Anonymous
03/13/2023 10:56
Subject: Re:SVB Bank Run: Fed Calling Emergency Meeting
Meanwhile the market value of SVB is approx $135 billion with over $175 billion in deposits. If the unrealized losses aren't reversed in a year the FDIC's insurance fund will drop by 30% from just one bank failure. Hold on people, it's gonna get worse.
Anonymous
03/13/2023 10:51
Subject: Re:SVB Bank Run: Fed Calling Emergency Meeting
More banks than SVB are failing
* FIRST REPUBLIC BANK HALTED FOR VOLATILITY, DOWN 65%
* PACWEST HALTED FOR VOLATILITY; DROPPED 41% TO LOWEST ON RECORD
* REGIONS HALTED FOR VOLATILITY AFTER PARING 31% DROP TO 20%
* WESTERN ALLIANCE SINKS A RECORD 76%; HALTED FOR VOLATILITY
* FIRST REPUBLIC BANK HALTED FOR VOLATILITY, DOWN 65%
* PACWEST HALTED FOR VOLATILITY; DROPPED 41% TO LOWEST ON RECORD
* REGIONS HALTED FOR VOLATILITY AFTER PARING 31% DROP TO 20%
* WESTERN ALLIANCE SINKS A RECORD 76%; HALTED FOR VOLATILITY
Anonymous
03/13/2023 10:50
Subject: SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote:Anonymous wrote:First Republic stock is down 75% in a day and has been halted.
Western Alliance's down 84%, while PacWest Bancorp and Zions Bank Corporation has declined more than 40%. Regional banks are getting hammered over concerns of a contagion.
This ain't over.
It’s not contagion. It’s the very rationale realization that these equities were grossly overvalued last week in light of these banks’ large unrealized losses. They won’t go bust, but they will only eek out meager profits as they wait for their UST and MBS portfolios to run off.
Lol. Losing 85% in total market cap overnight is way more than just a correction due to being overvalued. It is literally speculation that First Republic and Western Alliance are now in trouble too. If they go kaput, it means contagion because that will be 4 banks going under.
Anonymous
03/13/2023 10:44
Subject: SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote:Anonymous wrote:First Republic stock is down 75% in a day and has been halted.
Western Alliance's down 84%, while PacWest Bancorp and Zions Bank Corporation has declined more than 40%. Regional banks are getting hammered over concerns of a contagion.
This ain't over.
It’s not contagion. It’s the very rationale realization that these equities were grossly overvalued last week in light of these banks’ large unrealized losses. They won’t go bust, but they will only eek out meager profits as they wait for their UST and MBS portfolios to run off.
The authorities (both parties and almost all influential people) were in large-scale denial of the amount of risk in the system. And those large risks just bit some asses.
Anonymous
03/13/2023 10:43
Subject: SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Oh, please! Blaming Boomers now.
Five causes of inflation are the following:
increased government spending.
increased money supply.
increase in production costs.
increase in aggregate demand.
workers bargaining for higher nominal wages.
Cause #1: always simple-minded and now senile boomers needing to convince themselves that the ‘threats’ of yesteryears’ are still real.
Why do you hold your fellow citizens in such contempt?
It is not a good look.
I hold people in contempt who make a point of slavish loyalty to evil and that includes your lot of inflation simpletons. The issues in consumer prices are almost entirely about bad consolidation (aka crappy regulation) leading to monopoly pricing power. This is easy to understand, since the generalized price level changes look very different than those in these industries where prices have gone parabolic.
Consumer prices leapt up, while corporate profits skyrocketed. Connect the dots and it points to profiteering. Corporates gleefully went on that ride, driving inflation higher and higher.
It’s price increases highly concentrated in a few areas. It’s not generalized price level increases.
Anonymous
03/13/2023 10:39
Subject: SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote:First Republic stock is down 75% in a day and has been halted.
Western Alliance's down 84%, while PacWest Bancorp and Zions Bank Corporation has declined more than 40%. Regional banks are getting hammered over concerns of a contagion.
This ain't over.
It’s not contagion. It’s the very rationale realization that these equities were grossly overvalued last week in light of these banks’ large unrealized losses. They won’t go bust, but they will only eek out meager profits as they wait for their UST and MBS portfolios to run off.
Anonymous
03/13/2023 10:35
Subject: Re:SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote: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.
The fund is rarely actually used. The FDIC uses the failed bank's assets first.
Anonymous
03/13/2023 10:32
Subject: Re:SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote:Anonymous wrote: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.
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.
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.
Anonymous
03/13/2023 10:30
Subject: SVB Bank Run: Fed Calling Emergency Meeting
First Republic stock is down 75% in a day and has been halted.
Western Alliance's down 84%, while PacWest Bancorp and Zions Bank Corporation has declined more than 40%. Regional banks are getting hammered over concerns of a contagion.
This ain't over.
Western Alliance's down 84%, while PacWest Bancorp and Zions Bank Corporation has declined more than 40%. Regional banks are getting hammered over concerns of a contagion.
This ain't over.
Anonymous
03/13/2023 10:27
Subject: Re:SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote: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.
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.
Anonymous
03/13/2023 10:18
Subject: Re:SVB Bank Run: Fed Calling Emergency Meeting
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.
Anonymous
Anonymous
03/13/2023 09:54
Subject: Re:SVB Bank Run: Fed Calling Emergency Meeting
The whole banking and finance industry needs to be overhauled, same as the healthcare and healthcare insurance industry.
Anonymous
03/13/2023 09:53
Subject: Re:SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:lol. what a total disaster. so basically today the feds announced that the $250k limit doesn't actually exist and the entirety of monies on deposit in the US are guaranteed by the feds.
Biden is an idiot for allowing this. If the GOP was not an insane party right now I would not vote for Biden again.
No, other banks bailed out the depositors, not taxpayers. As it should be. Maybe they'll all take risk a little more seriously.
I'm just an average American who doesn't really understand what's happening. Please help me understand. The $250k limit doesn't apply; all deposits are covered. Who is covering the amounts over $250K? And why shouldn't I feel like it's a "bailout" that protects rich bank execs?
The money is coming from other banks and from the proceeds of the auction...this in total is a very shrewd move by the administraton. Secure the depositors but screw the bond holders. The overall negative impact will be minimal.
except those bonds are held by other banks... whoops
Nope, they actually are not. Banks have to take pretty punitive capital deductions for investments in other bank’s equity and debt instruments, thanks to the Basel III reforms. Fortunately, the Trump administration didn’t roll back that provision.
Vast majority of SVBs equity and debt is owned by retail investors, institutional investors, and hedge funds. The loss is actually pretty small for a well diversified portfolio, a mere blip,
Anonymous
03/13/2023 09:38
Subject: Re:SVB Bank Run: Fed Calling Emergency Meeting
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:lol. what a total disaster. so basically today the feds announced that the $250k limit doesn't actually exist and the entirety of monies on deposit in the US are guaranteed by the feds.
Biden is an idiot for allowing this. If the GOP was not an insane party right now I would not vote for Biden again.
No, other banks bailed out the depositors, not taxpayers. As it should be. Maybe they'll all take risk a little more seriously.
I'm just an average American who doesn't really understand what's happening. Please help me understand. The $250k limit doesn't apply; all deposits are covered. Who is covering the amounts over $250K? And why shouldn't I feel like it's a "bailout" that protects rich bank execs?
The money is coming from other banks and from the proceeds of the auction...this in total is a very shrewd move by the administraton. Secure the depositors but screw the bond holders. The overall negative impact will be minimal.
except those bonds are held by other banks... whoops