Anyone following the bank failure

[k3am]

www.reuters.com/business/finance/us-justice-department-sec-investigating-silicon-valley-bank-collapse-wsj-2023-03-14/

And the lawsuits and investigations begin...

[sonrisa]

And now the bailout of First Republic and rockiness at Credit Suisse.

[konapoppy]

I wouldn’t exactly call it a bail out of First Republic. I think the tactics that the big banks and the fed are jointly doing to stabilize are interesting.

I really don’t want a bunch of banks failing because of runs.

[konapoppy]

So it didn’t come out of nowhere. Regulators were already talking to them.

Gifted link:
www.nytimes.com/2023/03/19/business/economy/fed-silicon-valley-bank.html?unlocked_article_code=J5HtRM2qJDc8z1KwdzO6jMLC0QLNMS2GM-CxE3H52M3kFys83nHLeVo6uVSlOsF3AJn07ICWoCc1xVKfrst8vBVKy6s1m64DYuM4y16TAzCquioq_ZFIMPbN7tkvaw0I8klV0KM1SJgCCB5NxKbhtvmAorFovJLfGq9xKPvRPFj-Wu5UNW2AlLFYB606TwjyZ3onA14WJhjYC34U-1BP15pnDl2u9xDwwxIXTW_fWrmeGsmPStaElT1gCPvCOQ_m-khNyJ0niF0UpfUl17gzDlDOnrc9_O_Rf_n2GSqAn82mn6df2sVT7pX0yvYDtKa-G1pHRmhLDvWgbcrXsq_Gux_aGTR6w0aaEvM&smid=nytcore-ios-share&referringSource=articleShare

[k3am]

konapoppy, thanks for the article. It's interesting that the regulators were talking to them, but that doesn't get reflected in their financial statements. Disclaimer, I don't have the time to scour through their 10k (194 pages), but I see no reference to critical matters, no going concern qualification, etc. So the regulators tell them their deficient and need to raise capital for nearly a year, but not an inkling of that is disclosed in their financials? I would have certainly expected a going concern qualification, at minimum.

[BlondeSpiders]

Mar 13, 2023 17:43:33 GMT -5 msmerymac said:

Mar 12, 2023 12:15:41 GMT -5 wanderingback said:

Yes, that’s what I said. I thought SVB made the ”first move” by selling securities so that worried people.

I’m pretty sure if there was a post on here telling everyone that Bank of America was running out of funds and you should consider moving your money, many people would do just that. The government only guarantees $250,000 so yes I would move it if it were more than that. I guess hindsight is 20/20?

Well, it worried Peter Thiel, who tweeted about it, and then it spiraled from there. 

Also, technically, the FDIC has a loooong period of time to get you that money. In this case the deposits will be available tomorrow, but in a "normal" circumstance you might not see your money for a year or two.

Could we all just agree that this is entirely Peter Thiel's fault, and he should probably be cannonballed into the sun just in case?

[k3am]

And it looks like First Republic is going to go under receivership. Things were just starting to recover (work wise for me, anyways) from the SVB/Signature fiasco. It will be interesting to see what Monday brings.

[ohgillian]

So JP Morgan Chase, already the biggest bank, gets even bigger with this morning’s news re First Republic. Banking expert I am not – – I guess it seems a little bit concerning though? For them to get even bigger and bigger and bigger?

[devonpow]

We have banked with First Republic for 10 years and I’m so disappointed by all this - they were such a great bank and had the best customer services of almost any company we worked with across the board.

[k3am]

May 1, 2023 5:52:42 GMT -5 ohgillian said:

So JP Morgan Chase, already the biggest bank, gets even bigger with this morning’s news re First Republic. Banking expert I am not – – I guess it seems a little bit concerning though? For them to get even bigger and bigger and bigger?

They had to make an exception to the rules to allow JPMC to purchase the deposits. 

None of this is good news for smaller regional or community banks or just.. competition in general.