There’s something sketchy afoot in the world of high finance. Following the collapse of Silicon Valley Bank, the most likely first contagion bank would have been First Republic Bank; both California banks carried similar vulnerabilities. However, once the Treasury Dept agreed to cover all deposits, even those unsecured deposits over the $250k FDIC insurance protection, suddenly First Republic Bank survived.
After the FDIC announcement, a group of 11 larger banks lent First Republic a tranche of money ($30 billion) to secure its holdings and help stabilize it. Approximately six weeks passed, suspiciously perhaps the burn rate for the tranche in combination with risk averse exits says I, and suddenly First Republic starts destabilizing again. [Insert Suspicious Cat here]
The First Republic stock value collapsed further last week, and the FDIC is now trying to get a takeover bid secured before government regulators are forced into a position of receivership. I’m not dialed in to the banking industry, but it looks to me like the six-week interim phase was an agreement to give the illusion of stability and afford time for highly exposed, ¹likely well connected, stakeholders to exit.
With the Treasury taking the prior SVB position, thereby securing all deposits regardless of scope, the FDIC is now on the hook if the collapse includes a govt takeover. The FDIC seems to be playing hot potato and looking for a buyer. Additionally, the FDIC is asking JP Morgan-Chase if they are interested. JPMorgan holds more than 10% of all deposit funds in U.S. banking. From a regulatory position, JPM cannot legally take any more institutional deposits. So, what gives? It is all sketchy, all of it.
(Bloomberg) — The Federal Deposit Insurance Corp. has asked banks including JPMorgan Chase & Co., PNC Financial Services Group Inc., US Bancorp and Bank of America Corp. to submit final bids for First Republic Bank by Sunday after gauging initial interest earlier in the week, according to people with knowledge of the matter.
The regulator reached out to some banks late Thursday seeking indications of interest, including a proposed price and an estimated cost to the agency’s deposit insurance fund. Based on submissions received Friday, the regulator invited some of those firms and others to the next step in the bidding process, the people said, asking not to be named discussing the confidential talks.
Spokespeople for JPMorgan, PNC, US Bancorp, Bank of America and the FDIC declined to comment. Bank of America is considering whether to proceed with a formal offer, one of the people said. Citizens Financial Group Inc. is also involved in the bidding, Reuters reported, citing people with knowledge of the matter.
The bidding process kick-started by regulators — after weeks of fruitless talks among banks and their advisers — could pave the way for a tidier sale of First Republic than the drawn-out auctions that followed the failures of Silicon Valley Bank and Signature Bank last month. Authorities are stepping in after a particularly precipitous drop in the company’s stock over the past week, which is now down 97% this year.
Unclear to some involved in the process is whether regulators might use a bid for a so-called open-market solution that avoids formally declaring First Republic a failure and seizing it. The stock’s drop — leaving the company with a $650 million market value — has made such a takeover at least somewhat more feasible.
[…] A group of 11 banks that deposited $30 billion into First Republic last month — giving it time to find a private-sector solution — have proved reluctant to band together on making a joint investment. A few proposals that surfaced in recent days called for a consortium of stronger banks to buy assets from First Republic for more than their market value. But no agreement materialized.
Instead, some stronger firms have been waiting for the government to offer aid or put the bank in receivership, a resolution they view as cleaner — and potentially ending with a sale of the bank or its pieces at attractive prices.
But receivership is an outcome the FDIC would prefer to avoid in part because of the prospect it will inflict a multibillion-dollar hit to its own deposit insurance fund. The agency is already planning to impose a special assessment on the industry to cover the cost of SVB and Signature Bank’s failures last month. (more)
¹This is pure speculation on my part, but if you were a well-connected California big fish and you had exposure in FRB, after the SVB collapse you might ask the govt to construct an exit plan to assist you.
$11 billion flows in, you make your quiet withdrawals, and after exit the delayed outcome proceeds accordingly.
