Anonymous
03/18/2023 22:03
Subject: Re:SVB failure
Anonymous wrote:Anonymous wrote:Has Yellen confirmed yet that we could open a DCUM credit union, give each other 2% mortgages, and then walk away with our massive deposits still intact? Or is it just for big banks and people more important than DC?
You are thinking way too small. Promise to pay 8% interest, build $1B deposits, and then buy a ton of crypto and lose the keys.
Pedantically, banks in the US aren't allowed to directly hold unbacked crypto assets.
Anonymous
03/18/2023 20:31
Subject: Re:SVB failure
Anonymous wrote:Has Yellen confirmed yet that we could open a DCUM credit union, give each other 2% mortgages, and then walk away with our massive deposits still intact? Or is it just for big banks and people more important than DC?
You are thinking way too small. Promise to pay 8% interest, build $1B deposits, and then buy a ton of crypto and lose the keys.
Anonymous
03/18/2023 20:19
Subject: Re:SVB failure
Has Yellen confirmed yet that we could open a DCUM credit union, give each other 2% mortgages, and then walk away with our massive deposits still intact? Or is it just for big banks and people more important than DC?
Anonymous
03/18/2023 18:32
Subject: Re:SVB failure
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:As First Republic was quickly going down in the wake SVB and Signature, the largest banks today came up with their own bailout plan by putting in $30 billion of uninsured deposits.
https://www.citigroup.com/global/news/press-release/2023/bank-of-america-citigroup-jpmorgan-chase-wells-fargo-goldman-sachs-morgan-stanley-bny-mellon-pnc-bank-state-street-truist-and-u-s-bank-to-make-uninsured-deposits-totaling-30-billion-into-first-republic-bank
Wow what a crock of bs. Did Biden ask the banks to do this to make it seem like he wasn't bailing out the bank of rich idiots? If they think regular people really believe a conglomerate of mega banks want to prop up a small bank because they "value and appreciate small and regional banks" then I don't know what to say about how out of touch this admim must be
Pretty sure this was the banks' idea. They are definitely not altruists, but they know about contagion and are concerned about how confidence in regional banks could spread to them. Credit Suisse, for example, is a very large (and foreign) bank but jitters in the US bank market, albeit centered on regional banks, has contributed in least in part to ongoing jitters over Credit Suisse.
More like they got voluntold...
"Jamie Dimon and Janet Yellen were on a call Tuesday, when she floated an idea..."
https://www.bloomberg.com/news/articles/2023-03-17/banks-toss-first-republic-lifeline-with-yellen-dimon-s-cajoling#xj4y7vzkg
Eh. Knowing something about Yellen, this would not have been her idea. Am more inclined to think Dimon floated with her.
Anonymous
03/18/2023 18:26
Subject: Re:SVB failure
Anonymous wrote:Anonymous wrote:Anonymous wrote:As First Republic was quickly going down in the wake SVB and Signature, the largest banks today came up with their own bailout plan by putting in $30 billion of uninsured deposits.
https://www.citigroup.com/global/news/press-release/2023/bank-of-america-citigroup-jpmorgan-chase-wells-fargo-goldman-sachs-morgan-stanley-bny-mellon-pnc-bank-state-street-truist-and-u-s-bank-to-make-uninsured-deposits-totaling-30-billion-into-first-republic-bank
Wow what a crock of bs. Did Biden ask the banks to do this to make it seem like he wasn't bailing out the bank of rich idiots? If they think regular people really believe a conglomerate of mega banks want to prop up a small bank because they "value and appreciate small and regional banks" then I don't know what to say about how out of touch this admim must be
Pretty sure this was the banks' idea. They are definitely not altruists, but they know about contagion and are concerned about how confidence in regional banks could spread to them. Credit Suisse, for example, is a very large (and foreign) bank but jitters in the US bank market, albeit centered on regional banks, has contributed in least in part to ongoing jitters over Credit Suisse.
More like they got voluntold...
"Jamie Dimon and Janet Yellen were on a call Tuesday, when she floated an idea..."
https://www.bloomberg.com/news/articles/2023-03-17/banks-toss-first-republic-lifeline-with-yellen-dimon-s-cajoling#xj4y7vzkg
Anonymous
03/18/2023 14:39
Subject: SVB failure
Anonymous wrote:Anonymous wrote:The larger banks also don’t want to takeover First Republic and inherit all its problems. Jamie Dimon said he would never participate in another government organized bailout & takeover again. So many legacy headaches & lawsuits from WaMu. Buyer beware.
