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Three out of five largest bank failures in the United States happened in the past two months (SVB, Signature, and First Republic): https://en.wikipedia.org/wik

Three out of five largest bank failures in the United States happened in the past two months (SVB, Signature, and First Republic): https://en.wikipedia.org/wiki/List_of_largest_bank_failures_in_the_United_States https://en.wikipedia.org/wiki/List_of_largest_bank_failures_...

JumpCrisscross 3y ago
If you’re looking for a list, the eleven regional lenders Moody’s downgraded last week are good place start [1]. Given we have de facto uncapped the FDIC’s insurance limit, I’m not sure it’s a good place to stew unless out of personal interest. [1] https://www.wsj.com/articles/moodys-downgrades-11-regional-banks-including-zions-u-s-bank-western-alliance-174e4d7f https://www.wsj.com/articles/moodys-downgrades-11-regional-b...
- Dalewyn 3y ago
  >Given we have de facto uncapped the FDIC’s insurance limit, It was never capped in any hard manner, remember the fine print is "up to at least" $250,000.00. The limit can be as high as the FDIC's feeling that particular day, the only thing set in stone is the floor of $250,000.00.
  - JumpCrisscross 3y ago
    > limit can be as high as the FDIC's feeling that particular day Technically, the FDIC has to find the failure to be systemically important. Legally, nobody defined what that process should be, so you are in practice correct.
  - zamnos 3y ago
    In this case > All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all of their deposits.
    - pjc50 3y ago
      Indeed - the government isn't taking responsibility, they've leaned on the private sector to sort this out among themselves. (Matt Levine et al have argued that the SV VC community should have taken over more, or indeed any, of the rescue role, since they were responsible for overweighting SVB and then bankrunning it. But that hasn't happened)
      - JumpCrisscross 3y ago
        > the government isn't taking responsibility Ish. The loss-sharing transaction does involve the FDIC taking risk [1]. They claim they will settle up actual losses with special assessments on their members. And there may be no losses at all. But there is definitely risk being assumed by the FDIC, an entity backed by the full faith and credit of the United States. It also looks like the FDIC is providing JPMorgan with a $50bn term loan [2]. (Shout out to snake_doc [3].) [1] https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/lossshare/ https://www.fdic.gov/resources/resolutions/bank-failures/fai... [2] https://www.jpmorganchase.com/ir/news/2023/jpmc-acquires-substantial-majority-of-assets-and-assumes-certain-liabilities-of-first-republic-bank https://www.jpmorganchase.com/ir/news/2023/jpmc-acquires-sub... [3] https://news.ycombinator.com/item?id=35770684 https://news.ycombinator.com/item?id=35770684
        aero-glide2 3y ago
        "The FDIC is not supported by public funds; member banks' insurance dues are its primary source of funding."
        ceejayoz 3y ago
        The FDIC is not normally supported by public funds. If it ran out of money, it's nearly certain the government would step in to cover the shortfall.
  - 0zemp2c 3y ago
    > The limit can be as high as the FDIC's feeling that particular day, the only thing set in stone is the floor of $250,000.00. as long as the payout doesn't exceed the FDIC's funds its a $100 billion fund insuring $14 trillion in deposits...
