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๐Ÿ“‰ International Banking Crisis - Update

We get to bail out Chinese depositors in svb! Isn't that just great! :mad:

"Facing a crisis of confidence in our banks, Janet Yellen took a verbal jackhammer to any faith left. Not only did she regurgitate Bidenian whoppers about the โ€œhistoric economic recovery,โ€ she caused a quake with THIS. WATCH EVERY SECOND."

 
Top executives at Silicon Valley Bank sold stock totaling several million dollars less than two weeks before the company became the largest bank failure since the 2008 financial crisis, according to federal disclosures obtained by
@ABC News.


Top executives at embattled lender First Republic Bank reaped a combined haul of nearly $12 million by dumping stock just before chaos unfolded in the banking sector โ€“ including sales that occurred as recently as this month.
The stock sales are drawing scrutiny as the nationโ€™s largest banks threw a whopping $30 billion lifeline to prevent First Republicโ€™s collapse following a mass exodus of depositors this week.
As of Friday, the bankโ€™s stock has plunged nearly 80% since February.
In total, company executives have earned about $11.8 million in sales this year and sold stock at prices averaging just under $130 each. The stock is currently trading for less than $23 per share
THESE are the guys, from SVB, First Republic. et al, that should be perp walked.
 
I do not know if the banking failures are over or not. I will point out that banking failures and major finical collapses or contractions do not happen instantaneous or overnight. They are usually one or two single events that precipitated subsequent failures due to systemic instability or poor policy response.
So with that note the segment from this papers abstract is concerning.

From the abstract;
The U.S. banking systemโ€™s market value of assets is $2 trillion lower than suggested by their book value of assets accounting for loan portfolios held to maturity.

from the papers conclusions;
Even if only half of uninsured depositors
decide to withdraw, almost 190 banks are at a potential risk of impairment to even insured depositors, with potentially $300 billion of insured deposits at risk. If uninsured deposit withdrawals cause even small fire sales, substantially more banks are at risk. Overall, these calculations suggest that recent declines in bank asset values significantly increased the fragility of the US banking system to uninsured depositors runs


 

Small U.S. banks see record drop in deposits after SVB collapse

Deposits at small U.S. banks dropped by a record amount following the collapse of Silicon Valley Bank on March 10, data released on Friday by the Federal Reserve showed.

Deposits at small banks fell $119 billion to $5.46 trillion in the week ended March 15. That was more than twice the previous record drop and the biggest decline as a percent of overall deposits since the week ended March 16, 2007.
 
I love this disconnect
SVB one of larger banks in the country collapses.
Zoo herd mentality โ€œdepositors of smaller banks race to move funds from smaller banks to larger banks like like wells and chase. Because of course โ€œlargerโ€ are obviously safer?
 
I love this disconnect
SVB one of larger banks in the country collapses.
Zoo herd mentality โ€œdepositors of smaller banks race to move funds from smaller banks to larger banks like like wells and chase. Because of course โ€œlargerโ€ are obviously safer?
Well smaller banks won't get bailed out. But a big one will that millions of people depend on for paychecks and such will.
 
This is a complicated situation no doubt.
But it occurs to me if all we ever do is bail out the too big to fail all we are doing in the long run is making the eventual failure truly to big to fail. And too big to bail.
 
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What needs to happen is better government intervention in how the banking system is regulated and ran. How banks manage themselves should be almost entirely rewritten, enitely new laws, or find ways to regulate them entirely no more funny business. Think its time to put a stop to poor bank management and only way to do that is to take their freedom away to cause such disasters and be ENTIRLY regulated.

(NOT TALKING ABOUT REGULATING ECONOMY, FREE MARKET, OR PRIVATE BUSINESSES WHICH IS ENTIRLY DIFFERENT THEN BANKING REGULATION.)
 
What needs to happen is better government intervention in how the banking system is regulated and ran. How banks manage themselves should be almost entirely rewritten, enitely new laws, or find ways to regulate them entirely no more funny business. Think its time to put a stop to poor bank management and only way to do that is to take their freedom away to cause such disasters and be ENTIRLY regulated.

(NOT TALKING ABOUT THE ECONOMY OR FREE MARKET WHICH IS ENTIRLY DIFFERENT THEN BANKING REGULATION.)
Change the reserve amounts they must maintain is a start.
The zero interest rates from the fed has eroded their ability to attract savings deposits.
 
Yes banking institutions should have zero rights to fuck millions of people out of money and walk away from it with no consequences. It's time to take their freedoms away and be regulated to the max. No more funny business. No more crookedness.

Time to make the baking system more honest and trustworthy and only way where going to do that is to take over the banks entirly and regulate everything they do top to bottom.
 
Yes banking institutions should have zero rights to fuck millions of people out of money and walk away from it with no consequences. It's time to take their freedoms away and be regulated to the max. No more funny business. No more crookedness.

Time to make the baking system more honest and trustworthy and only way where going to do that is to take over the banks entirly and regulate everything they do top to bottom.
No one puts a gun to your head and makes you deposit funds anywhere. Due diligence and multiple accounts in multiple banks, CU etc.
 
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