Microsoft Activision deal - back in the spotlight.
Bank runs have cooled - but there are still questions.
Resilient - yes, that's the word Fed officials will use. Over and over to describe banks.
PLUS we are now on Spotify and Amazon Music/Podcasts!
Click HERE for Show Notes and Links
DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.
Love the Show? Then how about a Donation?
Follow John C. Dvorak on Twitter
Follow Andrew Horowitz on Twitter
Warm Up
- More Banks - But not to worry
- Odds are for RATE CUTS this year starting July
- Chili Cook Off - The Results (ask Andrew about the Cocoa)
- Crawfish Boil and BBQ this weekend - What is JCD Doing?
- Dueling message on Seaweed Blob
- Moores law - Coiner - Dies
Market Update
- Big Bucks pulled from banks - (they have been screwing depositors for years with low rates)
- Big banks getting those Big Bucks
- Recession odds increased with all of these problems
A Moment
- Gordon Moore, the Intel Corp. co-founder whose theory on computer-chip development became the yardstick for progress in the electronics industry, has died. He was 94.
Bank Notes
- Nearly $100 billion in deposits pulled from banks; officials call system 'sound and resilient'
- Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and more than a dozen other officials convened a special closed meeting of the Financial Stability Oversight Council on Friday.
--- "The Council discussed current conditions in the banking sector and noted that while some institutions have come under stress, the U.S. banking system remains sound and resilient," the statement said.
- Data released Thursday showed that institutions took a daily average of $116.1 billion of loans from the central bank's discount window, the highest since the financial crisis, and have taken out $53.7 billion from the Bank Term Funding Program.
Sunday - Kashkari: “The banking system is resilient, and it’s sound,” Kashkari told Margaret Brennan on CBS’s “Face the Nation.” “The banking system has a strong capital position and a lot of liquidity and has the full support of the Federal Reserve and other regulators standing behind it. Now, I’m not saying that all of the stresses are behind us, I expect this process will take some time.”
Controversial
- Big banks, advising smaller banks...
- The dynamic has put big banks like JPMorgan and Goldman Sachs in the awkward position of playing multiple roles simultaneously in this crisis. Big banks are advising smaller ones while participating in steps to renew confidence in the system and prop up ailing lenders like First Republic, all while gaining billions of dollars in deposits and being in the position of potentially bidding on assets as they come up for sale.
New Programs - Because Banks are Sound
- US authorities are considering expanding an emergency lending facility for banks in ways that would give First Republic Bank more time to shore up its balance sheet, according to people with knowledge of the situation.
- AND YET - "I think this is more of a Bear Stearns moment. I think a lot of people, including me, said when they bailed out Bear Stearns, they increased moral hazard. They created an expectation of further bailouts," former FDIC Chair Sheila Bair said Friday
- "[The government is] trying to imply that all uninsured are protected, which they don't have legal authority to do, frankly, and this is putting pressure on community banks," she said. "It's really troubling."
First Citizens Buys Silicon Valley bank - SWEETHEART DEAL
- First Citizens BancShares is acquiring $72 billion in SVB assets at a discount of $16.5 billion
- But even after the deal closes, the FDIC remains on the hook to dispose of the majority of remaining SVB assets, about $90 billion, which are being kept in receivership.
- And the FDIC agreed to an eight-year loss-sharing deal on commercial loans F...
Bank runs have cooled - but there are still questions.
Resilient - yes, that's the word Fed officials will use. Over and over to describe banks.
PLUS we are now on Spotify and Amazon Music/Podcasts!
Click HERE for Show Notes and Links
DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.
Love the Show? Then how about a Donation?
Follow John C. Dvorak on Twitter
Follow Andrew Horowitz on Twitter
Warm Up
- More Banks - But not to worry
- Odds are for RATE CUTS this year starting July
- Chili Cook Off - The Results (ask Andrew about the Cocoa)
- Crawfish Boil and BBQ this weekend - What is JCD Doing?
- Dueling message on Seaweed Blob
- Moores law - Coiner - Dies
Market Update
- Big Bucks pulled from banks - (they have been screwing depositors for years with low rates)
- Big banks getting those Big Bucks
- Recession odds increased with all of these problems
A Moment
- Gordon Moore, the Intel Corp. co-founder whose theory on computer-chip development became the yardstick for progress in the electronics industry, has died. He was 94.
Bank Notes
- Nearly $100 billion in deposits pulled from banks; officials call system 'sound and resilient'
- Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and more than a dozen other officials convened a special closed meeting of the Financial Stability Oversight Council on Friday.
--- "The Council discussed current conditions in the banking sector and noted that while some institutions have come under stress, the U.S. banking system remains sound and resilient," the statement said.
- Data released Thursday showed that institutions took a daily average of $116.1 billion of loans from the central bank's discount window, the highest since the financial crisis, and have taken out $53.7 billion from the Bank Term Funding Program.
Sunday - Kashkari: “The banking system is resilient, and it’s sound,” Kashkari told Margaret Brennan on CBS’s “Face the Nation.” “The banking system has a strong capital position and a lot of liquidity and has the full support of the Federal Reserve and other regulators standing behind it. Now, I’m not saying that all of the stresses are behind us, I expect this process will take some time.”
Controversial
- Big banks, advising smaller banks...
- The dynamic has put big banks like JPMorgan and Goldman Sachs in the awkward position of playing multiple roles simultaneously in this crisis. Big banks are advising smaller ones while participating in steps to renew confidence in the system and prop up ailing lenders like First Republic, all while gaining billions of dollars in deposits and being in the position of potentially bidding on assets as they come up for sale.
New Programs - Because Banks are Sound
- US authorities are considering expanding an emergency lending facility for banks in ways that would give First Republic Bank more time to shore up its balance sheet, according to people with knowledge of the situation.
- AND YET - "I think this is more of a Bear Stearns moment. I think a lot of people, including me, said when they bailed out Bear Stearns, they increased moral hazard. They created an expectation of further bailouts," former FDIC Chair Sheila Bair said Friday
- "[The government is] trying to imply that all uninsured are protected, which they don't have legal authority to do, frankly, and this is putting pressure on community banks," she said. "It's really troubling."
First Citizens Buys Silicon Valley bank - SWEETHEART DEAL
- First Citizens BancShares is acquiring $72 billion in SVB assets at a discount of $16.5 billion
- But even after the deal closes, the FDIC remains on the hook to dispose of the majority of remaining SVB assets, about $90 billion, which are being kept in receivership.
- And the FDIC agreed to an eight-year loss-sharing deal on commercial loans F...
Activity