Financial Institutions

[Foxx]

On 1/14/2023 at 2:10 PM, Nouseforaname said:

Wonder what the status is of crédit suisse ? Is it still facing bankruptcy ? 

 

Yep, it's raising it's ugly head again...

 

Credit Suisse Default Swaps Hit Record as SVB Failure Hits Banks

 

On the heels of what is currently happening, if they fail, it very well could be '08 again or... worse.

[Nouseforaname]

[Foxx]

On 3/12/2023 at 8:16 PM, Foxx said:

 

Something kind of funny with the three bank closures...

 

 

These were my thoughts...

 

[Nouseforaname]

@snafu

 

The SVB combination of factors still looks very idiosyncratic though. Even setting aside differing quality of risk management and intensity of regulations, the vast majority of banks will never have to recognise mark-to-market losses on their bond portfolios as they can and will just hold them until maturity. This isn’t junk, it’s overwhelmingly Treasuries and high-grade mortgage bonds.

What forced SVB into booking the losses was an evaporating deposits as tech companies pulled money en masse. That meant it had to sell $21bn of bonds at a $1.8bn loss, and started the avalanche. But the fragile deposit base was the crucial weakness. As the paper notes: “If SVB failed because of losses alone, more than 500 other banks should also have failed.”

Edited March 14, 2023 by Nouseforaname

[IDBillzFan]

Yeesh. How do companies look at storyboards for this type of ad and say "Dammit, THIS is what we need to do!"

 

 

[Ann]

Mistakes were made...


California Gov. Gavin Newsom failed to publicly disclose his SVB ties while lobbying for a bailout

[Foxx]

Moody's on the scene...

 

From the Unusual Whales

 

[Ann]

Financial Institutions are Required to Meet Contractual Obligations with Bridge Banks

 

In recent days, the FDIC has established two bridge banks, Silicon Valley Bridge Bank, N.A. and Signature Bridge Bank, N.A., to assume the deposits and obligations of two failing banks. All contracts entered into with banks before they failed, and their counterparties were transferred into the bridge bank by the FDIC as receiver. Accordingly, vendors and counterparties with contracts with the bridge bank are legally obligated to continue to perform under the contracts, and the bridge is obligated to and has the full ability to make timely payments to vendors and counterparties and otherwise perform its obligations under the contract.

 

Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-insured financial institutions.

 

Highlights:

● The bridge bank is performing under all failed bank contracts and expects all counterparties to similarly fulfill their contractual obligations.
● All vendors providing services should continue to provide such services.
● All authorized signers, account details, Tax Identification Number, wire/ACH instructions, and pre–failure processes remain in effect, and can and should be utilized to provide such services, until such time as the bridge bank notifies you.
● Vendors and counterparties should be aware that the FDIC as receiver is authorized to enforce such contracts (12 USC 1821(e)(13)) and to transfer the contract notwithstanding any apparent limits on transfer in the contract (12 USC 1821(d)(2)).
● Accordingly, vendors and counterparties with contracts with the bridge bank are legally obligated to continue to perform under the contract, and the bridge is obligated to and has the full ability to make timely payments to vendors and counterparties and otherwise perform its obligations under the contract.
● All obligations of the bridge are backed by the FDIC and the full faith and credit of the U.S. government.
● Failure to meet these obligations may result in legal action by the U.S. government.

[snafu]

13 minutes ago, Foxx said:

Moody's on the scene...

 

From the Unusual Whales

 

 

 

Oh, gee, thanks for piling on the rickety retail bank market, Moody's!!

 

Who do you trust more, Pro Football Focus, or Moody's?

My money is on the Magic 8-ball.

Hell, I'd trust poll results posted ATOP over Moody's.

