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Jimi

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Everything posted by Jimi

  1. "Obviously"? P-lease.... Manure, too, may have retained value through this episode, but it remains nothing more than a pile of shit.
  2. Sickening. Greg Becker, the bank's president, cashed out $27 million between 2019-2021. https://www.salary.com/tools/executive-compensation-calculator/svb-financial-group-executive-salaries?year=2021 That's only one executive at one bank. There is no fear, no risk, no consequence.
  3. All that remains before the Asia open is for the Oracle of Omaha to bequeath his blessing on US regional banks.
  4. UBS DEAL FOR CREDIT SUISSE IS SAID VALUED AT ABOUT 2 BLN SWISS FRANC.
  5. My brother was in from Texas, so my sister flew up from SoCal so that the three of us could spend 3 hours at Wells Fargo completing the paperwork to identify us a successor trustees. To get to this stage required 4 previous hours, and a trip to Oakland to obtain a letter from a doctor too busy or indifferent to put it in the mail. The whole effort had almost collapsed anew when Wells legal told my in-branch contact over the phone that because the doctor’s letter did not specify “financial incapacity” (only, “incapacity”…), that it would not suffice. I dropped my only f-bomb, indicated that Wells now was establishing itself as the only party with authority over my father & family’s money, and that my next step was “to escalate.” I generously did not mention the history of dormant accounts. It took three hours Friday to establish the basis for us to write our signatures four times. As a child, my parents opened a savings account for me when I was in 2nd grade, at a small local bank called American Savings & Loans. My mom would take me in to deposit my little cash, and I would watch my little account balance grow. It was a powerful lesson. That bank was acquired by Crocker, which in turn was acquired by Wells, which was my bank as I went off to college. In grad school, something odd happened: a monthly fee appeared on my statements. I called and it was represented as some bullshit “courtesy monitoring service” to which I had agreed. As a beyond-broke grad student, I told them I had never agreed to any such service, and they reversed it. But I was pissed. Got married within months, and happily consolidated my paltry cash with my wife’s paltry cash in her BofA account: wanted nothing ever again to do with Wells. BofA unsurprisingly turned out to be a predictable piece of shit: we waited very patiently to buy a house and damn near bottom-ticked the cycle Doc top-ticked live on this site from Florida with his freaking open house with cookies (and he did not accept the highest bid, IIRC). Having carried hefty balances, having cycled a ton of salary & bonus earnings for 10 years through our accounts, with sterling credit, and with enough cash to buy our house outright but preferring the flexibility of a conforming loan, BofA refused to originate the loan. It was peak-pain for Cali housing and BofA would not do our business. We found a mortgage broker who would, bought the house with a $417K loan, and immediately closed our BofA accounts in favor a small local bank, which… was of course acquired by a regional bank this past summer, just like my little 2nd grade thrift was. Fuck the Big Banks. Fuck ‘em to hell. I sort of abandoned this site and financial news engagement after 2009 for a long spell because it was so grotesquely handled. Paulson deftly portrayed the worst-case as the most-likely case to leverage through public backstopping of his buddy’s excesses. Several Big Banks should have been sold off to the smaller, more responsibly run banks for dimes or pennies on the dollar. Carved up and sold out. As creative destruction was intended, Capitalism’s redeeming mechanism. And to instill a generation of terror & fear in finance. Instead within a dozen years, “risk-free” rates were effectively set at zero. Of course they were. And speculative idiocy reigned. Of course it did. So, here we are anew. Banks in distress, after years of risk-taking and obscene/unearned bonus-paying, all pursued in the moral-hazard shadow of the GFC. “Too Big to Fail” isn’t a defect: it is the crowning feature that assures private losses are absorbed on the public ledger. Of course reckless uninsured depositors at SVB were backstopped. We know where this all leads. We all know that DC will take care of Wall Street. Plus ça change….
  6. Swiss National Bank in talks with UBS to acquire Credit Suisse....
  7. If you presuppose that the credit risk story has to run a natural course to the large money-center banks, then we should be purchasing 5-year credit default swaps on the (currently) fortress-names like BofA, Goldman, JPM - for the eventuality.
  8. The bailouts of SVB, Signature, First Bank, Credit Suisse all reveal the fetid fragility of the system. The bailouts of SVB, Signature, First Bank, Credit Suisse all reveal the robust resilience of the system. Place your bets.
  9. Which is fortunate for insiders, because the increasing urgency betrayed by examiners signaled the need for insiders to sell their shares, and monetize their equity before its collapse.
