2nd and 3rd bank(possibly a 4th) collapse imminent in last 2 days of trading

[Long Duck Dong]

Should we be worried?

Western Alliance Bancorp's stock price dropped by three quarters as the opening bell sounded while shares in First Republic Bank dived 67 percent and PacWest Bancorp plunged more than 35 percent. Trading was swiftly suspended to protect the market from rampant volatility.


Major US banks were also hit as contagion fears spread through the sector with Wells Fargo falling 7.5 percent, Bank of America dropping 7.4 percent, Citigroup falling 5.8 percent and JP Morgan down 2.7 percent.

Biden attempted to shore up trust this morning as he told a press conference: 'Americans can have confidence that the banking system is safe.'

The White House yesterday guaranteed that Silicon Valley Bank customers would be 'made whole' after US authorities took control following the biggest collapse by a financial institution since 2008.

https://www.dailymail.co.uk/news/art...s-backing.html

[bladefd]

Stocks of local banks are falling due to fear. However those banks are not collapsing. I hope you realize they are two totally different things?

From everything I have read, svb was badly managed and went down due to that. It was most likely an isolated incident.

[Long Duck Dong]

Stocks of local banks are falling due to fear. However those banks are not collapsing. I hope you realize they are two totally different things?

From everything I have read, svb was badly managed and went down due to that. It was most likely an isolated incident.

First Republic Bank also had massive liquidity issues and were in danger of collapsing until the Federal Reserve and Chase gave them a huge shot in the arm. Chase will likely own this bank in a few years if not sooner.

[tontoz]

Stocks of local banks are falling due to fear. However those banks are not collapsing. I hope you realize they are two totally different things?

From everything I have read, svb was badly managed and went down due to that. It was most likely an isolated incident.

I would bet that a lot of banks have been wrongfooted by the Feds rate hikes and would have to take huge bond losses if forced to sell.

I saw a vid recently that JPM has over $40 billion of unrealized bond losses. Don't remember where i actually saw it and obviously they have enough money to handle it, but many banks aren't so lucky.

[FKAri]

Stocks of local banks are falling due to fear. However those banks are not collapsing. I hope you realize they are two totally different things?

From everything I have read, svb was badly managed and went down due to that. It was most likely an isolated incident.

No bank holds 1:1. Bank runs can always lead to collapse. I guess all banks are poorly managed in that case.

[coin24]

Stocks of local banks are falling due to fear. However those banks are not collapsing. I hope you realize they are two totally different things?

From everything I have read, svb was badly managed and went down due to that. It was most likely an isolated incident.

Come on guys, blade never misses.. except for the Russian collusion, oh and the whole Covid thing.. pretty much whatever this clown says do the exact opposite

[BigKobeFan]

Come on guys, blade never misses.. except for the Russian collusion, oh and the whole Covid thing.. pretty much whatever this clown says do the exact opposite

His nickname is alwayswrongblade

[Patrick Chewing]

Everything with blade is an "isolated incident" or a "nothingburger" or "not a big deal".

[Long Duck Dong]

From everything I have read, svb was badly managed and went down due to that. It was most likely an isolated incident.

You got that right. Only ONE of their board members had a background in banking. The rest of the board was full of Clinton and Obama mega donors who were more concerned about climate change, racial equity, and social justice change than the actual operation of a financial institution. They had the time and money for all this libtard sh!t but left key positions unfilled for months.

Btw. Signature Bank collapsed too. Not to mention the many others that are looking very unhealthy. It absolutely is fear, when people are starting to pay attention to some of these banks' actual liquidity.

[tontoz]

You got that right. Only ONE of their board members had a background in banking. The rest of the board was full of Clinton and Obama mega donors who were more concerned about climate change, racial equity, and social justice change than the actual operation of a financial institution. They had the time and money for all this libtard sh!t but left key positions unfilled for months.

Btw. Signature Bank collapsed too. Not to mention the many others that are looking very unhealthy. It absolutely is fear, when people are starting to pay attention to some of these banks' actual liquidity.

Keep in mind that SVB's big losses were in Treasury bonds which are supposed to be the safest investments available. It isnt like they were making risky bets with customer deposits.

