***OFFICIAL*** Bank Failure/Crisis Thread (1 Viewer)

[Leeroy Jenkins]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

 

[FreeBaGeL]

This is a little bit of an existential crisis for crypto. I think we are beyond the point where anyone will ever use crypto as anything but a forex like trade. Problem is you exchange USD for it, and then where does that USD end up? Eventually you probably want to give your crypto back for USD, but if that bank puts it in to the safest treasuries possible and yield goes to pot now what?

So how much of a hedge is crypto to fiat really if the risk correlation is stronger than anyone thought?

I mean we saw what SBF did with the deposits, gambled and lost on more crypto. SVB gambled and lost on interest rates, what's next?

I don't think yet another bank failing because they mismanaged other people's money is a bad thing for the technology that allows you to hold your own money instead of having to give it to a bank to gamble with.

 

[Chadstroma]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Well that seems downright silly from a non financial world perspective

Which is why I don't use it. I had it drilled into me early in my financial services career to talk English and not banking because the only important people you talk to don't talk banking... it can be hard though and you easily can slip back into the lingo and not even realize it.

 

[Chadstroma]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

I recently found out why.... as it always confused me why MM was million and then found out the reason and was like duh..... Roman numerals.

 

[Chemical X]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

I recently found out why.... as it always confused me why MM was million and then found out the reason and was like duh..... Roman numerals.

correct, K aligns with metrics.

 

[Don't Toews Me]

Subscribe to read | Financial Times

News, analysis and comment from the Financial Times, the worldʼs leading global business publication

www.ft.com

If regulators had evidence that uninsured bank runs would be widespread absent these bailouts, then a “systemic” determination might be justified. But if that is the case, it would make more sense to temporarily backstop all uninsured accounts and charge banks a fee to cover losses.

When I chaired the FDIC during the financial crisis, we instituted such a programme for uninsured transaction accounts used by institutions for payroll and other operating expenses. We did this to protect community banks who were losing uninsured business customers to banking giants such as JPMorgan Chase and Wells Fargo.

The programme was successful in ending runs on community banks. But despite its success, Congress decided to ban this kind of even-handed help to all banks (even while preserving regulators’ ability to do one-off bailouts through systemic risk exceptions). But Congress did provide for a streamlined procedure to approve such a programme, which regulators should now pursue if they truly have reason to fear widespread runs.

Otherwise, regulators will have to pick and choose who they want to help. If there are more failures, who are they going to bail out next? Anyone over $100bn? What about community banks? If they create a perception that $100bn is the new “systemic” cut-off, uninsured deposits will surely flee community banks for those in the $100bn club. And to add insult to injury for the smaller banks, by statute they will have to pay special assessments for costs associated with covering uninsured depositors at their larger brethren.

The mere fact that regulators designated two midsized banks as systemic implies they think the system is fragile. My instinct tells me that most regional and community banks are basically sound. The main thing we have to fear is fear itself cascading into bank runs that will force otherwise healthy banks to collapse.

 

[the moops]

i’m a banker. we use m for 000s, mm for 000,000 fyi. no k here.

Almost all of us dolts are not bankers. When talking to us, please use K's. Thanks

 

[Chadstroma]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

I recently found out why.... as it always confused me why MM was million and then found out the reason and was like duh..... Roman numerals.

correct, K aligns with metrics.

wait... Americans actually do use something related to the metric system?!

 

[The Z Machine]

wait... Americans actually do use something related to the metric system?!

Every day

 

[Poke_4_Life]

I just wanted to chime in and say I'm really enjoying this thread. Keep up the good work.

 

[Don't Toews Me]

How Biden saved Silicon Valley startups: Inside the 72 hours that transformed U.S. banking

A historic rescue of a distressed industry came together rapidly, reshaping the government’s relationship with banks in far-reaching ways.

www.politico.com

Avoiding quoting the more political parts of the article:

Bob Kocher, a partner at venture capital firm Venrock and former Obama-era White House official, said some panicked companies are going as far as transferring all their money into board members’ individual bank accounts while they set up their own new accounts with major financial institutions.

“There’s no way now as a board member you can sign off on putting all your money into a regional bank,” he said, adding that he expects to see significant outflows at similarly sized institutions like First Republic Bank and PacWest Bancorp. “Everybody’s racing to put their money into JPMorgan and Goldman Sachs.”

