Toggle navigation
Toggle navigation
Home
DCUM Forums
Nanny Forums
Events
About DCUM
Advertising
Search
Recent Topics
Hottest Topics
FAQs and Guidelines
Privacy Policy
Your current identity is: Anonymous
Login
Preview
Subject:
Forum Index
»
Political Discussion
Reply to "SVB Bank Run: Fed Calling Emergency Meeting "
Subject:
Emoticons
More smilies
Text Color:
Default
Dark Red
Red
Orange
Brown
Yellow
Green
Olive
Cyan
Blue
Dark Blue
Violet
White
Black
Font:
Very Small
Small
Normal
Big
Giant
Close Marks
[quote=Anonymous][quote=Anonymous][quote=Anonymous]Last time I checked the FDIC insurance fund is $125 billion. Once First Republic, Regions and many other regional banks fail that insurance fund will be exhausted.[/quote] They won’t fail due to a deposit run. The equity investors have finally realized that these unrealized losses mean very low returns on equity for these banks for the next 5-7 years. The banks can’t reallocate their assets into higher yield because it would mean realizing large losses. They will just need to run off their portfolio and be a boring low profit bank. That sucks for equity holders and anyone hoping to get a bonus. But it’s fine for depositors and anyone who wants a loan from the bank. Equity holders are taking the hit. Nature is healing. [/quote] This is accurate. It makes sense to mention that in a negative event we want equity holders to take the risk. That is the nature of equity. [/quote]
Options
Disable HTML in this message
Disable BB Code in this message
Disable smilies in this message
Review message
Search
Recent Topics
Hottest Topics