Too big to
failjail.Yup. charge us collectively instead.
privatize the gains, socialize the losses
They’re necks are still small enough to fit in the noose.
It’s a Big Club and you ain’t in it!
Socialism (guaranteed profits & asset safeguards) for the elite; rigged crony capitalism against the working class & poor.
Cough it up deplorable proles, your betters need your money!
Yes! This is a well-orchestrated demolition of the banking “system” in order to usher in the CDBC. When the masses start to realize THEIR deposits/money is not really theirs, the run on banks will be epic and cause a collapse.
Huge problem lies with this…where do you put said cash withdrawn from your unstable and insolvent “bank”? With a “financial institution” for investments? REIT’s? (Look at the real estate market…it’s imploding) Is silver /gold “safe”?
I have no doubt this is well-planned…the Communist Pedocrats and RINO’s know exactly what they are doing.
Pretty sure they will make cash worthless.
Tell people they have so many days to “exchange” or “turn in” their $’s for CBDC’s.
After that, they will no longer be accepted as “legal tender for all debts, public or private” cause they can not have cash “competing” with CBDC’s.
Unless they opt for a slower “roll out” where for a period of time, both CBDC’s and cash exist, side by side.
Canadian Govt actually produced a commercial, selling the idea od CBDC’s, pointing out all of the advantages, and basically saying “If you like your bank, and your debit card, you can KEEP them, but now we call them CBDC.”
The vast majority of transactions aren’t that different from CBDC’s in appearance.
We ARE largely a “cashless society” and cashiers may work a whole shift at say, a grocery store, and only see 1-2 customers paying with cash.
Direct deposits of income, auto pay for bills, and debits for purchases, CBDC’s will APPEAR to be very similar, AND they will insist they are the ONLY way to”save” the collapsed economic system.
Only once they have succeeded in eliminating CASH, will they really start to exploit CBDC’s inherent power to dominate and control the populace.
Closest example of something similar; I have known several people that got into a rough dispute with the IRS.
The I.R.S. sent them letters, which they ignored.
Then, the IRS “froze” (actually 1/2 froze) their bank accounts; any deposits go in fine, any checks are “insufficient funded” i.e. “bounced” and debit cards are cancelled.
These individuals who did NOT plan this, learned to use CASH for everything, both income and outgo, AND to NOT have any property, autos, etc. in THEIR name.
Without CASH, they would have been quickly forced to the negotiating table with the IRS, ..with cash I knew one guy that held out for 5+ YEARS.
That’s exactly the plan. And once they get total control, they implement social credit scores and exclude you from buying certain items and limiting amounts of other things.
I have always marveled at the morons who would bitch and curse at checkout.
Then they had self checkout, and now they have pay carts. The easier it is, the happier they are, and they even have BIG discounts if you use the scan and go apps on carts.
WOO HOO, but guess what? The next step in this evolution, is you don’t get to go to the store, the store no longer exists. Gone are the bright and fully stocked aisles of greeters who welcomed you whether you liked it, or not. Now they are massive windowless above ground bunkers manned by the army. You get what they say, and on the day they say. See what laziness gets you?
“Responsible Carbon-footprint spending rules” and “Vaccine” passports will also become a ‘thing’.
Perhaps this is when the “Tree of Liberty” will get refreshed?
On a forced exchange announcement, the next day, many would have every single penny that could be mustered out of cash and the banks and into precious metals and non-perishable food. And other items.
Gold and silver and copper would skyrocket. Texas and other states would have a fight on their hands from citizens wanting a new gold backed state currency. Even one such state currency would then immediately become the unit of exchange of choice for over half the country.
I have had a difficult time understanding how we get to an actual hot civil war, but once you have two currencies, you have two monetary policies, and that would do it.
Trial runs have already taken place in India for this digital slavery by the way.
My brother was on SSD after a crash and burn in 2008..he owed the IRS 65,000..they were only allowed to go after 15% of his SSD because he was disabled. When they went to DD he had to open a checking account..it took a month and his acct was frozen over a 7000 charge off on a credit card his wife took out..He had to get an attorney to un freeze the acct..apparently the bank can’t freeze your account if you are disabled..that was in 2013..things might have changed since then..