Agree--the banks are willing to buy if they think they can handle the financial losses, which they have the ability to estimate reasonably.
The big wildcard in losses for an acquirer, though, are those coming from DoJ, SEC, etc fines and from shareholder suits against the bank they acquire (and which the acquiring bank had nothing to do with). They really need ironclad assurances they will be held harmless against misdeeds committed by the acquired bank's management to be willing to go ahead with a purchase.
Reportedly, in negotiations with the Swiss authorities, UBS, which is under heavy pressure to acquire Credit Suisse, is asking the Swiss government for an indemnity against future legal losses.
Anonymous
03/18/2023 11:05
Subject: SVB failure
Anonymous wrote:The larger banks also don’t want to takeover First Republic and inherit all its problems. Jamie Dimon said he would never participate in another government organized bailout & takeover again. So many legacy headaches & lawsuits from WaMu. Buyer beware.
Agree--the banks are willing to buy if they think they can handle the financial losses, which they have the ability to estimate reasonably.
The big wildcard in losses for an acquirer, though, are those coming from DoJ, SEC, etc fines and from shareholder suits against the bank they acquire (and which the acquiring bank had nothing to do with). They really need ironclad assurances they will be held harmless against misdeeds committed by the acquired bank's management to be willing to go ahead with a purchase.
Anonymous
03/17/2023 18:38
Subject: SVB failure
The larger banks also don’t want to takeover First Republic and inherit all its problems. Jamie Dimon said he would never participate in another government organized bailout & takeover again. So many legacy headaches & lawsuits from WaMu. Buyer beware.
Anonymous
03/17/2023 16:07
Subject: Re:SVB failure
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:As First Republic was quickly going down in the wake SVB and Signature, the largest banks today came up with their own bailout plan by putting in $30 billion of uninsured deposits.
https://www.citigroup.com/global/news/press-release/2023/bank-of-america-citigroup-jpmorgan-chase-wells-fargo-goldman-sachs-morgan-stanley-bny-mellon-pnc-bank-state-street-truist-and-u-s-bank-to-make-uninsured-deposits-totaling-30-billion-into-first-republic-bank
Wow what a crock of bs. Did Biden ask the banks to do this to make it seem like he wasn't bailing out the bank of rich idiots? If they think regular people really believe a conglomerate of mega banks want to prop up a small bank because they "value and appreciate small and regional banks" then I don't know what to say about how out of touch this admim must be
Pretty sure this was the banks' idea. They are definitely not altruists, but they know about contagion and are concerned about how confidence in regional banks could spread to them. Credit Suisse, for example, is a very large (and foreign) bank but jitters in the US bank market, albeit centered on regional banks, has contributed in least in part to ongoing jitters over Credit Suisse.
It's not only about worry of a bank collapse bringing down the economy. If the FDIC has to continually step in an guarantee all deposits, then every bank can expect a lot more regulation
Yes the healthy banks are running very scared about buckets more in regulation is this isn't stabilized.
Anonymous
03/17/2023 14:52
Subject: Re:SVB failure
Anonymous wrote:Anonymous wrote:Anonymous wrote:As First Republic was quickly going down in the wake SVB and Signature, the largest banks today came up with their own bailout plan by putting in $30 billion of uninsured deposits.
https://www.citigroup.com/global/news/press-release/2023/bank-of-america-citigroup-jpmorgan-chase-wells-fargo-goldman-sachs-morgan-stanley-bny-mellon-pnc-bank-state-street-truist-and-u-s-bank-to-make-uninsured-deposits-totaling-30-billion-into-first-republic-bank
Wow what a crock of bs. Did Biden ask the banks to do this to make it seem like he wasn't bailing out the bank of rich idiots? If they think regular people really believe a conglomerate of mega banks want to prop up a small bank because they "value and appreciate small and regional banks" then I don't know what to say about how out of touch this admim must be
Pretty sure this was the banks' idea. They are definitely not altruists, but they know about contagion and are concerned about how confidence in regional banks could spread to them. Credit Suisse, for example, is a very large (and foreign) bank but jitters in the US bank market, albeit centered on regional banks, has contributed in least in part to ongoing jitters over Credit Suisse.
