Investment Thread

[Jeffrey]

Rat in a drain ditch, caught on a limb, you know better but I know him.
Like I told you, what I said, (Uncle Sam will) steal your face right off your head!

- Robert Hunter

[PackMan97]

As predicted….

“The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress.”

Thanks, that answers my question is how they are doing this.

Making up stuff as they go along. I will sleep so much better tonight.

I guess "mark to market" is no longer a thing?

[Jeffrey]

A knife in the back and more of the same….

https://apple.news/AT33D8olxT5arzt54uHuHcg

“Silicon Valley Bank CEO Greg Becker was a director of the Federal Reserve Bank of San Francisco.”

“On the same day that Silicon Valley Bank (SIVB) was shut down by regulators, the name of Greg Becker, its CEO, also disappeared from the website of the Federal Reserve Bank of San Francisco.”

[YmoBeThere]

New York-based Signature Bank was closed down on Sunday. Heavy into crypto lending, it is the 3rd largest bank failure in history with $110 billion in assets as of December 31st.

First Republic bank receiving additional funding from the Fed and JPMorgan. With $181 billion in assets it would move into the #3 spot.

https://www.wsj.com/articles/first-r...organ-d11e68ca

[YmoBeThere]

If you are a Swedish retiree, this isn't a great sign.


Stockholm-based Alecta, which oversees more than $104 billion in assets, was SVB's fourth-biggest shareholder at the end of last year with a holding worth $605 million, according to data compiled by Bloomberg.

Alecta is the fifth largest shareholder in First Republic Bank, a position it added to toward the end of last year, and the sixth biggest owner in Signature Bank. Both of those banks also suffered steep one-day losses on Thursday.

https://www.pionline.com/pension-fun...-major-holding

[bundabergdevil]

Going to be a bumpy ride today.

[YmoBeThere]

Going to be a bumpy ride today.

So, you did have some Kardasians in tow?

[YmoBeThere]

Going to be a bumpy ride today.

So, you did have some Kardasians in tow?

Apparently, that was the thread killer right there.

[bundabergdevil]

Apparently, that was the thread killer right there.

They just kill the careers of NBA players.


At least one stock mentioned on this thread , CUBI, is having a rough go.

[Bluedog]

Going to be a bumpy ride today.

Long treasuries way up. Mega cap growth (read: major tech) mostly flat, but slightly up. Total stock market also slightly up. Small value down considerably. KBE (Bank ETF) waaaay down.
(As of now)

[Jeffrey]

At least one stock mentioned on this thread , CUBI, is having a rough go.

Yep, CUBI was down ~ 70% at one point today.

Another mentioned stock, CMA, was down ~ 50% at one point today.

Said differently, I bought a lot of bank stock today!

[bundabergdevil]

Yep, CUBI was down ~ 70% at one point today.

Another mentioned stock, CMA, was down ~ 50% at one point today.

Said differently, I bought a lot of bank stock today!

I suspected with your domain expertise that you have been extra busy today. Happy hunting!

[Jeffrey]

I suspected with your domain expertise that you have been extra busy today. Happy hunting!

You’re right, it’s been a very busy day. Mr. Market was smoking crack today and he was very irrational! Thanks!

[MChambers]

Thanks, that answers my question is how they are doing this.

Making up stuff as they go along. I will sleep so much better tonight.

I guess "mark to market" is no longer a thing?

Apparently the feds will loan against high quality securities based on their book value, not market value. Where can I get that deal?

Good read on SVB here, with a reference to the old adage "if you're going to panic, panic first!"

https://www.nakedcapitalism.com/2023...unwinding.html

[budwom]

bye bye Credit Suisse.
The stuff on SVB is very interesting...in addition to their accounting methodology, they had an unusually high number of depositors with large balances (hence not covered by FDIC insurance) and these depositors pay attention...when they smell trouble, off they go.

[Kdogg]

bye bye Credit Suisse.
The stuff on SVB is very interesting...in addition to their accounting methodology, they had an unusually high number of depositors with large balances (hence not covered by FDIC insurance) and these depositors pay attention...when they smell trouble, off they go.

Best to consolidate all the shadiness under one umbrella. Wonder if Deutsche Bank wants to join?

For the startups, having that kind of cash at the bank can be justified. They have little or no revenue so they need the operating funds to be liquid. For the established companies, well they are just dumb.

[OldPhiKap]

Best to consolidate all the shadiness under one umbrella. Wonder if Deutsche Bank wants to join?

For the startups, having that kind of cash at the bank can be justified. They have little or no revenue so they need the operating funds to be liquid. For the established companies, well they are just dumb.

Not sure that Deutsche Bank wants a potential buyer going through its loan portfolio during due diligence, even an expedited one.

[Kdogg]

Not sure that Deutsche Bank wants a potential buyer going through its loan portfolio during due diligence, even an expedited one.

559abfdd9093d1f3f2f55ea576d03903.jpg

[Jeffrey]

Not sure that Deutsche Bank wants a potential buyer going through its loan portfolio during due diligence, even an expedited one.

No worries…. It’s one of the primary tasks regulators perform every examination!

[OldPhiKap]

No worries…. It’s one of the primary tasks regulators perform every examination!

Um . . . yeah.

529D2B71-1981-410C-8608-09F2CD19BC1D.jpg