Beyond making payroll, Kocher said, SVB’s failure raised questions about how companies would pay for basic services like cloud storage and website maintenance, as well a constellation of smaller suppliers, if their deposits got tied up in a troubled bank.

“I think it’s going to take at least a month or two for things to calm down and settle out,” he said.

 

[General Malaise]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

Hedge Fund: K = Thousands MM = Millions

 

[General Malaise]

I’m not sure if this has been posted yet—but Coffeezilla really does a nice job simplifying and explaining some of what happened with SVB on youtube. It’s an easy, short and entertaining watch.

Banks Are Collapsing... Here's Why

What now. And what's next?Support: ⺠Patreon: https://patreon.com/coffeezillaFollow: ⺠Twitter: @coffeebreak_yt⺠Instagram: @coffeebreak_ytCredits:3D Artist:...

www.youtube.com

That's a pretty solid summary and I think this guy does a good job for the layman, but speaking as somebody who hasn't watched CNBC or Cramer in over a decade, WHAT THE EFF happened to his voice????

 

[Stoneworker]

The mere fact that regulators designated two midsized banks as systemic implies they think the system is fragile. My instinct tells me that most regional and community banks are basically sound. The main thing we have to fear is fear itself cascading into bank runs that will force otherwise healthy banks to collapse.

Good article. Thanks for posting.

I highlighted the bolded in light of all the predictions the Fed will continue raising interest rates at the next meeting. Can't see how Powell can defend doing so while simultaneously de facto declaring a systemic threat largely caused by the exact same tightening policy.

 

[Andrew74]

The mere fact that regulators designated two midsized banks as systemic implies they think the system is fragile. My instinct tells me that most regional and community banks are basically sound. The main thing we have to fear is fear itself cascading into bank runs that will force otherwise healthy banks to collapse.

Good article. Thanks for posting.

I highlighted the bolded in light of all the predictions the Fed will continue raising interest rates at the next meeting. Can't see how Powell can defend doing so while simultaneously de facto declaring a systemic threat largely caused by the exact same tightening policy.

If they do raise rates I think they say there are two problems with two answers. Higher rates to combat inflation and the BTFP for bank liquidity issues. They can keep raising rates while the BTFP firebreaks any financial stability issues.

 

[Runkle]

I'm not knowledgeable at all about this, but from what I've read the SVB investments weren't bad. Those will still pay out eventually, correct?

Here's a super-simplified version: The bank took in a bunch of money from people depositing. They needed to put that money somewhere safe that earned some kind of return, and there's nothing better, safer, or more reliable that US government bonds. Unfortunately, at the time, bonds paid like 1.5% interest... for every $100 they bought, they'd get back $101.50... but over time, yes, those will still pay out at a profit. But, when you buy bonds, you lock up the money for like 20 years.

The way around that timeframe, of course, is the bond market, where if you need to get out of a bond before the 20 years are up, you can sell it to someone else. So when the people who deposited suddenly wanted their money back all at once, the bank would go to the bond market and try to sell the bonds.

But, now that interest rates have gone up recently, you can buy bonds direct from the government that pay, like, 4%. So all the buyers out there would look at SVB's bonds and ask "why would I buy a 1.5% bond from you when I can buy a 4% bond from Uncle Sam?" The only thing SVB could do, then was to sell their bond at a loss. That is, they'd sell their $100 bond which paid out $101.50 to a buyer for only $97. That way, the buyer was getting a favorable return... for him, he's paying $97 for $101.50, and getting about 4% return on his money, same as he would get from Uncle Sam. That discount makes it possible for SVB to sell at all. But for SVB, that means they're losing 3% of their depositors money. Coming up 3% short on their customers is what makes a bank fail... no one is going to stay with them.

 

[The General]

Do banks have to list where they have all their money invested? Like if they have way too much in these long term bonds they purchased years ago.

 

[Don't Toews Me]

Charles Schwab CEO says firm is seeing significant inflows even as stock gets hit during banking selloff

www.cnbc.com

 

[Desert_Power]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

Hedge Fund: K = Thousands MM = Millions

I go K, mm, and B because the single m will confuse too many folks who lack a trading/markets background. People that use $mio though....deserve to be ridiculed.

