried about virtue signaling than taking care of its balance sheet unless you get something back in return?

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I actually agree with you.
I'm not really on that side but it seems like there are several solutions the industry could take to mitigate these issues and stop relying on the feds to step in. Bank execs should be put on notice they will be held accountable for their oopsies

QE is Back!

About $300 billion in assets added to Fed balance sheet in the last week pic.twitter.com/a46TLAkFwr

— Genevieve Roch-Decter, CFA (@GRDecter) March 16, 2023

From..where/who? Pretty sure I ain't gonna like the answers.

An L of an Ag said:

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From..where/who? Pretty sure I ain't gonna like the answers.

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Better explanation.

The spike was not due to asset purchases (Treasuries and MBS holdings actually declined) but from a $303 billion increase in "Loans." Part of that was the new Bank Term Funding Program ($12 billion) and the rest credit extensions to banks (discount window/bridge loans). pic.twitter.com/uIfhtKgwSS

— Charlie Bilello (@charliebilello) March 16, 2023

An L of an Ag said:

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From..where/who? Pretty sure I ain't gonna like the answers.

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1 inflation massively rises because of trillions of dollars flooded into the system by quantitative easing over the last decade

2 Fed Reserve has no choice when faced with years long inflation but to end quantitative easing and go for limited quantitative tightening and raising rates

3 when Fed Reserve does this, banks begin to collapse.

4 answer, more trillions flooded into system through quantitative easing and lowering of interest rates.

which brings us neatly back to point number 1.

I called this last summer, the federal.gov. and fedres. Don't have the balls for the true reckoning that is needed.

Kozmozag said:

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I called this last summer, the federal.gov. and fedres. Don't have the balls for the true reckoning that is needed.

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If you went back in time and removed all of the excess liquidity from the market, 95% of Americans would have to give up their 3,500sf house in the burbs, their new cars every 3 years, their fancy purses, their luxurious vacations, etc.

Congress would have to balance the budget and stop buying votes from whatever special interest they are focused on.

Companies would have to right size their balance sheets, lowering wages and reducing headcount.

NO one has the stomach for a complete reset. The Fed removed ~ $500B from the money supply last year. Only $21T to go. We flinched at less than 2%.

We're about to find out what they mean when they say "don't let the inflation genie out of the bottle".

cgh1999 said:

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Kozmozag said:

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I called this last summer, the federal.gov. and fedres. Don't have the balls for the true reckoning that is needed.

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If you went back in time and removed all of the excess liquidity from the market, 95% of Americans would have to give up their 3,500sf house in the burbs, their new cars every 3 years, their fancy purses, their luxurious vacations, etc.

Congress would have to balance the budget and stop buying votes from whatever special interest they are focused on.

Companies would have to right size their balance sheets, lowering wages and reducing headcount.

NO one has the stomach for a complete reset. The Fed removed ~ $500B from the money supply last year. Only $21T to go. We flinched at less than 2%.

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Wow, up to $2T they say... https://t.co/jFTQc0j5uw

— Jason Lowery (@JasonPLowery) March 17, 2023

The complete irony is that Powell will raise the interest rate (don't know on who at this point), while then giving the banks emergency relief funds...

I just....what are we accomplishing here? Especially with the SVB...I mean...that is the exact...the EXACT sector of the market that has been silly frothy over the last decade.

Silicon Valley Bank, $SIVB, has officially filed bankruptcy.

2 weeks ago, SVB was operating as usual as the 14th largest bank in the U.S.

Most interestingly, SVB and regulators tried to sell the company for a week.

Not a single buyer emerged.

Regional banks are in trouble.

— The Kobeissi Letter (@KobeissiLetter) March 17, 2023

[url=https://twitter.com/SeidlerCorp/status/1636518949872451584][/url]

Here is the snippet: pic.twitter.com/85iBeXC0Wn

— Seidler (@SeidlerCorp) March 17, 2023

Adverse Event said:

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cgh1999 said:

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Kozmozag said:

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I called this last summer, the federal.gov. and fedres. Don't have the balls for the true reckoning that is needed.

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If you went back in time and removed all of the excess liquidity from the market, 95% of Americans would have to give up their 3,500sf house in the burbs, their new cars every 3 years, their fancy purses, their luxurious vacations, etc.

Congress would have to balance the budget and stop buying votes from whatever special interest they are focused on.

Companies would have to right size their balance sheets, lowering wages and reducing headcount.

NO one has the stomach for a complete reset. The Fed removed ~ $500B from the money supply last year. Only $21T to go. We flinched at less than 2%.

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Wow, up to $2T they say... https://t.co/jFTQc0j5uw

— Jason Lowery (@JasonPLowery) March 17, 2023

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Technically it's not $2T of money into the system. The majority is money that banks all advanced on their lines with the Fed to shore up their balance sheets in case of bank runs. IF we see some stabilization most of that will be repaid

Wow, disgusting. States for the public record that the party will decide who wins or loses based on an arbitrary analysis. And the winners will be those large banking entities that are allies to the party and contribute to our causes. These actions will drive more business to the large party aligned banks at the expense of the smaller uncontrolled banks and this will all be paid for by everyone else.

Ernest Tucker said:

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Wow, disgusting. States for the public record that the party will decide who wins or loses based on an arbitrary analysis. And the winners will be those large banking entities that are allies to the party and contribute to our causes. These actions will drive more business to the large party aligned banks at the expense of the smaller uncontrolled banks and this will all be paid for by everyone else.

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A uhh...majority...err -uhh SUPERMAJORITY!

