Article

2023-03-12 Economy

Market Watch - 20 banks that are sitting on huge potential securities losses ‐ as was SVB

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by Besoeker 2023-03-12 07:32|| || Front Page|| [6 views ] Top

#1 only thing that could impact my bank is hog belly futures crashing....

Posted by Mercutio 2023-03-12 07:47|| 2023-03-12 07:47|| Front Page Top

#2 Signature Bank said in a statement that it was in a “strong, well-diversified financial position.”

Right, that's what they ALL say. Didn't that chump CEO of Silicon Valley Bank say "don't panic" just a days ago?

SBNY has commercial real estate problems along with running a similar money laundering scheme as Silvergate did using its Signet system.

Get the popcorn ready.

Posted by DooDahMan 2023-03-12 11:33|| 2023-03-12 11:33|| Front Page Top

#3 This could make the Fed Reserve hold rates steady or increase only 25 basis points.

Posted by lord garth 2023-03-12 12:02|| 2023-03-12 12:02|| Front Page Top

#4 It needs to be noted what this sudden bank crisis crowds off the front pages, social media and MSM broadcast news - the J6 and Covid revelations. Coincidence or misdirection?

Posted by NoMoreBS 2023-03-12 13:04|| 2023-03-12 13:04|| Front Page Top

#5 The point here is that if you hold these securities to maturity, there is NO LOSS AT ALL.

The geniuses in the accounting profession got the bright idea that you should "mark to market" these securities (and, yes, I know the pretzel contortions of FAS 115) so that you show "losses" that don't exist. It is just an accounting entry that will be reversed once rates start to go back down again.

having said that, if it were just that--a liquidity shortfall aggravated by accounting entries-- I would expect the Fed to step in and make loans of last resort while SVB and others sell off the illiquid assets and then repay the Fed loans.

The fact that the FDIC jumped in and seized the bank makes me think that something much more serious--that hasn't surfaced yet--is going on.

Posted by Tom 2023-03-12 13:42|| 2023-03-12 13:42|| Front Page Top

#6 Can’t get past paywall for the 20....

Posted by Xyz 2023-03-12 14:44|| 2023-03-12 14:44|| Front Page Top

#7 I think this article has it but it seems like speculation based ONLY on exposure, XYZ?

Posted by Frank G 2023-03-12 17:38|| 2023-03-12 17:38|| Front Page Top

#8 S&P, NASDEQ and DowJ futures all higher as of this post

Posted by lord garth 2023-03-12 19:15|| 2023-03-12 19:15|| Front Page Top

#9 Thanks FG.

Posted by Xyz 2023-03-12 22:21|| 2023-03-12 22:21|| Front Page Top

#10 @#2 - 'Signature Bank said in a statement that it was in a “strong, well-diversified financial position.” '

LOL, I figured that was b.s., but I didn't expect the feds to shut down Signature Bank (SBNY) today, on a Sunday.

After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.

Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.

Posted by DooDahMan 2023-03-12 23:09|| 2023-03-12 23:09|| Front Page Top

23:38 Skidmark
23:09 DooDahMan
23:06 DarthVader
22:43 trailing wife
22:21 Xyz
21:30 irish rage boy
21:19 Percy Flotle3938
21:18 Percy Flotle3938
20:16 Vortigern Omoluque9456
19:52 ed in texas
19:45 SteveS
19:15 lord garth
18:57 Anomalous Sources
18:47 Anomalous Sources
18:11 Super Hose
17:56 Deacon Blues
17:53 Deacon Blues
17:47 Deacon Blues
17:42 Deacon Blues
17:38 Frank G
17:22 Anomalous Sources
15:59 DarthVader
15:50 Super Hose
15:44 Super Hose