tyb
>>18493300 pb Silicon Valley Bank, FDIC, Federal Reserve Stress Tests and Hold to Maturity for TBTFs and others
>>18498411 lb
PF: ABIDE99 E-4B Nightwatch departed Offutt AFB and will go to Tucson-Davis Monthan and 09-0016 C-32A also up from JBA-this was used to take potato from Delaware to JBA yesterday unannounced >>18495428 pb
First Republic and Western Alliance shares paused for trading as regional bank jitters persist despite Fed backstops
Trading in shares of First Republic Bank and Western Alliance Bancorp. was paused after steep initial losses on Monday as bank solvency fears persisted Monday following the failure of SVB Financial and Silvergate last week. First Republic Bank’s FRC, -75.60% stock initially dropped 65% in morning trades after big losses late last week.
Western Alliance Bancorp’s WAL, -83.70% stock also fell sharply, dropping 75%. The selloff of the Arizona-based bank’s stock was set to surpass its record one-day drop of 39.4% suffered on Sept. 19, 2008, in the midst of the financial crisis. The KBW Nasdaq Bank Index BKX, -13.03% fell 12% Monday morning.
On Friday, Western Alliance tried to reassure investors by saying “deposits remain strong” and “liquidity remains robust,” with $61.5 billion in deposits as of March 9 and $2.5 billion in cash held on its balance sheet. The stock reaction came after First Republic Bank said Sunday it had received additional liquidity from the Federal Reserve and JPMorgan Chase & Co. JPM, -1.31%. The San Francisco-based bank said the new funding gives it more than $70 billion in unused liquidity. The drops came amid quick developments over the weekend by banking regulators seeking to secure deposits following the failures of SVB Financial Group SIVB, , Silvergate Capital Corp. SI, -2.98% and Signature Bank SBNY, -22.87%. Raymond James analyst David J. Long on Monday cut his rating on First Republic Bank’s stock by two notches to market perform from strong buy on worries about a drain in deposits affecting earnings per share. “Despite the added liquidity sources, we believe deposit balances will remain under pressure in the immediate near-term,” Long said. “While we believe the bank received some deposit inflows on Thursday during the bank run at SVB Financial (SIVB), additional panic among large depositors may have driven deposit balances lower since Thursday.”
Long withdrew his $150 price target for First Republic and said the stock faces “some immediate near-term price risk until the panic surrounding bank deposits settles.” He said the bank may draw a premium valuation in the future given its “impeccable customer service and pristine credit metrics.” (kek!..when a domino falls none of that matters but you keep telling people that)
Meanwhile, the Federal Deposit Insurance Corp. said Monday it has transferred all deposits, both insured and uninsured, of the former Silicon Valley Bank to a newly created full-service FDIC-operated bridge bank in an action that seeks to protect all depositors of the bank. Last week, MarketWatch columnist Philip Van Doorn included First Republic on a list of 10 banks showing contracting margins over the past year, or the smallest expansions of margins. UBS analyst Erika Najarian on Friday said First Republic Bank does not have the same exposures as ailing technology sector lender SVB Financial Group. SIVB, . “We believe [First Republic Bank] is no [SVB],” Najarian said, adding that a recent meeting of UBS and First Republic CEO Mike Roffler suggests that venture-capital and private-equity deposits were just 8% of the bank’s total. By comparison, deposits from funds and early-stage companies made up 52% of Silicon Valley Bank’s balance sheet, Najarian said.
First Republic’s available for sale securities (AFS) portfolio is 1.7% of earning assets, versus 14% for SVB before liquidation. “[First Republic Bank] has historically thrived in periods of disruption, given its well-earned reputation as a ‘quality’ bank,” Najarian said. “While the bank has grown much since, one of [First Republic’s] most banner origination years was during the depths of the Global Financial Crisis.” First Republic’s stock fell 14.8% on Friday. The troubles at the banks have weighed on regional bank stocks, with the KBW Nasdaq Bank Index down 3.9% on Friday. The index had lost about 16% of its value in the past five days of trading, prior to Monday’s action.
https://www.marketwatch.com/story/first-republic-banks-stock-slides-amid-continuing-jitters-about-regional-banks-72b17977
https://finance.yahoo.com/quote/IYF
https://finance.yahoo.com/quote/WAL
Already have some talking heads calling for a stop in rate raises or some even saying to lower them and 'Hair' Bair (the former FDIC head in charge of all the shotgun weddings in 2007-2009) sez stop
The Fed needs to stop raising rates now, former FDIC chair says after Silicon Valley Bank failure
Sheila Bair, a top banking regulator during the 2008 financial crisis, says the stunning implosion of Silicon Valley Bank is exactly why the Federal Reserve needs to halt its war on inflation.
