Will U.S. gov't broker a First Republic sale like Swiss did with Credit Suisse? FDIC has already sold 1 of 2 failed regional banks (Signature), and gov't already helped 11 big banks backstop First Republic.
Banking
Lots of tech leaders mock colleges as ‘woke madrassas’ & call student-loan forgiveness moral hazard. But when their money’s at risk, they're all for privatizing profits and socializing losses.
UBS market cap ($56.6b) & 2022 profit ($7.6b) vs. Credit Suisse $8b market cap & 2022 loss (-$7.9b) make a rival rescue tempting. But UBS wants many assurances.
UBS this weekend is reviewing options for a takeover of its primary rival Credit Suisse, which would come with government backing. Here's a Reuters briefing on this real-time situation.
Mortgage rate ace Matt Graham at Mortgage News Daily suggests 6.5% rates may fall more next week, but read his caveats.
Good essay by SVB customer & creative agency owner. She tells her SVB story and why she thinks VCs caused bank run. 'I'll keep my SVB debit card as a souvenir.'
Is First Republic dropping again because of dividend cut or sale rumors? Either way, First Republic rescue prevented broader contagion.
Bank expert Steve Eisman on bank bailout endgames, bank reg weaknesses, Fed strategy, whether tech is still a good investment, and what to short.
SVB Financial Group filed for Chapter 11 bankruptcy, which is a court-supervised reorg as opposed to a wind down. Gives them time to seek buyers for its assets while under FDIC purview.
First Republic rescue by 11 big banks who deposit $30b. This firewalls First Republic, protecting US banking system from regional banks falling like dominoes.
First Republic bank run less likely, but First Republic for sale maybe per Bloomberg. They've sold before only to return to independence.
$54b relief for Credit Suisse for now stems $165b market value loss since March 8 for European banks
To pad liquidity & investor confidence, Credit Suisse borrowing up to $54b from Swiss central bank. May help sustain high rate strain. First lifeline for major global bank since 2008.
Bloomberg says these 30 banks are deemed so important by international regulators they need to hold extra capital and meet other standards.
Ben Carlson asks 8 key questions about the crisis, including: Is it the Fed's fault? Why are rates collapsing? Is tech making world less stable? Is my money safe?