 

[Stoneworker]

The mere fact that regulators designated two midsized banks as systemic implies they think the system is fragile. My instinct tells me that most regional and community banks are basically sound. The main thing we have to fear is fear itself cascading into bank runs that will force otherwise healthy banks to collapse.

Good article. Thanks for posting.

I highlighted the bolded in light of all the predictions the Fed will continue raising interest rates at the next meeting. Can't see how Powell can defend doing so while simultaneously de facto declaring a systemic threat largely caused by the exact same tightening policy.

If they do raise rates I think they say there are two problems with two answers. Higher rates to combat inflation and the BTFP for bank liquidity issues. They can keep raising rates while the BTFP firebreaks any financial stability issues.

Yes. But the BTFP is only backstopped to $25B in an industry of trillions. By declaring two banks systemic the Fed is admitting many more are at risk. Some quotes from a recent FT article:

The U.S. banking system’s market value of assets is $2 trillion lower than suggested by their book value of assets accounting for loan portfolios held to maturity. Marked-to-market bank assets have declined by an average of 10% across all the banks, with the bottom 5th percentile experiencing a decline of 20%.
10 percent of banks have larger unrecognized losses than those at SVB. Nor was SVB the worst capitalized bank, with 10 percent of banks having lower capitalization than SVB.

Even if only half of uninsured depositors decide to withdraw, almost 190 banks are at a potential risk of impairment to insured depositors, with potentially $300 billion of insured deposits at risk.

Prior to the recent asset declines all US banks had positive bank capitalization. However, after the recent decrease in value of bank assets, 2,315 banks accounting for $11 trillion of aggregate assets have negative capitalization. This calculation underscores that recent declines in bank asset values significantly decreased bank capitalization and bank insolvency risk.

Monetary Tightening and U.S. Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs?

We develop an empirical methodology and conceptual framework to analyze the effect of rising interest rates on the value of U.S. bank assets and bank stability.

papers.ssrn.com

 

[Don't Toews Me]

The mere fact that regulators designated two midsized banks as systemic implies they think the system is fragile. My instinct tells me that most regional and community banks are basically sound. The main thing we have to fear is fear itself cascading into bank runs that will force otherwise healthy banks to collapse.

Good article. Thanks for posting.

I highlighted the bolded in light of all the predictions the Fed will continue raising interest rates at the next meeting. Can't see how Powell can defend doing so while simultaneously de facto declaring a systemic threat largely caused by the exact same tightening policy.

If they do raise rates I think they say there are two problems with two answers. Higher rates to combat inflation and the BTFP for bank liquidity issues. They can keep raising rates while the BTFP firebreaks any financial stability issues.

https://twitter.com/jeannasmialek/status/1635636885425995781?cxt=HHwWioC-lZrF-bItAAAA

https://twitter.com/jasonfurman/status/1635628309391507457

The CME FedWatch Tool seems to indicate a current belief that they will hike 25 bp.

 

[Stoneworker]

I have no idea what the Fed will do but find the whole conversation fascinating. Here is a snippet from today's WSJ:

The last time the Fed was dealing with burgeoning financial problems and too-high inflation was in the late 1980s, when the Savings & Loan crisis was getting under way. Transcripts from the central banks’ meetings show that policy makers were worrying about the thrift industry as early as 1988—Fed governor Martha Seger called it “a disaster area, and something we have to pay attention to” in May of that year. But even as the problems intensified, the Fed kept raising rates through May of 1989.

In retrospect, perhaps the Fed should have eased off sooner—in addition to helping provoke the 1990 recession, the pall cast by the S&L crisis was part of why the early stages of the ensuing recovery were tepid.

Even so, today’s Fed isn’t about to stop worrying about inflation on account of Silicon Valley and Signature’s collapse. Policy makers might hit the pause button next week, but if the economic data stay strong, they will be itching to hit play, again.

 

[ShamrockPride]

@Runkle that was a perfect post up above that anyone can understand. Thank you.

 

[Dinsy Ejotuz]

Hedge Fund: K = Thousands MM = Millions

Like hedge funds worry about thousands.

 

[Redwes25]

I'm not knowledgeable at all about this, but from what I've read the SVB investments weren't bad. Those will still pay out eventually, correct?

