Revelations 18:9-11 “The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning, 10 standing at a distance for fear of her torment, saying, ‘Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.’ 11 “And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore
Important Takeaways:
- First Republic Bank’s shares fall 50% after ‘troubling’ earnings call where company execs refuse to answer questions after customers withdrew $100 billion following the collapse of Silicon Valley Bank
- First Republic Bank’s shares plunged 50 percent after a ‘troubling’ earnings call where company executives refused to answer questions.
- The stock dropped Tuesday after it emerged that customers withdrew more than $100 billion during last month’s crisis, with fears swirling that it could be the third bank to fail in quick succession after the collapse of Silicon Valley Bank and Signature Bank.
- First Republic held nearly $180 billion at the end of last year.
- The bank’s stock closed down 49 percent at $8.10, a fraction of the price it was a year ago when it traded for roughly $170 a share.
- A statement from First Republic issued late Monday stated the company was only able to stanch the bleeding after a group of large banks stepped in to save it by depositing $30 billion in uninsured deposits, which it received in March.
- But investors remained deeply skeptical about what path forward exists
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Revelations 18:9-11 “The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning, 10 standing at a distance for fear of her torment, saying, ‘Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.’ 11 “And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore
Important Takeaways:
- ‘Blanket insurance’ of bank deposits is not being discussed, Yellen tells senators
- Federal bank regulators are not considering any plans to insure all U.S. bank deposits without congressional approval, Treasury Secretary Janet Yellen told members of a Senate Appropriations subcommittee on Wednesday.
- Several banking groups and consumer advocates have called for some kind of a universal deposit guarantee after the government refunded most of the uninsured deposits at two banks that collapsed earlier this month, California-based Silicon Valley Bank and New York-based Signature Bank
- “I have not considered or discussed anything having to do with blanket insurance or guarantees of all deposits.”
- In Washington, the emergency deposit guarantees made for SVB and Signature have set off a fierce debate over whether big banks that took excessive risks got a special bailout, while smaller institutions are being forced to confront a rush of withdrawals… without any special help.
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Revelations 18:9-11 “The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning, 10 standing at a distance for fear of her torment, saying, ‘Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.’ 11 “And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore:
Important Takeaways:
- Barney Frank Sat on Board for Collapsed Signature Bank
- Former Rep. Barney Frank (D-MA), author of the 2010 Dodd-Frank bill, sat on the board for Signature Bank which collapsed in the wake of the Silicon Valley Bank (SVB) implosion.
- Silicon Valley Bank collapsed last Friday after depositors rushed to withdraw money in fear of its impending fall. It was the 16th largest bank in the country.
- Signature Bank became “popular among crypto companies” and provided “deposit services for its clients’ digital assets but did not make loans collateralized by them” according to Fox Business.
- In 2009, Breitbart News editor-at-large Joel Pollak confronted Frank, who was then the chairman of the House Financial Services Committee, asking if he shared any responsibility for the global financial meltdown of 2008.
- Speaking with Greta Van Susteren of Fox News after the exchange, Pollak said Frank had been putting too much blame on Republicans.
- “This guy is someone in a position of responsibility and authority. This guy is the one who’s making the regulations. He’s responsible, essentially, for recreating and redesigning our financial system, and he’s not taking any responsibility for what happened at all,” he added.
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Revelations 18:9-11 “The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning, 10 standing at a distance for fear of her torment, saying, ‘Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.’ 11 “And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore
Important Takeaways:
- Bank shares plummet up to 74% in pre-market trading despite Biden’s guarantee scheme for SVB (Silicon Valley Bank) and Signature Bank – amid fears of a banking rout mount when stock market opens at 9.30am
- First Republic Bank’s shares dropped as low as $21.50 from a high of $81.76 amid fears of a banking rout when Wall Street opens trading at 9.30am
- Biden spoke shortly before 9am in an attempt to shore up trust in the sector after the White House yesterday guaranteed it would make SVB customers ‘whole’ and that ‘no losses will be borne by the taxpayer.’
- PacWest Bancorp’s stock tumbled 41 percent
- Western Alliance Bancorp’s shares slid 33 percent
- Bank of America’s stock fell 4 percent.
- The dollar slid too as Wall Street heavyweights such as Goldman Sachs predicted the Fed would no longer lift interest rates next week, capping the biggest three-day rally for short-dated Treasuries since 1987.
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