Gold, silver, land, food, and anything you NEED. That is where you should be directing your money, and try to do the best you can to remove yourself from utilities, and tech.
Guns and ammo!
Goes without saying lol
Agree on all except land. Just not sure about it one way or the other.
They can always ‘property tax’ the hell out of it and seize when you can’t pay or eminent domain it out of you.
Well kept older Toyotas and Hondas hold their value
True, but then like minded folk will move into the woods.
I should have trusted George Carlin more. I already trusted him on most things.
Take care of the big guy. Screw the little guy. Why am I not surprised.
Are we absolutely certain “The Big Guy”is Biden, and not Obama?
Suspicious Cat haz smarts.
The FDIC isnt on the hook for anything. We are.
Didn’t Citizens Financial Group Inc. take over SVB?
Yes, and their stock soared on the day the deal was announced since they got a sweetheart deal with the Gov taking basically all of the bad stuff while Citizens got all of the good stuff.
FCNC.A not CFG
I wasn’t sure about it, but you are correct!
Don’t forget the failure of Signature Bank of New York which happened shortly after Silicon Valley Bank failed. Also, JP Morgan is viewed as the buyer of choice by the FDIC. When she was running the FDIC Sheila Bair gifted Jamie Dimon both Bear Stearns and Washington Mutual in 2008 during the last round of bank failures. Looks like not much has changed in 15 years, only the person running the FDIC is different.
Also, just for fun – does anyone know how much of the nation’s bank deposits are currently covered by the FDIC deposit insurance fund? At the end of 2022 the DIF covered (drumroll….) a whopping 1.25% of all US bank deposits. Which makes their most recent guarantees sort of a joke. But I guess if you can create money “out of thin air” via the Fed printing press, why not?
Russian revolutionaries spoke of the ‘new Soviet man’ who wasn’t motivated by self-interest but instead wanted to be part of a collective.”
“No, it turns out he wanted to be on a yacht in a Gucci tracksuit holding a vodka and a prostitute, not standing in line all day for a potato.”
Believe it or not Maher said that.
Maher is more than a stopped clock.
As he said “You wanna talk to ME, about CANCEL CULTURE?!!! I was LITERALLY cancelled, for something I SAID!”
Don’t agree with his lefty policies,…at least not yet, but like TC and others, he IS red-pilling, and rp’ing is a PROCESS, it takes time.
Bill Maher was canceled in 2001 after disputing the cowardice of the 9/11 hijackers. He had a show called Politically Incorrect, I think on ABC that I used to watch that came on after Nightline. They yanked him quick
The majority of ‘Russian’ revolutionaries were not Russian by and large, but they were certainly Bolsheviks.
Ukraine just blew up oil in Crimea. Funny how these green agenda people like to pollute the atmosphere
Legalities? Piffle, man. Don’t you know what time it is? The more financial consolidation, the easier it will be to “transition” to Central Bank Digital Currency or some “market-based” (lol) alternative. So, damn the torpedoes of legalities, full speed ahead!
When the UniParty stops their showmanship and actually raises the debt ceiling, the Treasury will move to borrow additional money by selling bonds. The bonds that are not bought up on the open market will be forced onto the banks. Smaller banks that are marginally unsound will find themselves in the same position as First Republic ( also SVB and Signature Bank ). The Government will ‘supervise‘ the consolidation of the many small into the few big banks. This is a feature of raising the debt limit, not a flaw.
I was in a Wells Fargo investment office back in 2007+/-. On the bankers desk was a document saying Indybank is a buy.
I told him they’re about to go belly up, he looked at me like I had 4 heads. A couple months later Indy was toast and burned depositors with multiple accounts exceeding 250k aggragate, saying at time;
It’s 250k total, not per acct.