“The Fed needs to hit pause and assess the full impact of its actions so far before raising short rates further,” Bair, the former chair of the Federal Deposit Insurance Corporation, told CNN on Sunday in a phone interview.
“If they paused, it would have a settling effect on the markets,” said Bair, who led the FDIC through the 2008 failure of Washington Mutual. Silicon Valley Bank is second only to Washington Mutual in terms of the biggest bank failures in US history. Before Friday, investors were anticipating a major interest rate hike of a half percentage point at the Fed’s March 21-22 meeting. Bair said a hike of that size would not be “well advised” given the Silicon Valley Bank collapse.
https://ktvz.com/money/cnn-business-consumer/2023/03/13/the-fed-needs-to-stop-raising-rates-now-former-fdic-chair-says-after-silicon-valley-bank-failure-2/
Currently the FEDWatch has it skewed at no hike to 25bp when they had it at 50bp last week-so again imporatnt to watch what they do NOT what they say
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html
Now what they may do is raise the FDIC limits after the morning wash out as they've let this 'sink in' prolly to about $tree-fiddy (350K) or moar so that will 'inspire CONfidence' and try to stem the lines that are forming at all these "banks"
people care when they have the perception of losing munee
And I say perception because it wasn't their money unless they took it out.
Credit Suisse CDS Hits Record High As Silicon Valley Banking Crisis Spreads To Europe
Shares of European banks plunged on Monday, as yields on European bonds dropped on the implosion of Silicon Valley Bank could force central banks across the Western world to either slow the pace of interest rate hikes or even pivot if more regional banks fail.
Credit Suisse Group AG is one bank that caught our attention this morning. The shares of this troubled bank, trading in Switzerland, plunged as much as 15%, hitting a new record low. This decline was due to concerns about the bank's ability to recapture client funds, revive its investment banking business, and manage ongoing legal and regulatory investigations.The selling pressure on Credit Suisse shares returned thanks to the collapse of SVB, sparking a crisis of confidence throughout the banking industry in the Western world. As a result, the Zurich-based lender's five-year credit default swaps jumped to a record high of 448 basis points, data compiled by Bloomberg show. And it's not just Credit Suisse, whole financial sector is seeing CDS spreads widen. Credit Suisse's demise and shares falling to a record low come as the bank faces a long list of challenges. Just last week, shares hit a new low after it announced it would postpone the release of its annual report at the request of the Securities and Exchange Commission.
Another concern is whether the bank can survive, given the substantial outflows from its wealth management division. So much for aggressive interest rate hikes in Europe.
*TRADERS SEE ONLY 50% CHANCE OF HALF-POINT HIKE BY ECB THIS WEEK
— zerohedge (@zerohedge) March 13, 2023
As for US regional banks, and to prevent a wave of failures, rate traders have priced out hikes for the rest of the year as some of the first cuts could arrive in the second half of the year. >>18498655
https://www.zerohedge.com/markets/credit-suisse-cds-hits-record-high-silicon-valley-banking-crisis-spreads-europe
It was already scheduled
They do closed door meeting all the time (they just amended it to account for current habbenings)
>>18493300 pb
>And that "Emergency Meeting" scheduled for tomorrow was already on the books as the FED does do closed-door meetings from time-to-time so that is not unique…they changed the title to reflect the current habbeings is what habbened with that one.
Closed Board Meeting on March 13, 2023
Advanced Notice of a Meeting under Expedited Procedures.
It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 11:30 a.m. on Monday, March 13, 2023, will be held under expedited procedures, as set forth in section 261b.7 of the Board's Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th and C Streets, N.W., Washington, D.C. and by audio/video conference call. The following items of official Board business are tentatively scheduled to be considered at that meeting. Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.
https://www.federalreserve.gov/aboutthefed/boardmeetings/20230313closed.htm
Breh
We've been over this too many times You don't take over a country by buying stocks
Fix yer horrible memes and FO with yer red text
Nathan Rothschild knowing that information is power stationed his trusted agent named Rothworth near the battlefield. As soon as the battle was over Rothworth quickly returned to London, delivering the news to Rothschild 24 hours ahead of Wellington's courier. A victory by Napoleon would have devastated Britain's financial system. Nathan stationed himself in his usual place next to an ancient pillar in the stock market. Knowing he would be observed he hung his head and began openly to sell huge numbers of British Government Bonds. Believing this to mean that Napoleon must have won, everyone started to sell their British Bonds as well. The bottom fell out of the market. Rothschild had his agents buying up all the hugely devalued bonds.
https://www.mindcontagion.org/banking/hb1815.html