Here's a super-simplified version: The bank took in a bunch of money from people depositing. They needed to put that money somewhere safe that earned some kind of return, and there's nothing better, safer, or more reliable that US government bonds. Unfortunately, at the time, bonds paid like 1.5% interest... for every $100 they bought, they'd get back $101.50... but over time, yes, those will still pay out at a profit. But, when you buy bonds, you lock up the money for like 20 years.

The way around that timeframe, of course, is the bond market, where if you need to get out of a bond before the 20 years are up, you can sell it to someone else. So when the people who deposited suddenly wanted their money back all at once, the bank would go to the bond market and try to sell the bonds.

But, now that interest rates have gone up recently, you can buy bonds direct from the government that pay, like, 4%. So all the buyers out there would look at SVB's bonds and ask "why would I buy a 1.5% bond from you when I can buy a 4% bond from Uncle Sam?" The only thing SVB could do, then was to sell their bond at a loss. That is, they'd sell their $100 bond which paid out $101.50 to a buyer for only $97. That way, the buyer was getting a favorable return... for him, he's paying $97 for $101.50, and getting about 4% return on his money, same as he would get from Uncle Sam. That discount makes it possible for SVB to sell at all. But for SVB, that means they're losing 3% of their depositors money. Coming up 3% short on their customers is what makes a bank fail... no one is going to stay with them.

Yeah, but selling those bonds are a much larger loss. For example, assuming a 4 year life to maturity a 25 bps change in interest rate (i.e. rate changing from 1.50% to 1.75%) equals 100 bps of discount (1.00% of price) so a 3% move in interest rate is a 12% drop in price for a 4 year bond. Longer dated bonds would be even worse.

The thing that suprises me the most about the whole thing is where were the hedges. You are buying bonds at historically low interest rate unhedged against an increase in rate? That seems like a giant error in risk management and be shocking that regulators would miss that in stress tests.

ETA - this is a very simplified example.

 

[Dezbelief]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

I recently found out why.... as it always confused me why MM was million and then found out the reason and was like duh..... Roman numerals.

MM in Roman numerals is 2,000 in Arabic numerals.

 

[Dezbelief]

shocking that regulators would miss that in stress tests.

I believe I read somewhere SVB didn't have to undergo stress tests.

 

[The Z Machine]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

Hedge Fund: K = Thousands MM = Millions

I go K, mm, and B because the single m will confuse too many folks who lack a trading/markets background. People that use $mio though....deserve to be ridiculed.

Good posting.
I use $ted.danson

 

[LawFitz]

assuming a 4 year life to maturity a 25 bps change in interest rate equals 100 bps of discount so a 3% move in interest rate is a 12% drop in price for a 4 year bond. Longer dated bonds would be even worse.

Yep, not only was the duration of the bonds complicating (longer maturity equals greater sensitivity to interest rate moves), but so too in this modern example was the convexity (the closer the yield to zero, the more powerful small moves in market rates in relation to price). It was a double whammy of poorly understood and poorly managed/hedged risk exposure.

The real question is how many other banking industry risk managers didn't have this same (industry basic) understanding of duration and convexity?

 

[Desert_Power]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

I recently found out why.... as it always confused me why MM was million and then found out the reason and was like duh..... Roman numerals.

MM in Roman numerals is 2,000 in Arabic numerals.

Sounds like sharia math

 

[The General]

assuming a 4 year life to maturity a 25 bps change in interest rate equals 100 bps of discount so a 3% move in interest rate is a 12% drop in price for a 4 year bond. Longer dated bonds would be even worse.

Yep, not only was the duration of the bonds complicating (longer maturity equals greater sensitivity to interest rate moves), but so too in this modern example was the convexity (the closer the yield to zero, the more powerful small moves in market rates in relation to price). It was a double whammy of poorly understood and poorly managed/hedged risk exposure.

The real question is how many other banking industry risk managers didn't have this same (industry basic) understanding of duration and convexity?

This is what I am wondering. In what I am reading (this is never obvious until after it happens and then everyone is suddenly an expert ) it does seem SVB was in fairly unique situation which is good news.

 

[Chadstroma]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

I recently found out why.... as it always confused me why MM was million and then found out the reason and was like duh..... Roman numerals.

