Anonymous wrote:The taxpayers will ultimately backstop these bad bonds owned by banks without proper hedging protocol

Anonymous wrote:

Problem averted unless you are a bond holder or investor in the bank itself, in which case, so what?

Your retirement and mine are owners of these bonds. Keep thinking all is well when it isnt.

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.

Anonymous wrote:

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:

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.

Shorts are doubling and tripling down to try to spook depositors. These banks have much stickier retail deposits than SVB. The average uninsured SVB account held $4.3M….that’s insane. Anyways, the Fed’s liquidity backstop makes the deposit run pretty moot at this point (at least for the next year).

You can drive the equity price of First Republic down to $1 and it will still be able to operate as a boring bank and remain well capitalized. Bank capital is based on the “paid in” amount, not the market value.

+1

So much of this is right wing billionaires trying to take down the US economy and prop up crypto.

Crypto up nearly 20% in the last 36 hours. You can see the play happening in real time.

Which both hilarious and ironic when you consider what happened to SVB account holders and what happened to FTX/Celsius/Voyager account holders

Signature Bank had $16.5B in crypto deposits and those depositors are being made whole; it’s not a good set of incentives. Crypto is a bit of a religion right now, so we are seeing some mistaken “flight to safety” to BTC and ETH by the libertarian tech bros who fled SVB.

Signature also has an issue with unrealized losses, but much of it stems from the crypto fallout. It’s not the same fact pattern as SVB.

My prediction is that Fed/OCC/FDIC will purge crypto deposits from the insured banking system. It has to happen.

Anonymous wrote:

Problem averted unless you are a bond holder or investor in the bank itself, in which case, so what?

Your retirement and mine are owners of these bonds. Keep thinking all is well when it isnt.

Anonymous wrote:It's disgusting that we are giving yet another bailout to rich people who constantly tell us there are winners and losers in capitalism.

Anonymous wrote:

Problem averted unless you are a bond holder or investor in the bank itself, in which case, so what?

Your retirement and mine are owners of these bonds. Keep thinking all is well when it isnt.

Problem averted unless you are a bond holder or investor in the bank itself, in which case, so what?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

Shorts are doubling and tripling down to try to spook depositors. These banks have much stickier retail deposits than SVB. The average uninsured SVB account held $4.3M….that’s insane. Anyways, the Fed’s liquidity backstop makes the deposit run pretty moot at this point (at least for the next year).

You can drive the equity price of First Republic down to $1 and it will still be able to operate as a boring bank and remain well capitalized. Bank capital is based on the “paid in” amount, not the market value.

+1

So much of this is right wing billionaires trying to take down the US economy and prop up crypto.

Crypto up nearly 20% in the last 36 hours. You can see the play happening in real time.

Which both hilarious and ironic when you consider what happened to SVB account holders and what happened to FTX/Celsius/Voyager account holders