tyb
>>18505747 lb Too-Big-To-Fail Banks Flooded With Deposits As Bank Run Drains Small Bank Of Cash
Probably gonna see the Reverse Repos get bigger as all these TBTFs have a huge influx of cash (they don't wanna lend out necessarily) so they'll park it at the NYFRB Reverse Repo facility overnight for 4.55% guaranteed which is way moar than a 10y
https://www.newyorkfed.org/markets/desk-operations/reverse-repo
PlaneFag CONUS Activity
Czech AF CEF05F A319 SW from JBA and arrived on 0312 from Prague depart and Keflavik AB, Iceland stop of 1h15m (the new President went to Slovakia yesterday)
SPAR528 Learjet 35 on ground at Boston-Logan Int'l from Tyson McGhee Airport, KY ground stop of 1h and departed Scott AFB earlier today
VV375 US Navy G5 WS from Teterboro Airport, N.J. and VV101 US Navy G5 continues east from it's SD Int'l depart
00000000 B-52 Stratofortrerss over central FL (Avon Park AF Range) from Barksdale AFB
C101 US Coast Guard G5 wne to Terre Haute, IN for some roundies and on ground now
PAT= Priority Air Transport
PAT008 US Army C560 SW from Davison Army Airfield PAT44 US Army G5 SW from Appleton WI, PAT981 C560 NE from Austin Int'l, PAT389 C-12U Huron NE from Memphis Int'l Airport
dubs
In fuck you Mr. open conduit to the FRB and pay for orders asshoe Ken Griffin-he not wrong here with most of this but had it been the east coast elites I'm sure his tune would be different
Citadel's Griffin Slams SVB Bailout: American Capitalism Is "Breaking Down Before Our Eyes"
In contrast to billionaire Bill Ackman's praise for the federal government's bailout of SVB depositors, Citadel founder Bill Griffin is not impressed, telling The FT that this action by US regulators shows American capitalism is “breaking down before our eyes”. As a reminder, the FDIC’s Deposit Insurance Fund normally guarantees up to $250,000 in deposits, which protects small retail customers including mom-and-pop businesses. Banks pay for this guarantee with insurance premiums, but the insurance fund isn’t intended to backstop deposits of bigger customers with more capacity to weather losses if a bank goes under.
Yet, as The Wall Street Journal's Editorial Board remarks, after venture capitalists (Democratic donors) and Silicon Valley politicians howled, the FDIC on Sunday announced it would cover uninsured deposits at SVB and Signature Bank under its “systemic risk” exception. Apparently, Silicon Valley investors and startups are too big to lose money when they take risks. They benefited enormously from the Fed’s pandemic liquidity hose, which caused SVB’s deposits to double between 2020 and 2021. SVB paid interest of up to 5.28% on large deposits, which it used to fund loans to startups. But now the FDIC is guaranteeing a risk-free return for startups and their investors. Uninsured deposits normally take a 10% to 15% hair cut during a bank failure. Some 85% to 90% of SVB's $173 billion in deposits are uninsured. The cost of this guarantee could be $15 billion.
The White House says special assessments will be levied on banks to recoup these losses.
That means bank customers with less than $250,000 in deposits will indirectly pay for this through higher bank fees. In other words, this is an income transfer from average Americans to deep-pocketed investors. Griffin warned a year ago that price pressures will remain stubbornly persistent, forcing policymakers to need to hit the brakes "hard", which will likely cause a recession, which, he warned, will leave the West facing "existential" problems. A year later, he was proved right as The Fed's aggressive rate-hikes "broke something"… “The US is supposed to be a capitalist economy, and that’s breaking down before our eyes,” he said in an interview on Monday. “There’s been a loss of financial discipline with the government bailing out depositors in full,” Griffin added.
This action by regulators raised the risk of increasing moral hazard, as WSJ notes, many banks have hedged their interest-rate risk and diversified their deposits, which comes at a business cost, but some like SVB and Signature didn’t. Now, the Fed is now saying that’s OK - we’ve got your back. This didn't need to be the way as Griffin notes the strength of the US economy meant such a forceful action was not necessary. “It would have been a great lesson in moral hazard,” he said. (not wrong but coming from thisone?…Jelly)
“Losses to depositors would have been immaterial, and it would have driven home the point that risk management is essential.”
“We’re at full employment, credit losses have been minimal, and bank balance sheets are at their strongest ever. We can address the issue of moral hazard from a position of strength.”
