First SVB, now Signature Bank, who's next?
Sitting on a trading desk, we've been watching signature struggle for a while, but weren't expecting them to close down today. I guess everyone has been pulling cash from banks for a while now.. thoughts? Have been seeing retail flow tons of funds into treasuries and other FDIC insured product. Countless institutions have bond portfolios with underwater product who dont want to take losses. Rip the band aid or halt lending... what's worse?
Can't wait to see what happens..
How disastrous is this? Can someone please explain the severity of what's going on?
Let me get my crystal ball © 2023 Crystal Ball Consulting
It's possibly more bad than good. Could be immaterial or material, in either the short or long run (potentially both).
Really depends on the politicians, fed and market sentiment. You also need to be mindful of global investor sentiment. Real cash generation and risk management doesn't really matter anymore. Until it does.
Lot of puts and takes, what have yous and the like. So, kind of business as usual, until it isn't. Then it's unprecedented times, which have been the norm for some time.
Well, doesn’t Yellen have a solution to help the banks already?
It is unprecedented times given what’s happened (Covid included).
The government hasn’t announced that they plan to stop raising rates, so it’s an assumption point that the government will continue to raise rates and see what happens.
I’ve heard on the news that the Feds can only utilize a blunt instrument.
Barney Frank (of Dodd-Frank) and Ivanka Trump on the board of SBNY 😮
Only one of those is accurate and it isn't the attractive one
https://investor.signatureny.com/governance/board-of-directors/default…
mb, she was appointed 2011, left 2013
Western Alliance is next.
Sure, reaffirm your deposit strength (I think $61B?) but when you have that degree of exposure to HTM assets and shrinking liquidity from fear, you’ll be forced to take similar losses which may spark another run.
I’m definitely wrong because I don’t know anything but it’s fun to pretend like I understand.
May be risky, but could it be a good buy now?? UPDATE: just bought a small lot of FRC stock - now praying it doubles (or I loose it all)
beat me to it
a healthy clearing out of the underbrush, I hope bankers are not bailed out this time around though, we'll all be better for it
Wow, already up 50% since ur pic.
Down 83 and then up 50 is still down close to 75%, not exactly a recovery yet
https://www.foxnews.com/politics/head-risk-assessment-silicon-valley-ba…
Lol you knew that was coming...
Jos. A Bank
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