    - JumpCrisscross 3y ago
      > its a $100 billion fund insuring $14 trillion in deposits Backed by the full faith and credit of the United States. (As well as what looks like the Fed [1].) [1] https://bpi.com/the-mysterious-footnote-7-to-whom-and-on-what-terms-is-the-fed-lending-173-billion/ https://bpi.com/the-mysterious-footnote-7-to-whom-and-on-wha...
      - T-A 3y ago
        FWIW :/ https://www.usdebtclock.org/ https://www.usdebtclock.org/
        ceejayoz 3y ago
        It's historically worth quite a bit.
        T-A 3y ago
        True, but https://fred.stlouisfed.org/series/GFDEGDQ188S https://fred.stlouisfed.org/series/GFDEGDQ188S
        Kye 3y ago
        See that slide down after most people got checks and businesses got PPP loans they didn't have to pay back when the pandemic was at its worst? That's investment paying off. And that's with supply issues that continue to this day. Watch that space for when supply catches up and we start figuring out better pandemic management after the next killer wave. The road ahead is bumpy, but I see wise investments paying off as long as some idiot doesn't get into power and start cutting taxes for people who don't need them again. The people who keep loaning money to the government at least don't seem worried because they keep doing it.
- DJBunnies 3y ago
  Anyone have an alt source for this
  - not_your_vase 3y ago
    https://archive.is/NLiV0 https://archive.is/NLiV0 There is a search feature on archive.is, which so far hasn't failed me when I looked for links on these somewhat popular paywalled sites.
    - DJBunnies 3y ago
      Thanks, I could only remember outline.
chris123 3y ago
[flagged]
- Etrnl_President 3y ago
  Been that way since the Whiskey "Rebellion".
expertentipp 3y ago
...and it's all surprisingly orderly and moderate, exactly like public statements of Lavrov.
pranshum 3y ago
I wrote a couple of visual essays on the topic. It's not entirely fair to compare bank failure sizes across times, even inflation adjusted [1]. The rate of asset price growth since 2008 far outstrips inflation. IMO the frequency of bank failures is more worrying. They tend to come in waves [2]. 1: On the size of bank failures: https://yarn.pranshum.com/banks https://yarn.pranshum.com/banks 2. On the frequency of bank failrres: https://yarn.pranshum.com/banks2 https://yarn.pranshum.com/banks2
- ufo_yo 3y ago
  Love it! Thanks for making this.
- everybodyknows 3y ago
  From https://yarn.pranshum.com/banks https://yarn.pranshum.com/banks > Most banks hold more assets than deposits. So in theory, depositors should always be made whole. No such theory is established; it's the central bank's money printing ability that can always make depositors whole. In the US, the Federal Reserve implicitly backs the Federal Deposit Insurance Corporation.
  - wrvajklj4 3y ago
    I get that the money goes brrrr attitude, but it's kind of silly. The FDIC holds an adequate deposit insurance fund, financed by banks who must buy FDIC insurance. It's over $100 billion dollars, which is enough to weather some major failures. With large failures, the FDIC may issue special assessments to maintain the fund at a safe level (they did this with SVB).
eru 3y ago
You should probably adjust that list not for inflation, but perhaps for GDP?