My understanding is multiple accounts=500k with joint ownership = 250k per account. Had bank go under in 2008. Had business account structured like this and FDIC covered it. Didn’t lose a penny. Of course they can use word salad in today’s world and we up the creek…
CBDC is rolling out in the former US in July. This fits with the timeline of major crashes in May, panic and chaos in June, and the all-holy government to come save everyone with more totalitarianism by summer.
Mao had nothing on the technodictators.
[Leftist] politics is the art of looking for trouble, causing it everywhere, diagnosing everything incorrectly and then misapplying all the wrong remedies. (‘Groucho’)
Who is the fat lip in the picture?
(doesn’t look like Obama)
I thought it looks exactly like Obama
I’d know that shade of purple anywhere
Agree I’d know that lip anywhere…
I remember that from The Bible series. Shook me to my core when I saw it on tv. The devil himself…
To me it looked like Obama’s lips when he was claiming he was going to fundamentally transform America.
Looks like “you”;
as in “you didn’t build it!”.
The Water Walker.
The Lightbringer.
definitely purple mouth obama
Why am I getting an Americans left behind yet again vibe about this? 😬
This wins on Twitter today.
pic via
@DerekJGrossman
right up there with this classic
Folks, spend some of your actual greenbacks now, before they becomes worthless Joebucks 😬 Take a trip ,have a party whatever.
Stock up.
I assume folks have been doing that for some time now…and it’s ongoing.
I have, and ask folks I meet to do so.
The younger they are the more clueless . . .
I think buying a tractor would make more sense. LOL
Haven’t you already?😂
Maybe, but not if you don’t have enough acreage to use it.
Get stuff fixed, now, and buy extra parts.
Good advise! I have already
Exactly, before things and services disappear.
Tires (how do yours look now…might need in the next year? just bought some…prices are much higher
Canned protein
lighters
candles or lanterns
tools
seeds
extra meds (alldaychemist has maintenance high BP meds you can order, among other things)
Good multi-vitamin
wool and cotton anything (prices are going up on both)
pain relievers ( not necessarily pain meds)
baking soda
yes, tp
extra shoes or boots
many more…and many sites to gain lists but it’s up to you what you need
ammo and means of protecting YOUR stuff
Actually, spend your fiat currency on things with INHERENT value, which you SHOULD have been doing, just as a hedge against inflation.
When cash isn’t even good for toilet paper, toilet paper will still have VALUE.
As will ammunition, tools, canned food, medications, anything with INHERENT value, and long best buy date.
Again, I would think folks on this forum would be doing all that and for years now. Do something fun as well.
Yes and maybe some cash stored at the house (a little). Some will keep using it on the upcoming new black markets for a while.
BTW, you just reminded me to go thru my long range inventories that I started last year at the house and start doubling or tripling up again.
Thanks. Had a growing uneasy feeling last 2-3 weeks that it’s getting ready to get real very soon!
Black market = free market
Getting real = prison life coming outside
It’s the derivative exposure and failure when the casino banks can’t pay on bad worthless bets and bets or bets. Crash worse than 1929 and 2007-8. Right major US Banks something like 1.3T$. Money laundering and other illicit schemes are failing and coming home to roost. The frank-Dodd bill just exacerbates it.
A couple of years ago the total derivatives held by the big banks was $57 Trillion….that’s trillion with a big fat capital “T”. Wonder what it is now.
Sorry if true, so much more. Unpayable no matter. Collapse predicate.
Yes…completely unpayable.
Back then…and now.
That’s total notional exposure, Betsy. The big banks and brokers all use master netting agreements so their net exposure is a fraction of that figure. Still large, yes, but nowhere near the gross notional exposure.
Thanks, Will….I think…
It’s a little complicated, but this is how the regulators assesss the risk to a bank or broker’s capital on their derivatives book. Example: Goldman owes Merrill Lynch a total of $100 million on all derivative contracts between the two companies if all trigger events are met, and Merrill owes Goldman $90 million on all of its derivative contracts. Goldman’s net exposure to Merrill is therefore $10 million, not the $100 million of notional derivatives value. That’s what master netting agreements do, they net out the derivatives exposure between banks. Hope that helps.