Finally, while The White House's first instinct, even in a financial panic, was to spin reality and hunt for political scapegoats, Griffin points the finger directly at the bureaucracy: “The regulator was the definition of being asleep at the wheel." (what part of SRO -Self Regulation Organizations do you NOT get here)
But we are sure, no government employee will ever be held accountable for 'missing' this risk - likely busying themselves with diversity and inclusion 'threats'. We give the last word to Satyajit Das, who summed the sad state of affairs up perfectly: The moral hazards around bailouts are well known. It seems now that tech start-ups like banks, auto businesses and anybody with an effective lobbyists are too big to fail even if they are too difficult to understand or to properly manage.
As Herbert Spencer put it: “The ultimate result of shielding men from the effects of folly, is to fill the world with fools.” Over the last decade and a half, the economic system and financial practices have become geared around low rates, abundant liquidity and the authorities underwriting risk taking. Moving away from this state of affairs was never going to easy, that is, if it is possible at all.
https://www.zerohedge.com/markets/citadels-griffin-slams-svb-bailout-american-capitalism-breaking-down-our-eyes
>>18505933 pb Credit Suisse Sees First Boston IPO by 2025 Amid Investor Search
Credit Suisse Retention Award Depends on 70% Jump in Stock Price
The worst bonus year for Credit Suisse Group AG bankers in more than a decade has them hanging their hopes on a 70% jump in the stock price. The annual bonus pool plunged 50% to 1 billion francs after 2022 brought a loss that wiped out a decade’s worth of profit. To cushion the blow, Credit Suisse separately handed about 500 senior staffers a so-called transformation award worth up to 350 million francs ($383 million). That only pays out if it can meet key targets of its turnaround over coming years. The stock portion of the award — which is all of it for executive board members and half of it for others — depends on the shares reaching 3.82 francs or higher on Dec. 31, 2025. While that’s 69% above Monday’s close, the stock was trading near that level as recently as November, before a $4 billion capital raise. Credit Suisse’s leaders shared in the pain of a brutal year, with the executive board receiving no bonuses and the chairman waiving his standard fee for that role, according to the firm’s annual report Tuesday. Chief Executive Officer Ulrich Koerner said in a Bloomberg Television interview Tuesday that the reshaped bank will be more focused and less risky. “We will be very profitable and we will reward shareholders.” His bankers have plenty riding on that being right.
https://www.bnnbloomberg.ca/credit-suisse-retention-award-depends-on-70-jump-in-stock-price-1.1895420
That would put it at $4.25 based on $2.50/sh and basically one good solid day of short-covering and momo-traders piling in.
BlackRock Eyes Deal to Buy Into Biggest Africa Wind Power Farm in Kenya
A public-private partnership backed by BlackRock Alternatives plans to buy a 31.25% stake in Lake Turkana Wind Power, Africa’s largest wind farm located in northern Kenya.
The Climate Finance Partnership, conceived by BlackRock and the governments of France, Germany and Japan as well as US impact organizations, will acquire the equity stakes of Finnfund, Vestas, and the Investment Fund for Developing countries, BlackRock said in an emailed statement. It didn’t disclose the value of the deal. The CFP, which secured $673 million in commitments, is focused on investing in climate infrastructure across emerging markets in order to help fast-track the global transition to a net zero economy. BlackRock Alternatives said the transaction in the 310-megawatt project is its first private-market investment into Africa. The CFP’s climate mission bodes well for Kenya’s target to make its grid’s energy sources fully renewable by 2030 from about 92% currently. Kenya is pushing various initiatives from adding renewable energy capacity to planting forests in a bid to achieve net zero status by 2050. “Developing economies are most vulnerable to the impacts of climate change,” David Giordano, the head of climate infrastructure at BlackRock Alternatives, said. “CFP’s unique blended model brings together the public and private sectors to accelerate institutional investment into clean energy in emerging markets.” Vestas, which holds a 12.5% stake in the Lake Turkana project, said the planned sale follows its “strategy to develop wind parks but not being a long-term owner,” spokesman Kristian Holmelund Jakobsen said in an emailed response to questions.
https://www.bnnbloomberg.ca/blackrock-eyes-deal-to-buy-into-biggest-africa-wind-power-farm-in-kenya-1.1895436
>>18505879 lb
German AF GAF630 GL5T on ground at Chisinau, Moldova from Koln/Bonn Airport (Luftwaffe homes base)
Arrived at the next targeted NATO member
from yesterday
Thousands in Chisinau protest against Moldova's pro-Western government
https://www.euronews.com/2023/03/12/thousands-in-chisinau-protest-against-moldovas-pro-western-government
ty BV