JumpCrisscross 3y ago

If you’re looking for a list, the eleven regional lenders Moody’s downgraded last week are good place start [1]. Given we have de facto uncapped the FDIC’s insurance limit, I’m not sure it’s a good place to stew unless out of personal interest. [1] https://www.wsj.com/articles/moodys-downgrades-11-regional-banks-including-zions-u-s-bank-western-alliance-174e4d7f https://www.wsj.com/articles/moodys-downgrades-11-regional-b...

Dalewyn 3y ago
>Given we have de facto uncapped the FDIC’s insurance limit, It was never capped in any hard manner, remember the fine print is "up to at least" $250,000.00. The limit can be as high as the FDIC's feeling that particular day, the only thing set in stone is the floor of $250,000.00.
- JumpCrisscross 3y ago
  > limit can be as high as the FDIC's feeling that particular day Technically, the FDIC has to find the failure to be systemically important. Legally, nobody defined what that process should be, so you are in practice correct.
- zamnos 3y ago
  In this case > All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all of their deposits.
  - pjc50 3y ago
    Indeed - the government isn't taking responsibility, they've leaned on the private sector to sort this out among themselves. (Matt Levine et al have argued that the SV VC community should have taken over more, or indeed any, of the rescue role, since they were responsible for overweighting SVB and then bankrunning it. But that hasn't happened)
    - JumpCrisscross 3y ago
      > the government isn't taking responsibility Ish. The loss-sharing transaction does involve the FDIC taking risk [1]. They claim they will settle up actual losses with special assessments on their members. And there may be no losses at all. But there is definitely risk being assumed by the FDIC, an entity backed by the full faith and credit of the United States. It also looks like the FDIC is providing JPMorgan with a $50bn term loan [2]. (Shout out to snake_doc [3].) [1] https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/lossshare/ https://www.fdic.gov/resources/resolutions/bank-failures/fai... [2] https://www.jpmorganchase.com/ir/news/2023/jpmc-acquires-substantial-majority-of-assets-and-assumes-certain-liabilities-of-first-republic-bank https://www.jpmorganchase.com/ir/news/2023/jpmc-acquires-sub... [3] https://news.ycombinator.com/item?id=35770684 https://news.ycombinator.com/item?id=35770684
      - aero-glide2 3y ago
        "The FDIC is not supported by public funds; member banks' insurance dues are its primary source of funding."
        ceejayoz 3y ago
        The FDIC is not normally supported by public funds. If it ran out of money, it's nearly certain the government would step in to cover the shortfall.
- 0zemp2c 3y ago
  > The limit can be as high as the FDIC's feeling that particular day, the only thing set in stone is the floor of $250,000.00. as long as the payout doesn't exceed the FDIC's funds its a $100 billion fund insuring $14 trillion in deposits...
  - JumpCrisscross 3y ago
    > its a $100 billion fund insuring $14 trillion in deposits Backed by the full faith and credit of the United States. (As well as what looks like the Fed [1].) [1] https://bpi.com/the-mysterious-footnote-7-to-whom-and-on-what-terms-is-the-fed-lending-173-billion/ https://bpi.com/the-mysterious-footnote-7-to-whom-and-on-wha...
    - T-A 3y ago
      FWIW :/ https://www.usdebtclock.org/ https://www.usdebtclock.org/
      - ceejayoz 3y ago
        It's historically worth quite a bit.
        T-A 3y ago
        True, but https://fred.stlouisfed.org/series/GFDEGDQ188S https://fred.stlouisfed.org/series/GFDEGDQ188S
        Kye 3y ago
        See that slide down after most people got checks and businesses got PPP loans they didn't have to pay back when the pandemic was at its worst? That's investment paying off. And that's with supply issues that continue to this day. Watch that space for when supply catches up and we start figuring out better pandemic management after the next killer wave. The road ahead is bumpy, but I see wise investments paying off as long as some idiot doesn't get into power and start cutting taxes for people who don't need them again. The people who keep loaning money to the government at least don't seem worried because they keep doing it.
DJBunnies 3y ago
Anyone have an alt source for this
- not_your_vase 3y ago
  https://archive.is/NLiV0 https://archive.is/NLiV0 There is a search feature on archive.is, which so far hasn't failed me when I looked for links on these somewhat popular paywalled sites.
  - DJBunnies 3y ago
    Thanks, I could only remember outline.

chris123 3y ago

[flagged]

Etrnl_President 3y ago
Been that way since the Whiskey "Rebellion".

expertentipp 3y ago

...and it's all surprisingly orderly and moderate, exactly like public statements of Lavrov.

pranshum 3y ago

I wrote a couple of visual essays on the topic. It's not entirely fair to compare bank failure sizes across times, even inflation adjusted [1]. The rate of asset price growth since 2008 far outstrips inflation. IMO the frequency of bank failures is more worrying. They tend to come in waves [2]. 1: On the size of bank failures: https://yarn.pranshum.com/banks https://yarn.pranshum.com/banks 2. On the frequency of bank failrres: https://yarn.pranshum.com/banks2 https://yarn.pranshum.com/banks2

ufo_yo 3y ago
Love it! Thanks for making this.
everybodyknows 3y ago
From https://yarn.pranshum.com/banks https://yarn.pranshum.com/banks > Most banks hold more assets than deposits. So in theory, depositors should always be made whole. No such theory is established; it's the central bank's money printing ability that can always make depositors whole. In the US, the Federal Reserve implicitly backs the Federal Deposit Insurance Corporation.
- wrvajklj4 3y ago
  I get that the money goes brrrr attitude, but it's kind of silly. The FDIC holds an adequate deposit insurance fund, financed by banks who must buy FDIC insurance. It's over $100 billion dollars, which is enough to weather some major failures. With large failures, the FDIC may issue special assessments to maintain the fund at a safe level (they did this with SVB).

eru 3y ago

You should probably adjust that list not for inflation, but perhaps for GDP?