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those people fled because they were told to by the financial press this really feels like a setup to let a big bank buy a little bank for nothing if we are re
by 0zemp2c 3y ago
those people fled because they were told to by the financial press
this really feels like a setup to let a big bank buy a little bank for nothing
if we are really talking about people fleeing banks in "trouble", they would all close tomorrow...and don't tell me about stress-tests, those don't incorporate things like a broad collapse in commercial RE (which ALL the banks will be hit by)
- JumpCrisscross 3y ago> those people fled because they were told to by the financial press …reporting First Republic’s balance sheet losses and falling stock and bond prices. > feels like a setup to let a big bank buy a little bank for nothing It’s not. That JPMorgan wound up buying it means literally nobody else submitted a valid bid, because the OCC and FDIC would have much preferred to not waive rules in making this happen. (Remember, too, the $30bn the big guys deposited with First Republic in March [1].) [1] https://www.cnbc.com/2023/03/16/group-of-financial-institutions-in-talks-to-deposit-about-20-billion-in-first-republic-sources-say.html https://www.cnbc.com/2023/03/16/group-of-financial-instituti...
- xmcqdpt2 3y agoReal estate (commercial and otherwise) is included in the stress tests, https://www.federalreserve.gov/publications/2023-Stress-Test-Scenarios.htm https://www.federalreserve.gov/publications/2023-Stress-Test... I think financial regulators are a bit too soft-touched, but they aren't so incompetent that they would neglect real estate, of all things, in stress test scenarios in this post GFC world.