Wall St Journal reports about 200 other US Banks could repeat fate of Silicon Valley Bank. $300B at risk!

Let's Bail Them All Out!!!

Monetary Tightening and U.S. Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs?

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We analyze U.S. banks’ asset exposure to a recent rise in the interest rates with implications for financial stability. The U.S. banking system’s market value of assets is $2 trillion lower than suggested by their book value of assets accounting for loan portfolios held to maturity. Marked-to-market bank assets have declined by an average of 10% across all the banks, with the bottom 5th percentile experiencing a decline of 20%. We illustrate that uninsured leverage (i.e., Uninsured Debt/Assets) is the key to understanding whether these losses would lead to some banks in the U.S. becoming insolvent-- unlike insured depositors, uninsured depositors stand to lose a part of their deposits if the bank fails, potentially giving them incentives to run. A case study of the recently failed Silicon Valley Bank (SVB) is illustrative. 10 percent of banks have larger unrecognized losses than those at SVB. Nor was SVB the worst capitalized bank, with 10 percent of banks having lower capitalization than SVB. On the other hand, SVB had a disproportional share of uninsured funding: only 1 percent of banks had higher uninsured leverage. Combined, losses and uninsured leverage provide incentives for an SVB uninsured depositor run. We compute similar incentives for the sample of all U.S. banks. Even if only half of uninsured depositors decide to withdraw, almost 190 banks are at a potential risk of impairment to insured depositors, with potentially $300 billion of insured deposits at risk. If uninsured deposit withdrawals cause even small fire sales, substantially more banks are at risk. Overall, these calculations suggest that recent declines in bank asset values very significantly increased the fragility of the US banking system to uninsured depositor runs.

Steve Bannon: "They Will Throw Americans To The Wolves"

[link to rumble.com (secure)]

Money for nothing and your chicks for free.

if that many go down it will be domino time with all the rest falling in turn

This needs a Pin… nationalization of financial sector is looming ever closer

we're going to need to import illegals to do all the work.

Thank you doorbert.

Its so big i think even central bankers don't fully understand . Especially when they tinker with what amounts to collapse in various ways and sectors. IMO

When the shtf, you’ll be returning that in-store microwave oven. Make sure to keep that receipt as proof of the fraud.

Add this.

Thread: JPM is GOING DOWN By Next Friday

Beyond their capacity to fix IMO

55 trillion plus

Thread: BlackRock assembles rival Credit Suisse takeover bid

I am just sooooo glad I don't live in North Korea!

Cause I gots FREEDOM!

Creating a Safe Bank

How many times do we have to go down the duration mismatch road with fractional reserve lending and nearly $9 trillion of Fed QE to prove the current banking doesn't work?

Once again, systemic risk morphed into economic stress, bank failures, and then a bailout of the banking system, not just Silicon Valley Bank.

If you think only depositors got bailed out, you are mistaken. The Fed put a system backstop on $600 billion in bond losses. And although bank executives will lose their jobs, they cashed out tens of millions of dollars in stock options along the way.

Specifically, we need a bank that puts 100% of its assets in overnight treasuries and makes zero loans. The bank would not need any loan officers or many operational personnel for obvious reasons. There would be no need for FDIC guarantees because there would be zero risk of a run and zero risk of losses. We can still keep the FDIC term in place, but realistically it would not be needed. In essence, we would create a 100% reserve bank.

[link to www.zerohedge.com (secure)]

Share 'n Stoned

Come on FED! Hike that interest rate .25% !!

I want to see more carnage!

I bet if a bank like Chase or BoA go insolvent that the FDIC won’t give anyobe anything.. watch.

Feb 2022
March 2023

https://imgur.com/a/2s2oUOL

They are shouting fire in a crowded theater to instigate silent bank runs. Lots of money is flowing out of these mid-tier banks.

These f****** modern monetary theorists just want their quantitative easing zero interest rate gravy train back to pump up their asset prices and be Financial parasites that's what this is all about.

If this financial system can't remain stable with 4% interest rates and no quantitative easing then let the f****** system crash and burn. These damn baby boomers have it coming.

Much thanks for pin

Lol. Good one.

$300 Billion used to sound like big bucks
Until you consider Biden pissed away over $200 Billion to Ukraine in the past 13 months

How many Russian banks are failing?