Bunk Moreland said:

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[url=https://twitter.com/SeidlerCorp/status/1636518949872451584][/url]

Here is the snippet: pic.twitter.com/85iBeXC0Wn

— Seidler (@SeidlerCorp) March 17, 2023

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Should we just tell him that his community banks in rural Oklahoma that are lending to their communities (and can't get a loan from the big banks because its too small...etc) will be whiped out because they are inconsequential to the system?

Just another worthless dem. Basically if it's systmitic(hurts democrats) then it's covered. Oklahoman, you **** out of luck.

DallasAg 94 said:

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fka ftc said:

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For those with stones insider information, banks are going to be a lot of fun for the time being.

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I tried that in the '08-09 crisis. You had no idea who was going to get bailed out and saved and who was going to be left for dead.

But if you knew... you banked. Like Warren Buffett.

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Touche but you are absolutely right. Thought to be honest, you have to have the cheddar, the stones and the birdie in your ear to make the real money.

Any SEC investigation of insider trading on such things would be hard to prove. An exec selling stock before a collapse seems to get washed aside these days as just normal course, impeccable timing and so on.

Buying a troubled bank stock that then gets a bailout from the US govt. would be impossible to attribute to insider trading, unless you documented it in your journal, texts and email.

The following is not stock advice and I have no insider information other than being a customer for 15+ years and observing how they tend to operate, but a bank like Frost getting its share price dinged and dented the last week to the point it looks to dip below $100 seems like a buy opportunity.

Frost was one of the largest banks NOT to take TARP in 2008-2009. The tend to stay out of traditional consumer banking loans like cars and mortgages, and tend to be pretty damn diligent in any real estate lending. Some of that may be dated info but I would be surprised if they changed course from this.

But that is where I based my stones comment on. Trying to challenge myself on whether to take a position and see what happens.

Tex117 said:

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Bunk Moreland said:

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[url=https://twitter.com/SeidlerCorp/status/1636518949872451584][/url]

Here is the snippet: pic.twitter.com/85iBeXC0Wn

— Seidler (@SeidlerCorp) March 17, 2023

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Should we just tell him that his community banks in rural Oklahoma that are lending to their communities (and can't get a loan from the big banks because its too small...etc) will be whiped out because they are inconsequential to the system?

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So basically if you do not vote strongly for team Biden then no bailout for you. Doubly so if your holdings and customers are heavily correlated to O&G.

Libs are fine with this. Democratic voters, CMs and RINOs worship at the altar of preferential treatment, elitism, discrimination and racism.

CDUB98 said:

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Reginald Cousins said:

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richardag said:

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bmks270 said:

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Nanomachines son said:

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fka ftc said:

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I think the big hurt is going to come to some of the most deserving people. SVB seems to have been pretty friendly in loaning money to paper startups. That VC capital is going to both dry up and get massively expensive.

Those who followed the "learn to code" instruction from Biden may want to get their hard hats and workbelts out of storage.

From my perspective, cheaper labor and a more plentiful workforce would be a welcome change. But I think Biden will kill any hope of a positive outcome by bailouts and handouts, from the bottom up and the middle out,

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Tech is going to get hit with the same funding issue that brought down the shale boom in oil and gas. Money being thrown around continuously and zero profit to show for it outside of future potential is not a good combination when any downturn hits.

You're going to see VC money be way more leery about investments in this arena soon.

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Virgin Orbit furloughed all workers today. Looks like they're out of money.

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Maybe Richard Branson could sell Necker Island to raise some funds. Or wait for a federal bailout?

Necker Island is basically a desert, no source of freshwater, relies on desalination. Supposedly used as a safe haven for endangered species, Madagascar lemurs and some tortoises, damn near wiped out by a hurricane that shut down the desalination facility. Safe haven my ass, way to dupe very wealthy idiots to this paradise to vacation.

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Weird rant.

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Sounded like richard envy.

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No, I don't envy people that have made fortunes. I spent the day on Necker Island shortly after a hurricane had destroyed much of the island. There is no viable reason to expose endangered species on an island like Necker Island.

By the way before you make snarky bull**** comments you may want to learn something.
My mistake, I incorrectly responded.
NEWSLETTERS SUBSCRIBE ICONS & INNOVATORS Richard Branson Borrows Against Necker Island to Help Save Virgin Atlantic. It Might Be Too LateThe airline needs a bailout loan to survive. The U.K. government has turned him down so far.

My humor meter must be broken, sorry

Dude, it was a joke.

Silicon Valley Bank failed just 14 days after KPMG LLP gave the lender a clean bill of health. Signature Bank went down 11 days after the accounting firm signed off on its audit. What KPMG knew about the two banks' financial situation and what it missed will likely be the subject of regulatory scrutiny and lawsuits.

KPMG signed the audit report for Silicon Valley Bank's parent, SVB Financial Group SIVB 0.00%increase; green up pointing triangle, on Feb. 24. Regulators seized the bank on March 10 after a surge of withdrawals threatened to leave it short of cash.

"Common sense tells you that an auditor issuing a clean report, a clean bill of health, on the 16th-largest bank in the United States that within two weeks fails without any warning, is trouble for the auditor," said Lynn Turner, who was chief accountant of the Securities and Exchange Commission from 1998 to 2001.

Two crucial facts for determining whether KPMG missed the banks' problems are when the bank runs began in earnest and when the bank's management and KPMG's auditors became aware of the crisis.

KPMG Gave SVB, Signature Bank Clean Bill of Health Weeks Before Collapse - WSJ