SVB failure (2 Viewers)

[MT15]

This seems to be generating a lot of talk among the on-line tech set. I don’t really care why it failed or about the nuts and bolts, but I found the immediate calls for a government bail out of investors fascinating. This guy’s thread makes a great set of points about it.



There’s an entire thread, not too long, well worth reading.

 

[MT15]

I’m not sure what to tell you, the timeline seems pretty straight down the fairway. It doesn’t favor Republicans or Democrats. The graph I shared showed that both sets of pigs eat at the same trough.

Oh, that’s fine. Just musing.

 

[zztop]

Credit Suisse is going to have a bad day.

UBS to buy Credit Suisse for nearly $3.25B to calm turmoil

GENEVA (AP) — Banking giant UBS is buying troubled rival Credit Suisse for almost $3.25 billion, in a deal orchestrated by regulators in an effort to avoid further market-shaking turmoil in the global banking system.

apnews.com

 

[el caliente]

 

[el caliente]

 

[zztop]

another one?

First Republic Bank Is Seized, Sold to JPMorgan in Second-Largest U.S. Bank Failure

The deal will see JPMorgan take on all of First Republic’s $92 billion in deposits and buy most of its assets, including about $173 billion in loans and $30 billion in securities.

www.wsj.com

- JPMorgan to pay $10.6B to FDIC
- FDIC to provide $50B, 5-YR fixed-rate financing
- JPMorgan to repay prior $25B deposit injection from large U.S. banks
- First Republic 84 branches in 8 states will reopen today as branches of JPMorgan
- All deposits of First Republic will become depositors of JPMorgan and will have full & instant access to their deposits
- JPMorgan says deal has fair value mark on acquired loans at roughly $22B
- JPMorgan will NOT assume First Republic's corporate debt or preferred stock

 

[efil4]

another one?

First Republic Bank Is Seized, Sold to JPMorgan in Second-Largest U.S. Bank Failure

The deal will see JPMorgan take on all of First Republic’s $92 billion in deposits and buy most of its assets, including about $173 billion in loans and $30 billion in securities.

www.wsj.com

JPM will NOT assume "debt" or preferred stock- ouch.

60 days ago, stock was at $123.22/share.

60 days later $3.00/share.

Wiped out.

 

[MT15]

JPM will NOT assume "debt" or preferred stock- ouch.

60 days ago, stock was at $123.22/share.

60 days later $3.00/share.

Wiped out.

Buffet said a while ago he’s not holding any bank stocks. Not sure when he got out.

 

[efil4]

Buffet said a while ago he’s not holding any bank stocks. Not sure when he got out.

Meanwhile execs quietly unloaded shares since 1/1 as well as a handful of Congress members, one of whom sat on banking oversight committee. He did it in March after a meeting about SVB and fallout.

You destroy the wealth of others, law needs to change to you forfeit everything you amassed. Fiduciary responsibility should have dire consequences. It irritates me to no end how these banks continue to flirt with disaster and no real repercussions for the folks that skated on that thin ice.

Oh and because of changes to SEC rules due to New Era deal, they didn't have to file with SEC

 

[zztop]

Just another reason why I think lobbying and special interest groups should not be allowed

https://www.fastcompany.com/90889743/what-went-wrong-at-first-republic-bank

If the rules Dodd-Frank put in place for regional banks were still in place, it’s very unlikely that we would be talking about bank runs today. But in 2018, thanks to fervent lobbying from the banking industry, Congress enacted a law that significantly weakened government oversight.

https://www.fastcompany.com/40576008/congress-just-wound-back-wall-streets-clock-and-throttled-innovation

By one recent measure, banks spent $2 billion on political activity during the last election cycle, more than double that of any other business sector. Over the past six years, senators who supported this bill received more than twice the amount of campaign contributions from banks and credit unions than those who opposed it, according to one watchdog group’s analysis.