It does immensely. Very clear.
Thanks, Betsy.
This post expresses a concept nobody understands.
Not even the guys who dreamed up the idea of “derivatives.”
Bonds , banks, FDIC, the FED, the treasury and assorted other geniuses have crafted a financial system for us that is so elaborate and so convoluted that the gnomes themselves who put it in motion do not know where it is headed. For us bystanders, give up trying to understand it much less predict its direction. The financial system has it’s own direction and momentum and the best anyone can do is try and stay out of its path of destruction. Keep your money close and pay attention to your instincts.
While I understand your point, I would state it a bit differently. The big banks and brokers are essentially black boxes. Even though they put out far more in terms of financial disclosures with each quarterly and annual report than the vast majority of companies in other industries, all those give is a one month old (at best) snapshot of what their balance sheet exposures were at the end of the quarter. Post-quarter end, they could be long or short basically any asset class in the world and the outside observer would never know it.
I spent 23 years as an equity analyst analyzing bank, broker and credit card stocks. I’ve been on literally thousands of earnings conference calls, built excrutiatingly detailed earnings models on many of these companies, and sifted through thousands of their earnings reports. And yet I’d say my ability to predict what Goldman’s exposures are in the next quarter are about as good as the guy down at the corner bar sipping a pint. No one but Goldman truly knows what their exposures are on any given day.
What a difference a “t” makes?
All they did in 2009, was institute “emergency measures” that kept the economy alive, by hooking it up to “life support”.
But then, realised they had NO WAY to “cure” the patient, so they could take it OFF of life support.
Hence 14 YEARS of the “emergency measures” and now, they have decided on a plan; rescind the emergency measures, let it crash and burn, and then implement CBDC, as the solution.
Oh, and in the process raid pension plans, IRA’s and 401k’s, and SS and Medicare cause muh other peoples money.
This is why the government needs 87,000 new IRS agents, to squeeze the blood of us taxpaying turnips to pay for it.
Armed ones as well…dispersed to every state.
No wait…Congress said they were going yo refund the IRS agents. However, there seems to be a …disconnect saying and actually DOING.
It won’t just be tax enforcement. 😒
SVB was a pipeline/laundry for club DNC/Mandarin.
The Sad truth is only small fraction of people are aware of how effed we are. Joe and Mary six pack will be blindsided
Everyone will be blindsided that is Christian, irrespective of their net worth
I am not at ALL convinced your position is valid, Preppin247.
For many years, the valid mantra of us preppers was to bemoan “the sheeple”, so much so that I think many are stuck in that mindset, and wouldn’t recognise that the sheeple have awoken, even if it was right in front of them.
ITS HAPPENING, ALL around us. The # of those clinging to their denial is getting vanishingly small.
Dutch, I agree with both you. I do think the steeple are awakening but the newly awakened ‘Joe and Mary six pack’ may have not had enough time and resources (cash) to prep like the rest of us.
These young folks, particularly the blue collar, are struggling just to make ends meet as it is.
It’s impossible to know for sure. Personal Debt is rising. Are these people optimistic about being able to catch up in the future or is it a last ditch effort to maintain their living standard? I’d wager more people know who their NFL team drafted than know how much the FED has printed since SVB
I’m afraid “render unto Caesar, what is Caesar’s” may need some reexamination,…
Caesar is overdue some rendering.
Bubbles the not so mad cow gets worried when she hears the word ‘render’ or any variation of it….
Definitely whisper such around the livestock.
I worry more and more that our nation is in the hands of compulsive gamblers.
Someone is whispering into Joe’s ear about digital currency
Several reasons.. one they are still holding a lot of the money from that FTX exfiltration game. They still need that money for the upcoming election. Another is those big players you speak of are likely in on that nonsense and they are getting their cut and interest while they hold on to it. The Dems can’t leave them hanging without cutting off their own funding now can they.. Also don’t forget that digital currency nonsense on the horizon. You can’t push a new currency without destabilizing the old system. If we had destabilized things by a massive strike and or bank runs of our own we would be the ones in position to dictate things but alas that play is not in the cards it seems.