MM in Roman numerals is 2,000 in Arabic numerals.

1,000 X 1,000 = MM

 

[Stoneworker]

For fans of fighting climate change, the failure of SVB is not good. It was the premier bank for cleantech startups and will take a long while to replace.

- SVB formed a dedicated cleantech practice approximately 15 years ago, well ahead of most of its financial peers.

- In total SVB boasts over 1,550 prominent clients in the climate technology and sustainability sector bank there, including solar, hydrogen and battery storage.

- A little over a year ago SVB had even committed $5 billion in loans and investments specifically towards sustainability efforts. For comparison, larger public banks had committed amounts in the hundreds of millions.

- Community solar projects appear to be especially hard hit. Silicon Valley Bank said that it led or participated in 62 percent of financing deals for community solar projects, which are smaller-scale solar projects that often serve lower-income residential areas.

- Climate tech companies may have problems making major investments in demonstration projects, pilot lines and research and development,” Mr. Sivaram said. “All of those investments are necessary to scale as quickly as possible and take advantage of the I.R.A.” “Projects will likely be delayed significantly as developers go to find new sources of capital,” he said. -NYT

- In the short term, the fall of Silicon Valley Bank is a sudden and tremendous blow to the momentum of the sustainability investment movement. -EnergyTech Magazine

 

[Desert_Power]

But for SVB, that means they're losing 3% of their depositors money. Coming up 3% short on their customers is what makes a bank fail... no one is going to stay with them.

No, it means they are depleting capital. There is no indication that SVB lacked the assets to cover its deposits.

 

[Poke_4_Life]

Do banks have to list where they have all their money invested? Like if they have way too much in these long term bonds they purchased years ago.

Yes and no. Banks all file public 'call reports', called the Uniform Bank Performance Report, but they may not be detailed enough to delineate what you want.

 

[Dezbelief]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

I recently found out why.... as it always confused me why MM was million and then found out the reason and was like duh..... Roman numerals.

MM in Roman numerals is 2,000 in Arabic numerals.

1,000 X 1,000 = MM

MM = 1,000 + 1,000

 

[Sand]

Do banks have to list where they have all their money invested? Like if they have way too much in these long term bonds they purchased years ago.

In short, yes. They also categorize them by available to sell and hold to maturity for their capital ratios, etc.

 

[LawFitz]

Seeing more and more calls for backstopping all depositor losses for all banks to avoid runs. Off we go again with privatized gains and socialized losses. And LOFL at the taxpayer not paying for these losses. Whether through the front door of income taxation or the backdoor of higher bank fees and/or broader inflation, the people will pay for this ********. History rhyming once again.

 

[The General]

Do banks have to list where they have all their money invested? Like if they have way too much in these long term bonds they purchased years ago.

Yes and no. Banks all file public 'call reports', called the Uniform Bank Performance Report, but they may not be detailed enough to delineate what you want.

Do banks have to list where they have all their money invested? Like if they have way too much in these long term bonds they purchased years ago.

In short, yes. They also categorize them by available to sell and hold to maturity for their capital ratios, etc.

With this in mind wouldn’t there be good analysis out there for banks that were in the same predicament SVB found themselves in. I mean the situations would still be significantly different but knowing if a bank were too heavily invested in these older bonds would seem like a problem.

 

[The General]

Seeing more and more calls for backstopping all depositor losses for all banks to avoid runs. Off we go again with privatized gains and socialized losses. And LOFL at the taxpayer not paying for these losses. Whether through the front door of income taxation or the backdoor of higher bank fees and/or broader inflation, the people will pay for this ********. History rhyming once again.

No one in charge is ever going to take the chance of one of these things unwinding and causing some huge meltdown.

Just got to hope that measures are put in place to help alleviate or in a perfect world avoid…until the next series of event or exploit occurs.

 

[urbanhack]

Seeing more and more calls for backstopping all depositor losses for all banks to avoid runs. Off we go again with privatized gains and socialized losses. And LOFL at the taxpayer not paying for these losses. Whether through the front door of income taxation or the backdoor of higher bank fees and/or broader inflation, the people will pay for this ********. History rhyming once again.

No one in charge is ever going to take the chance of one of these things unwinding and causing some huge meltdown.

