SVB is Now In the Hands of the FDIC

[VegasMichael]

I know there was something that happened between 2023 and 2018 that caused deposits to explode but I just cant put my finger on it

Here is the fed balance sheet

It was incredible how many people received covid stimulus checks that flat out didn't need them. I'm guilty.

 

[Klaus]

Trust in banking system restored!

 

[Klaus]

oof

"The offer was communicated on Sunday morning with a price of SFr0.25 a share to be paid in UBS stock, far below Credit Suisse’s closing price of SFr1.86 on Friday, the people said. UBS has also insisted on a material adverse change that voids the deal if its credit default spreads jump by 100 basis points or more, they added."

 

[Silverstrike]

Trust in banking system restored!
View attachment 1785784

Maybe for the low brows.

 

[Klaus]

I would not rule out the deal breaking. Swiss banking authorities have put a gun to UBS. Executives are liable for shareholder lawsuits. They do not want to do it.

 

[MG0h3]

I have had to take control of my aunts financial life in the last few months.

She lives off of social security and a modest pension. Some shitbag kept ripping her off which required me to go to the bank multiple times to deal with it.

She banks at Huntington which is a joke regional bank.

I spent several hours at a branch in the middle of the day and observed:

There is an entire population that goes into the bank for cash. Mostly immigrants and old people. Working there would be depressing.

The bank employees are very low quality. They could just as well be working at Arby's.

The systems and procedures are a joke.

Example: Someone defrauded my aunt and swept her account. I challenged the charge and tried to shut the account down. They credited the account but refused to close it while the charge was outstanding. So the fraudsters came in and swept the credited amount. Absolutely. Retarded.

The flip is that these deposits are probably very sticky. Manual laborers that transact in cash are probably not paying attention to what is going on at SVB.

Hahha you nailed it on the clientele.

Laborers that deal in cash and old people.

Getting stuck behind either in line makes me want to shoot myself in the face.


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[Kornilov]

I have had to take control of my aunts financial life in the last few months.

She lives off of social security and a modest pension. Some shitbag kept ripping her off which required me to go to the bank multiple times to deal with it.

She banks at Huntington which is a joke regional bank.

I spent several hours at a branch in the middle of the day and observed:

There is an entire population that goes into the bank for cash. Mostly immigrants and old people. Working there would be depressing.

The bank employees are very low quality. They could just as well be working at Arby's.

The systems and procedures are a joke.

Example: Someone defrauded my aunt and swept her account. I challenged the charge and tried to shut the account down. They credited the account but refused to close it while the charge was outstanding. So the fraudsters came in and swept the credited amount. Absolutely. Retarded.

The flip is that these deposits are probably very sticky. Manual laborers that transact in cash are probably not paying attention to what is going on at SVB.

My Goodness. I absolutely dread having to go into a bank. I think I've physically gone into a bank about 5 times in the last 5 years and that was for specific instances where I couldnt handle my business online or via ATM.

I love Navy Fed and USAA for this purpose. If I want a car loan, in 5 minutes on their app I have a check in the mail or one waiting for me if I want to go pick it up in person. For USAA, you can call them to increase ATM limits with no problem. You need a few $K - just hit the ATM. Sold a car for $20K, deposit it in the ATM.

If you find yourself physically IN a bank, you have either done something wrong or things have gone sideways.

 

[Klaus]

Strap in, shit is about to get fun. "It's not systemic."

Analysis: Asset concerns weigh on U.S. regional bank deal talks

Some U.S. regional banks' efforts to raise capital and allay fears about their health are running up against concerns from potential buyers and investors about looming losses in their assets, five sources with knowledge of the discussions said.

www.reuters.com

 

[DiB14-SAFD]

Should be some really good buy opportunities over the next few days/week. I would be hesitant to pick any specific bank but some of the etf’s might be worth dabbling. Risk/reward is starting to look worth it.

 

[Silverstrike]

So when do bodies start falling from the 15 + floors of high rise buildings like in 1929?