They just had too much money in 10 yr Treasuries and didn't pivot when the Fed started hiking rates. I bet that there are a lot of banks that have significant losses for the same reason. The losses wouldn't matter if they could hold to maturity but when they had to sell to raise cash they were screwed.

And of course we aren't even talking about more risky investments banks make like commercial real estate. There are a lot of these loans that will end up in default.

[BigKobeFan]

So it turns out Gruesom Newsom had money in SVB.

[Long Duck Dong]

Keep in mind that SVB's big losses were in Treasury bonds which are supposed to be the safest investments available. It isnt like they were making risky bets with customer deposits.

They just had too much money in 10 yr Treasuries and didn't pivot when the Fed started hiking rates. I bet that there are a lot of banks that have significant losses for the same reason. The losses wouldn't matter if they could hold to maturity but when they had to sell to raise cash they were screwed.

And of course we aren't even talking about more risky investments banks make like commercial real estate. There are a lot of these loans that will end up in default.

Maybe if they hadn't been so busy trying to impress clients with how progressive they were, they would have had their eye on the ball and adjusted to a rapidly changing economic environment. Then they could have impressed their clients with their foresight and business acumen instead.

[rawimpact]

Keep in mind that SVB's big losses were in Treasury bonds which are supposed to be the safest investments available. It isnt like they were making risky bets with customer deposits.

They just had too much money in 10 yr Treasuries and didn't pivot when the Fed started hiking rates. I bet that there are a lot of banks that have significant losses for the same reason. The losses wouldn't matter if they could hold to maturity but when they had to sell to raise cash they were screwed.

And of course we aren't even talking about more risky investments banks make like commercial real estate. There are a lot of these loans that will end up in default.

Biggest takeaway is diversification.

10 year treasuries are complete garbage when you compare it to a 1 month t-bill going at 4.5 or so...

[tontoz]

Biggest takeaway is diversification.

10 year treasuries are complete garbage when you compare it to a 1 month t-bill going at 4.5 or so...

They obviously bought the 10 years before the Fed started hiking rates.

I am sure a lot of banks did the same thing, just not to the same extent, and have large unrealized losses on their balance sheets.

Of course they could have hedged with futures but realistically I blame the Fed more than the banks. Don't forget their transitory nonsense and Powell's " we aren't even thinking about thinking about raising rates" just a few months before a historic rate raise cycle.

[FultzNationRISE]

Do you guys honestly not see the big picture here??

The world's banking system IS unsustainable. Banking is attached to growth, and the economy can't continue growing the way it has at a steady, compounding pace since basically the start of civilization, or the environment will simply collapse.

We all live today like heads of state did in the 1970s. Poor people in the 70s lived like Presidents from the 1910s. Peasants in the 1910s lived like King's from the 1700s. Everything has gotten better for everyone all the way up and down the chain because of persistent growth.

There isnt enough land space and energy for 8 billion people today to live in 20 years like Bill Gates does now. It is not possible. So that whole economic model we've relied on for 10,000 years is nearly up. But people will not simply accept stagnation. The public only lets guys get that rich if theyre growing too. But not everyone can keep growing.

Also we've only outsourced to other countries for decades because the labor was cheap, and it was only cheap because those people came to cities from impoverished rural backgrounds. People now are used to it, and wont be content to work for pennies forever, just like american immigrants in 1910 werent content to work in factories for 40 cents a day by 1960.

Our whole lives, our parents lives, our grandparents lives were lived in an unsustainable bubble of rampant growth and decadence. It will come to an end in our life times. It is a completely unique and unprecedented point in human history, that few people are willing to acknowledge or appreciate because it scares the living shit out of them. The people at the top who are intelligent and have been modeling these things for years understand what's coming and are doing their best to control it. But not everyone globally is going to make it and there are going to be some TOUGH, TOUGH decisions that are 100% inevitable. And it's not a simple "one time fix and then back to normal" situation. Everything you know about life, careers, relationships, and basic human society that is based on all history heretofore is about to change PERMANENTLY. This is a fact.

Ignorance and conformity are no longer the survival strategy theyve been for centuries now. People stuck in that mold (which is most) are in for a wildly rude awakening over the next decade.