 

 

 

 

 

Edited March 14, 2023 by snafu

[Ann]

Only ONE member of failed SVB's board had a career in investment banking - and the rest were Obama, Clinton mega-donors who 'grieved' when Trump won including one who went to Shinto shrine 'to pray'
 

● Tom King, 63, was the only member of the Silicon Valley Bank board who had experience in investment banking
● The others were major Obama and Clinton mega-donors, including one who cried when Trump won in 2016
● The board is now being investigated for its failure to act ahead of the bank's collapse, as some argue it was too focused on being woke 

 

</snip>

[Foxx]

You can check your financial institution's rating here.

[Ann]

You gotta be kidding me....
 

 

[Nouseforaname]

2 hours ago, Ann said:

Only ONE member of failed SVB's board had a career in investment banking - and the rest were Obama, Clinton mega-donors who 'grieved' when Trump won including one who went to Shinto shrine 'to pray'
 

● Tom King, 63, was the only member of the Silicon Valley Bank board who had experience in investment banking
● The others were major Obama and Clinton mega-donors, including one who cried when Trump won in 2016
● The board is now being investigated for its failure to act ahead of the bank's collapse, as some argue it was too focused on being woke 

 

</snip>

So even if they weren’t investment bankers they were still douche bags ?

[Nouseforaname]

 

[Foxx]

Just musing here. If your sensibilities are easily offended, you might want to just move along..

Spoiler

Good possibility that by Monday morning, Credit Suisse will be nationalized.

If so, God help us.

Which would be better in the long run, a complete collapse of the world banking system or a slow but steady quick decline?

Got CBDC's?

Complete control?

 

[Nouseforaname]

51 minutes ago, Foxx said:

Just musing here. If your sensibilities are easily offended, you might want to just move along..

  Hide contents

Good possibility that by Monday morning, Credit Suisse will be nationalized.

If so, God help us.

Which would be better in the long run, a complete collapse of the world banking system or a slow but steady quick decline?

Got CBDC's?

Complete control?

 

 

Switzerland lives and dies by its banking.  Most likely they will be bailed out if necessary. 

 

 

https://www.afr.com/companies/financial-services/credit-suisse-appeals-to-swiss-national-bank-for-show-of-support-ft-20230316-p5csi2

 

 

Quote

Credit Suisse CEO Ulrich Koerner moved to calm nerves, saying the bank’s liquidity base remained strong and was well above all regulatory requirements.

Koerner had said earlier in the week Credit Suisse’s liquidity coverage ratio averaged 150 per cent in the first quarter of this year.

Switzerland’s second-biggest bank had seen fourth quarter customer outflows rise to more than 110 billion Swiss francs.

Exane analysts said they saw a bailout by the Swiss National Bank and financial regulator Finma, possibly with one or more other banks, as the “most likely scenario” facing Credit Suisse.

 

They also raised the possibility of a u-turn by Saudi National Bank, which upped its stake in Credit Suisse last year as part of a capital raise to bolster its financial strength.

 

 

 

Edited March 15, 2023 by Nouseforaname

[Foxx]

24 minutes ago, Nouseforaname said:

 

Switzerland lives and dies by its banking.  Most likely they will be bailed out if necessary. 

 

 

https://www.afr.com/companies/financial-services/credit-suisse-appeals-to-swiss-national-bank-for-show-of-support-ft-20230316-p5csi2

 

 

 

 

 

I saw a video of the Saudi investor somewhere earlier today. In it, he explained that they are at 9.8 percent of ownership. If they go over 10%, then they are subject to an entirely new set of regulations. For that reason, I doubt they up their stake, but, I guess, one never knows.

[Foxx]

2 hours ago, Foxx said:

Just musing here. If your sensibilities are easily offended, you might want to just move along..

  Reveal hidden contents

Good possibility that by Monday morning, Credit Suisse will be nationalized.

If so, God help us.

Which would be better in the long run, a complete collapse of the world banking system or a slow but steady quick decline?

Got CBDC's?

Complete control?

 

 

Nationalized by Monday

 

[Foxx]

Moar

 

Statement:

[Nouseforaname]

13 minutes ago, Foxx said:

Moar

 

Statement:

 

Seems to have brought up the stock price.