That’s the rumor going around trading chat rooms, that all three of the banks which failed so far (SBNY, SIVB, FRC) were somehow tied up in the crypto stuff. And the dot.Gov wants to end all crypto b/c they can’t control it.
oh they can control it.. they just haven’t flipped that switch yet.. Do you control the electricity needed to use bitcoin? can you hold it.. can you exchange it with others without that electricity? do you control that computer CPU.. the drivers, and OS it runs? it’s just another lie. Unless of course you have private secure BBS sites that can act as transfer portals for bitcoin and even then you still don’t control the electricity problem or anything else. It will be used against you long before you realize it. it already is.
“$11 billion flows in, you make your quiet withdrawals, and after exit the delayed outcome proceeds accordingly.”
EXACTLY
Just like the last financial ClusterField. The big guys make money and the little guys get squeezed.
They can’t keep up this charade for much longer.
It’s a slow rolling disaster reality show.
Most Americans don’t have a ton of money in the banks and yet, we will end up paying for this.
My expectation is that all the banks will go on Holiday at some point for some period of time.
Meanwhile, Middle America should be stocked up on essentials, have cash in hand, and hold on.
.02
Make bartering great again.
Lots of commodities and/or skills and labor that people must have that can be bartered with the right terms.
Example like trading some home repairs for a few food stuffs or other. Only limited by imagination and agreement of the terms between parties.
If anyone is dumb enough to exceed the $250,000 PER depositor in a SINGLE bank they shouldn’t be in business. And now, we taxpayers that would never have that problem are having to pay for bailing them out?
Something ain’t right – smells like… Class action.
No standing found, no class action and then no (visible) problem.
Farfetched?
Yet, here we are with time enough for the right people to pull their money out of this bank before it implodes and the rest of us get to bail it out with our dollars.
How about business owners who have payroll accounts over $250,000… should they be obliterated?
Asking for a friend…
Chairman Xi votes yes
Agree they should be protected.
I just want to know what the Democrats did to sabotage First Republic so they could divvy it up among their friends.
Wonder if the big cats were from Silicon Valley? We know from Twitter files that the government owes a lot of favors.
Sundance, any thoughts on what goes first, the banking system or the stock market? Treepers please weigh in as well.
What is the most likely sequence? If it is stocks and bonds first, there is an available strategy. If the US banking system goes first, I am stumped how to navigate that.
For the last six months holding cash or cash equivalents while waiting on stocks and bonds to capitulate made the most sense, while staying long on the stocks with either real underlying tangible assets or strategic positions in key areas.
Watching the stockmarket levitate despite mostly bad news all week, in the face of an incoming credit crunch and a commercial real estate crash is causing real doubt about the hold cash and jump in at generational lows strategy.
Thought?
My 2c – we are overdue for a recession in this country. And if you look at the numbers the banks reported in April non-performing assets and credit losses are increasing rapidly. The CEO of card lender Capital One is calling for 5% unemployment by year end 2023 and the Fed isn’t too far behind at a projected 4.5% UE rate by 12/31/23. I’d limit your stock market exposure and hold as much cash as possible, spread around several banks if you’re over the $250k limit at any of them.
Tell me if this sounds familiar.
Starting in October 1979, the Federal Reserve of the United States raised the discount rate that it charged its member banks from 9.5 percent to 12 percent in an effort to reduce inflation. At that time, S&Ls had issued long-term loans at fixed interest rates that were lower than the newly mandated interest rate at which they could borrow. When interest rates at which they could borrow increased, the S&Ls could not attract adequate capital from deposits and savings accounts of members for instance. Attempts to attract more deposits by offering higher interest rates led to liabilities that could not be covered by the lower interest rates at which they had loaned money. The end result was that about one third of S&Ls became insolvent.