  10. The proof that there is no crisis is the fact that distressed parties are finding support....
  11. "We are from the federal government JPMorgan Chase, Bank of America & Goldman Sachs, and we are here to help you."
  12. I dunno... but if a couple American banks fail, and then a big Swiss bank shudders, wouldn't it be past time for something in Japan to flounder? MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES (in billions of dollars) HOLDINGS 1/ AT END OF PERIOD Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Country 2023 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Japan 1104.4 1076.3 1082.3 1064.4 1116.4 1196.0 1230.7 1232.7 1219.9 1215.0 1229.0 1303.0 1299.9 China, Mainland 859.4 867.1 870.2 877.9 901.7 938.6 939.2 938.8 951.8 976.0 1013.2 1028.7 1033.8 United Kingdom 668.3 654.5 645.8 641.3 664.8 646.5 636.6 617.3 636.5 614.3 636.5 627.0 610.7 Belgium 331.1 354.3 332.9 327.2 325.0 287.8 285.4 273.5 268.2 255.6 264.5 258.4 243.0 Luxembourg 318.2 329.4 311.1 298.4 299.9 308.4 306.5 309.3 296.5 296.2 303.2 316.4 313.0 Switzerland 290.5 269.7 266.5 258.4 273.3 290.6 283.1 291.5 287.1 268.0 270.7 278.0 295.4 Cayman Islands 285.3 283.8 283.5 291.7 301.5 308.6 293.4 302.3 295.4 292.5 293.9 275.9 272.1 Canada 254.1 215.1 228.7 218.2 199.9 228.2 227.9 206.2 225.5 234.7 236.5 224.1 217.6 Ireland 253.4 254.8 250.3 245.1 265.4 275.6 277.5 285.6 288.8 309.7 315.9 314.9 308.6 Taiwan 234.6 225.5 223.9 214.6 215.3 231.5 238.2 232.3 229.1 226.9 236.9 247.0 247.1 India 232.0 224.1 219.0 213.0 212.6 221.2 212.0 208.8 203.7 199.0 199.8 199.8 198.6 Hong Kong 226.8 221.0 201.0 185.0 178.7 189.8 192.8 187.3 185.6 195.0 207.7 205.4 225.6 Brazil 214.0 217.4 225.9 220.1 221.8 227.3 232.9 226.1 228.4 229.2 233.3 237.4 236.1 Singapore 187.6 182.9 186.2 175.8 176.4 188.3 187.2 180.9 177.1 182.1 190.9 192.0 191.6 France 183.9 189.0 203.6 217.4 206.7 232.7 231.8 236.3 242.5 242.9 246.0 238.7 232.9 Saudi Arabia 111.0 119.7 121.4 120.7 121.0 122.1 121.6 119.2 114.7 115.7 115.5 116.7 119.4 Korea 105.8 102.9 100.3 98.7 104.9 117.5 111.9 111.9 115.3 117.3 118.9 121.9 123.8 Norway 104.4 92.0 97.7 95.7 99.6 111.1 112.5 112.9 109.0 115.6 116.7 120.1 115.8 https://ticdata.treasury.gov/Publish/mfh.txt
  13. She acknowledged that inflation has outpaced ECB’s December estimates, revealing its ungrounded optimism; and then immediately supplies a rosy soft-landing return to 2.0% target by 2025.
  14. “Our Tier-1 stuff is so… Swiss… that we are going to take $54 billion in loans just as a public flex to prove how liquidy & above average some ratios are… or something.”
  15. Going to throw something out without having thought it through. The Chinese-negotiated rapprochement between Iran & Saudi Arabia signed in the past week surprised me. Maybe it's an empty note, maybe it's a watershed that diplomatically signals China's ascension/America's decline/Iran's Reemergence/Saudi's Swapping sponsors. On the back of that, headlines have it that the Saudi pocketbook that had backed Credit Suisse isn't going to provide such backing anymore. Are these development related? That is, are we going to see a shift in petrodollar clout - including Iran's - out of Western banks & assets in favor of an Asian future? I dunno. But the timing is exquisite.
  16. UPDATE (REUTERS): EU OFFICIALS BELIEVE THEY BECOME INVISIBLE WHEN THEY PLACE HANDS OVER EYES
  17. Uhh... I was to understand that bank crises were scheduled for Thursday & Fridays, so that bailouts could be orchestrated over weekends?
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