Loading ...more banks – updated on Genie
“Now there’s two genies out of the bottle that feed off psychology: inflation and systemic-style questioning of banks’ solvency.
You all know the drill: if the panic gets bad enough the Fed will step in. But, unlike days past, their options are going to be severely limited by the fact that inflation is nowhere near under control.”
https://www.zerohedge.com/news/2023-03-10/bank-run-genie-out-bottle
via ZH
*FIRST REPUBLIC EXTENDS ROUT TO 38%, TRIGGERS ANOTHER HALT
*SIGNATURE BANK HALTED AFTER DROPPING A RECORD 22%
so, at least three cockroaches ….
h/t ML
contagion
“Morgan Stanley’s Manan Gosalia, who as of yesterday was the only sellside analyst to have a Sell rating on the company with a $190 price target…”
“The delta between the two is what is known as “net unrealized loss” and it is rapidly emerging as the most important indicator of bank health.
To be sure, until recently nobody cared about net unrealized losses on bank portfolios because, well, there simply weren’t any. But once the rate hikes started and debt prices – for anything from Treasurys, to MBS, to CRE – to started to tumble, the unrealized losses started to climb, and nowhere is this more visible than in Silicon Valley Bank’s own balance sheet, where from virtually no losses a year ago, the number climbed to $16 billion as of Q3.”
h/t CG
*FDIC: SVB BANK CLOSED BY CALIFORNIA REGULATOR (ZH)
More ZH: If only SIVB had gotten a second booster shot
“To be sure, until recently nobody cared about net unrealized losses on bank portfolios because, well, there simply weren’t any. But once the rate hikes started and debt prices – for anything from Treasurys, to MBS, to CRE – to started to tumble, the unrealized losses started to climb, and nowhere is this more visible than in Silicon Valley Bank’s own balance sheet, where from virtually no losses a year ago, the number climbed to $16 billion as of Q3.” And the geniuses at the FED with all their PHD economists and trading desk wiz kids don’t know this? That raising rates so much over such a short period of time was going to cause these kind of losses.They aren’t stupid, this was an orchestrated crash they have a political agenda as always. CBDC or something else?