 

[jshen]

My problem is time! It takes time to transfer funds to a new account and this was driving me nuts.

 

[kazman]

Just another way to strip cash from the proletariat, comrade. The inflation was not working quick enough.

 

[Deceptive]

So when do bodies start falling from the 15 + floors of high rise buildings like in 1929?

This is what I am waiting for.


For that WAP, Tyre was willing to change his pronouns to was/were.

 

[Weather Man]

Fed, ECB and four other central banks take ‘coordinated action’ to ensure dollar liquidity (update)​

Mar. 19, 2023 7:07 PM ETUS Dollar Index (DXY)UBS, SIVB, CS, SBNYBy: Jerry Kronenberg, SA News Editor9 Comments

Bet_Noire/iStock via Getty Images

The Federal Reserve and five of the world’s other top central banks unveiled an enhanced U.S. dollar-liquidity arrangement Sunday in the wake of recent banking woes at Credit Suisse (CS), Silicon Valley Bank (SIVB) and other financial institutions.
The Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank joined the Fed in rolling out an enhanced liquidity swap line for U.S. dollars.
The six central banks said in a joint announcement that they “are today announcing a coordinated action to enhance the provision of liquidity via the standing U.S. dollar-liquidity swap-line arrangements.”
Under terms of the agreement, the six banks will expand standing U.S. dollar-liquidity swap-line arrangements by increasing the frequency of seven-day maturity operations to daily from the previous level of just once per week. The banks said daily operations will begin on Monday and continue through at least April 30.
The swap lines are a set of standing facilities created in 2013 to allow the six central banks to provide each other with enough of each participating nation’s currency to provide liquidity to participating countries’ commercial banks when necessary.
By expanding the dollar swap lines’ operations, the central banks are attempting to ensure that commercials banks in participating countries have enough U.S. currency on hand to prevent insolvency.
The move comes just days after a lack of such liquidity drove U.S.-based Silicon Valley Bank (SIVB) and Signature Bank (SBNY) out of business and almost took down Credit Suisse (CS) as well. CS appears to have avoided going under by reaching an agreement announced Sunday to sell itself to fellow Swiss bank UBS (UBS) for $3.2B in stock.
The central banks said in Sunday’s joint statement that the new swap-line arrangement should “serve as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses.”

 

[jshen]

Klaus.... please..what say you...

 

[q6543]

Don’t fight the FED… especially when they join together to form liquidity voltron

 

[kazman]

One.
World.
Bank.

 

[Rb0891]

At least we have Ukraine…

 

[Tezz500]

When does cash go back to being just paper? Asking for a lot of friends…


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[Klaus]

Klaus.... please..what say you...

Central banks are essentially plugging into each other so that they and commercial banks will have easier access to US dollars.

They are doing this because the market is freaked out about liquidity. Strange things happen in these moments given all of the intertwined relationships. If you are a giant bank or asset manager or insurance company it is impossible to game what your exposure to CS really is.

The last time they did this was in 2007 after JPM was forced to buy Bear Stearns.

Now it is UBS being forced to buy CS.

Don’t fight the FED… especially when they join together to form liquidity voltron

LOL that is a funny way of putting it but it is exactly correct. Nice analogy!

One.
World.
Bank.

Pretty much. This week's Fed announcement will be the most watched in my career. The ECB showed last week that they do not give a **** and raised 50 bps.

My take is:

Raise 50 bps: market will go apeshit. Banks will fail since every fed raise makes the USTs they hold worth even less. Banks sell off hard and fed/FDIC intervenes.

No raise: market will go apeshit. The thinking will be "what does the fed know that we dont?" Banks sell off hard and fed/FDIC intervenes.

Raise 25 bps: market will be happy. Not sure if market goes up or down. Banks continue to fail as deposits continue to migrate to "SIBs" (Systematically Important Banks i.e. the ones that the fed will save no matter what)