Some time today lol.

 

I'll get done writing about it :-).

Shares in US regional banks close sharply lower over fears of deposit flight

"First Republic leads sell-off despite Biden pledge to do ‘whatever is needed’ to prevent SVB contagion"

Looks like Robert Kiyosaki is gonna be right:

"So they’re going to print more and more and more of this,” 

the expert said while holding up a dollar bill, 

“trying to keep this thing from sinking'

"Investors dumped the stocks even after the Federal Reserve and Treasury boosted lenders’ access to quick cash following the government takeovers of Silicon Valley Bank and Signature Bank.'

'The sell-off was a troubling sign that investors believe regulators had not done enough to stem deposit outflows following SVB’s collapse, and Fed chair Jay Powell weighed in after the market close to announce “a thorough, transparent, and swift review” of the failure."

"Biden had attempted to reassure Americans their deposits were safe in pre-markets remarks, when he made clear that the blanket guarantee to SVB depositors and new cheap loans to other struggling lenders offered at the weekend would not be the end of government efforts.

“We will not stop at this,” Biden said. “We’ll do whatever is needed on top of all [this].”

Again:

Robert Kiyosaki:

"So they’re going to print more and more and more of this,” 

the expert said while holding up a dollar bill, 

“trying to keep this thing from sinking'

“There’s no question over the value of balance sheets here as there was in 2008, but I don’t know at this point what it takes to get people to look at the situation more carefully,” said Jesse Rosenthal, head of US financials at CreditSights.

( I really dont think it matters, people are just assuming we will go back to the easy $ days and we just can't.)

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https://www.ft.com/content/7b3214e9-aa2e-4d3a-8724-fe71bb8dd006

"Monday’s sell-off was driven in part by fears that other regional banks could have a run by depositors similar to the one that brought down SVB, especially by clients with balances above the $250,000 covered by federal insurance."

“The reality is that all kinds of market participants are nervous,” said Mayra Rodriguez Valladares, a regulatory consultant. “Everyone is wondering, ‘What if I have assets at Bank A or B or C?’”

"As stress rippled through the financial system, a lender to many US regional banks raised tens of billions of dollars to safeguard the sector."

"The Federal Home Loan Banks system sold $88.7bn of short-term notes on Monday afternoon, money that lenders could tap for funding in the coming days, according to people briefed on the transaction."

(Well at least were not creating $ out of thin air just yet...)

"The sheer size of the offering gives the system, created in the midst of the Great Depression, the ability to lend a mammoth sum to banks attempting to fortify their balance sheets as they struggle with deposit flight."

(If they didn't anticipate it being an issue further down the road? Why was the $ in the offering so large?)

The FHLB — seen as the lender of second-last resort before a bank might tap emergency funding from the Fed — was already a large provider of capital to Silicon Valley Bank. The Federal Home Loan Bank of San Francisco had advanced $15bn to SVB, as well as a further $14bn to First Republic at the end of last year, a filing with US securities regulators showed."

"First Republic on Sunday shored up its finances with funding from the Fed and JPMorgan Chase as fears of contagion spread among regional lenders. The bank said the funding gave it $70bn of unused liquidity, excluding money available from the new Bank Term Funding Program announced on Sunday."

'If required, the Federal Deposit Insurance Corporation would be prepared to take over the bank, wiping out shareholders and bondholders to protect depositors as it did with SVB and Signature, said a person with first-hand knowledge of the plan being developed by US officials."