Just got to hope that measures are put in place to help alleviate or in a perfect world avoid…until the next series of event or exploit occurs.

Maybe someone can go to jail at some point...if warranted.

 

[The General]

Seeing more and more calls for backstopping all depositor losses for all banks to avoid runs. Off we go again with privatized gains and socialized losses. And LOFL at the taxpayer not paying for these losses. Whether through the front door of income taxation or the backdoor of higher bank fees and/or broader inflation, the people will pay for this ********. History rhyming once again.

No one in charge is ever going to take the chance of one of these things unwinding and causing some huge meltdown.

Just got to hope that measures are put in place to help alleviate or in a perfect world avoid…until the next series of event or exploit occurs.

Maybe someone can go to jail at some point...if warranted.

Well, we know that will never happen.

 

[Alex P Keaton]

Moody's cuts outlook on U.S. banking system to negative, citing 'rapidly deteriorating operating environment'

The firm, part of the big three rating services, said it was making the move in light of key bank failures.

www.cnbc.com

In a harsh blow to an already-reeling sector, Moody’s Investors Service on Monday cut its view on the entire banking system to negative from stable.

The firm, part of the big three rating services, said it was making the move in light of three key failures that prompted regulators to step in Sunday with a dramatic rescue plan for depositors and other institutions impacted by the crisis.


“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,” Moody’s said in a report.

Gotta love how forward looking Moody’s is. What a bunch of clowns.

 

[Chadstroma]

don't know if you made a typo there but It's $250k max not $250m.

In the financial world $250m = $250k and $250mm = 250 million

Funny -- I am in real estate/finance and we use a hybrid internally. $250k - $250,000 but we use the MM for Million.

I recently found out why.... as it always confused me why MM was million and then found out the reason and was like duh..... Roman numerals.

MM in Roman numerals is 2,000 in Arabic numerals.

1,000 X 1,000 = MM

MM = 1,000 + 1,000

ok.... argue it with those who came up with it. I am just saying why it is used.

 

[Alex P Keaton]

Seeing more and more calls for backstopping all depositor losses for all banks to avoid runs. Off we go again with privatized gains and socialized losses. And LOFL at the taxpayer not paying for these losses. Whether through the front door of income taxation or the backdoor of higher bank fees and/or broader inflation, the people will pay for this ********. History rhyming once again.

The solution to failed regulation…….More regulation and intervention!! It’s amazing right?

 

[Stoneworker]

With this in mind wouldn’t there be good analysis out there for banks that were in the same predicament SVB found themselves in. I mean the situations would still be significantly different but knowing if a bank were too heavily invested in these older bonds would seem like a problem.

Post 270. It's all there.

 

[The General]

With this in mind wouldn’t there be good analysis out there for banks that were in the same predicament SVB found themselves in. I mean the situations would still be significantly different but knowing if a bank were too heavily invested in these older bonds would seem like a problem.

Post 270. It's all there.

Quite the pickle we have placed ourselves in.

 

[Todem]

I seriously (barring any black swans) don’t see rates being cut till late 2024 at the earliest. That is of course the Fed does not cave to political pressure like they did in late 2018.

Not great for us that are looking at a new mortgage in the next 2 years. I don't want to give up my 2.75% for a 6.5+%

Honestly I would sit tight if you have that choice.....by late 2025 it will be in the low 4’s IMO.

If we see 2.75% again in our lifetimes.....that means we went through another great recession or some major black swan.

 

[Chemical X]

Seeing more and more calls for backstopping all depositor losses for all banks to avoid runs. Off we go again with privatized gains and socialized losses. And LOFL at the taxpayer not paying for these losses. Whether through the front door of income taxation or the backdoor of higher bank fees and/or broader inflation, the people will pay for this ********. History rhyming once again.

The solution to failed regulation…….More regulation and intervention!! It’s amazing right?

how do you both feel about the $800 billion the government donated to businesses/individuals? talk about privatized gains and socialized losses. i’m not knocking either one of you, but if we are calling for less government, we can’t be selectively outraged.

with all the guardrails i need to jump through on a daily basis, you’d think we actually would have something in place that works in the real world.

 

[Stoneworker]

Quite the pickle we have placed ourselves in.

Only when the tide goes out do you discover who's been swimming naked. -Warren Buffet