Some of the best discounted debt you could buy was from the S&L failures. Banks are licking their chops to buy at a discount.They aren’t going to buy at near par value.
Don’t think form a minute the Fed didn’t know this would happen. We are just repeating the slow roll of the S&L failures.
Hugh McColl at Nationsbank made a killing buying failed Texas S&Ls back then.
why not…. everything else is criminal to the level of Treason in this government
and they’ll get away with it all because no one in or out of government is willing to use their constitutional rights and dare say “duty” to the republic.
it’s a big club alright..
we’re living in do or die times now.
Americans students should read Atlas Shrugged to learn how ‘frozen’ bonds and assets get unfrozen for ‘the connected’ in DC by employing pull peddlers
tell truth that mccain in person syria/libya prove also cia did coup in ukraine!
obama is bush 3-4th term, biden 5th
recall 2001 wesley clark kill 7 country 5y 2001 memo said libya syria!
2.3 trillion missing 2001 to do proxy libya-syria-2004 ukraine cia agitators
putin files created to cover up coup 2014 nuland f eu with by obama greenlight shelling donbass
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J. P. Morgan has been kind of sketchy for a whole century. One of his VPs, Dwight Morrow, became Ambassador to Mexico, and then father-in-law to Charles Lindbergh. Morrow’s son went to super-elite Groton School. Morrow’s daughter Mrs. Lindbergh was hanging out with Eero Saarinen at Cranbrook School in Michigan later on–Mitt Romney was there some years later.
It’s a big club, and we’re not in it.
Now go read about the bankers who formed the Fed in 1913 (which is not and never was part of the US Gov’t) and you’ll really be worried.
Fascinating… I have walked the grounds of Groton Academy in Gorton (grah-ton), Massachusetts and being from Minnesota I know that Chas. Lindbergh, the dad, as a Minnesota Congressman, was vehemently opposed to a Central Bank and that the son, the pilot, was an unabashed voice for America First.
Lo and behold, his son is kidnapped and murdered.
Today it would be ruled a suicide because the pilot didn’t let the baby transition.
“J. P. Morgan has been kind of sketchy for a whole century.”
Understatement of the century.
they are using these failures as a way to fund their ngo’s……
First Republic is a bank that targets (soon, targeted) high net worth individuals. The bank was given plenty of time for its clients to “get out.” What’s left is probably a pile of real estate and construction loans, at interest rates well below today’s market rates. Whoopsie!
The large banks who are on the short list of potential buyers (undertakers) will take the First Republic’s loan book for pennies on the dollar and then “re-package” the loans and presto! The loans will suddenly become more valueable.
Bingo.
Fauxahontas is boss of FDIC?!
The economic chaos will begin the day, probably in June, that Treasury Secretary Yellen announces a default on the U.S. government debt “because” Republicans did not pass a “clean” debt limit extension bill. For more on this prediction, see our American Thinker commentary from a couple weeks ago:
https://www.americanthinker.com/articles/2023/04/the_stock_market_crash_will_occur_right_after_the_debt_ceiling_vote.html
So-called default is a joke. When you run low on cash, do you automatically stop paying your mortgage? No, you cut other expenses first. Our Goverment is no different – let the non- essential employees (which is most of them) take an unpaid vacation for 6 months. The rest of the country won’t notice they’re sidelined. Fixed!
Impeach crooked Joe!
I’d like to see the 2008 version of that bingo table. Just off the top of my head – Washington Mutual, Lehman Brothers, Bear Stearns, Ambac, Citigroup (shareholders rec’d 90% dilution but it didn’t actually fail), AIG (ditto), Merrill Lynch (would have failed had not the Fed held a shotgun to Bank of America’s head and forced them to buy Merrill), Goldman (saved by becoming a BHC)_ Morgan Stanley (ditto), IndyMac Bank, CountryWide Financial (Mozillo the tan man never received an ounce of punishment), and probably a lot more failures I’ve forgotten about which happened in 2007 and 2008.