It's not only about worry of a bank collapse bringing down the economy. If the FDIC has to continually step in an guarantee all deposits, then every bank can expect a lot more regulation
Anonymous
03/17/2023 14:49
Subject: Re:SVB failure
Anonymous wrote:Anonymous wrote:As First Republic was quickly going down in the wake SVB and Signature, the largest banks today came up with their own bailout plan by putting in $30 billion of uninsured deposits.
https://www.citigroup.com/global/news/press-release/2023/bank-of-america-citigroup-jpmorgan-chase-wells-fargo-goldman-sachs-morgan-stanley-bny-mellon-pnc-bank-state-street-truist-and-u-s-bank-to-make-uninsured-deposits-totaling-30-billion-into-first-republic-bank
Wow what a crock of bs. Did Biden ask the banks to do this to make it seem like he wasn't bailing out the bank of rich idiots? If they think regular people really believe a conglomerate of mega banks want to prop up a small bank because they "value and appreciate small and regional banks" then I don't know what to say about how out of touch this admim must be
Pretty sure this was the banks' idea. They are definitely not altruists, but they know about contagion and are concerned about how confidence in regional banks could spread to them. Credit Suisse, for example, is a very large (and foreign) bank but jitters in the US bank market, albeit centered on regional banks, has contributed in least in part to ongoing jitters over Credit Suisse.
Anonymous
03/17/2023 14:14
Subject: Re:SVB failure
Anonymous wrote:Anonymous wrote:As First Republic was quickly going down in the wake SVB and Signature, the largest banks today came up with their own bailout plan by putting in $30 billion of uninsured deposits.
https://www.citigroup.com/global/news/press-release/2023/bank-of-america-citigroup-jpmorgan-chase-wells-fargo-goldman-sachs-morgan-stanley-bny-mellon-pnc-bank-state-street-truist-and-u-s-bank-to-make-uninsured-deposits-totaling-30-billion-into-first-republic-bank
Wow what a crock of bs. Did Biden ask the banks to do this to make it seem like he wasn't bailing out the bank of rich idiots? If they think regular people really believe a conglomerate of mega banks want to prop up a small bank because they "value and appreciate small and regional banks" then I don't know what to say about how out of touch this admim must be
The left hand gives money to the right hand, then the right hand gives it back to the left. But we're not supposed to see that.
Anonymous
03/17/2023 14:09
Subject: Re:SVB failure
Anonymous wrote:As First Republic was quickly going down in the wake SVB and Signature, the largest banks today came up with their own bailout plan by putting in $30 billion of uninsured deposits.
https://www.citigroup.com/global/news/press-release/2023/bank-of-america-citigroup-jpmorgan-chase-wells-fargo-goldman-sachs-morgan-stanley-bny-mellon-pnc-bank-state-street-truist-and-u-s-bank-to-make-uninsured-deposits-totaling-30-billion-into-first-republic-bank
Wow what a crock of bs. Did Biden ask the banks to do this to make it seem like he wasn't bailing out the bank of rich idiots? If they think regular people really believe a conglomerate of mega banks want to prop up a small bank because they "value and appreciate small and regional banks" then I don't know what to say about how out of touch this admim must be
Anonymous
03/17/2023 12:22
Subject: Re:SVB failure
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:As First Republic was quickly going down in the wake SVB and Signature, the largest banks today came up with their own bailout plan by putting in $30 billion of uninsured deposits.
https://www.citigroup.com/global/news/press-release/2023/bank-of-america-citigroup-jpmorgan-chase-wells-fargo-goldman-sachs-morgan-stanley-bny-mellon-pnc-bank-state-street-truist-and-u-s-bank-to-make-uninsured-deposits-totaling-30-billion-into-first-republic-bank
Genius. They look good and also know if it goes south, First Rep depositors will probably be bailed out too.
What kind of rate is 1st giving them?
Don't know rate but it is genius. They are recycling the billions of deposits that fled to them when SVB was going down.
And looks like it won’t save 1RB
Apparently, a number of banks view First Republic as an attractive target and are interested in taking it over. But bank mergers do not happen quickly owing to a lot of regulatory hurdles and whichever bank tries, it can't be too large as the merged institution could be viewed as too big to pass regulatory scrutiny.