And where does this leave the little guy?
Abandoned on the tarmac.😒
Another say older and deeper in debt
The market didn’t know how bad the deposit flight was until FRC reported last week. Then everybody except Cramer saw how bad it was. Borrowing capacity at the Fed and Home Loan Bank was not going to be enough. The platform was “unbankable,” ie no one could reasonably explain why they were still there.
It’s almost like some sort of Great Reset.
The $250K FDIC insurance is not quite as simple as “each depositor”. For example, you can be covered up to $1M if both spouses are on the account, along with two beneficiaries listed on the account. And this is true for each individual bank or financial institution that is covered by FDIC.
Former FDIC Chair on Bank Collapses, the Federal Reserve and “Potential Fragility” in the Financial System
There are other banks that are having pressure. And I do worry about community banks, in particular, when for these larger institutions, $100 billion, $200 billion, that’s not huge. But if you’re a $1 billion community bank, it’s a big difference. And what happens to them if the market starts assuming anybody, say, over $100 billion is going to have their uninsured deposits protected? Then that money is going to start going out of the community banks into those institutions that are viewed as having favored status. So these one-off bailouts that are particularly just for a couple of institutions create a lot of distortions and competitive disadvantages for others.
https://www.pbs.org/wgbh/frontline/article/former-fdic-chair-bank-collapses-federal-reserve/
How much damage can one President continue to do to our once great nation?
I’m talking about Obama, not Biden by the way.
Everyone knows Biden is out to lunch.
The government wants to control the money supply, the food supply, and the medical supply.
Here we go again. UBS is CCP controlled and a major stakeholder in the Dominion Voting Systems. And, from the looks of it, the UBS or should I say CCP came to the rescue of the First Republic Bank. I leave it to the reader to judge based upon the facts. So does this mean that the investors in the First Republic Bank, are really investors in the UBS bank and therefore the CCP? And did they just rescue the CCP investments with U.S.A. money, in part.
The tumult at First Republic, whose shares ended down 47.1%, overshadowed an otherwise positive day for banking stocks globally, led by relief that UBS Group AG’s (UBSG.S) takeover of 167-year-old Credit Suisse Group AG (CSGN.S) would avert a wider banking crisis.
“There (is) more good news than bad news on the banking front,” said Art Hogan, chief market strategist at B. Riley Wealth. “First and foremost, the Credit Suisse, UBS merger certainly takes a lot of stress out of the global banking system.” So does this mean the major invested in the
Bonds issued by major European banks fell after some Credit Suisse bondholders were wiped out in the deal. But UBS shares closed up 1.3%, bouncing from a 16% slump triggered by concerns about the long-term benefits of the deal and the outlook for Switzerland, once considered a paragon of sound banking.
https://www.reuters.com/business/finance/credit-suisse-takeover-central-bank-action-calm-jittery-markets-2023-03-20/
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BREAKING: Investigation Reveals Chinese Govt-Tied Bank Has Majority Stake in Dominion Voting Systems
By Reformation Charlotte
December 1, 2020
Beijing Guoxiang (33%)
UBS (24.99%)<————————————-
Guangdong Comm. Group [zh] (14.01%)
China Guodian (14%)
COFCO Group (14%)
https://reformationcharlotte.org/2020/12/01/breaking-investigation-reveals-chinese-govt-has-majority-stake-in-dominion-voting-systems/
The equations of the closed system (borrowing money at interest) is about to shoot off to infinity (collapse) by the equations of an open system (govt prints its own money like china).
Sad thing is, our founders were smart enough and said to do an open system.
A group of antichrists convinced us to do it the other way.
Some are proficient with words, some are proficient in mathematics.
Cramer is on an MSM outlet to mislead the Rubes and Deplorables
Treasury Department now belongs to the large central banks.
Now? Try the last 100 years.
Treasury Department
nowbelongs to the (people who own and control the) large central banks.