This is also inaccurate. A bank cannot avoid losses by rotating a security from “available for sale” to “held to maturity”. When they move it from AFS to HTM, it moves over at the market value at the time of the change and losses are immediately recognized in earnings. The idea banks are moving extremely easy to sell assets to HTM “knowing” they are going to soon lose more money on them is utterly ridiculous.
Yea it’s hard to argue against the idea, the deck is stacked against crypto, when the Custodia decision dropped. It’s pretty obvious the USG wants to make it incredibly difficult for crypto to exist, even recently describing it as a threat to national security.
That was posted to rebut the idea that this is some tech (whatever that means) or crypto specific banking problem, when it’s plainly not.
What's false about banks sitting on large losses? This is an argument about whether the banking collapses and issues to date have been due to banking crypto or tech companies. My position is that they are not. Try to keep up. If you want to argue about bank accounting practices, then go for it. I don't give a shit.
It’s usually a good idea to be accurate in critiques else it calls the credibility of the person and his critiques into question. I don’t think that’s news.
The chart below is from Bloomberg finance...maybe that's credible. And the point is that the banking issues are not crypto/tech focused. Again, I don't care about accounting issues. Still waiting for someone to explain why First Republic is a crypto/tech failure and why all of the other regional bank issues are due to crypto/tech.
Ok and but for a straight up bank run both of those banks would’ve been fine not sure what your point is. If your expectation is for every bank to be prepared for a bank run then the current system just straight up doesn’t work
But scoreboard. Spoiler (hint: if you started buying BTC daily at like the absolute top of $69k, you're still up 15%).
No, that was the problem that made them fail. A straight up bank run by very interconnected clientele and with the use of mobile banking made it a very rapid bank run. Yes, the reality is every bank is vulnerable to a bank run. It’s yelling fire in a crowded theatre. The unrealized treasury losses at certain banks makes them seem vulnerable*. This perceived vulnerability makes people leave regional banks to BofA for instance since it’s a GSIB bank even if BofA itself has large losses on treasuries it’s all on the belief the government won’t let it fail and I’ll get my full deposits even if it’s beyond the 250k. *That unrealized treasuries chart also fails to mention if those treasury losses are hedged or not.
You gotta investigate Jay Powell for standing up there today and saying the banks are stable. We are gonna be losing one a week at this rate.
The banking system is sound and stable. *another bank collapses 2 hours after press conference* Truly impressive that Powell still has a job.
master of the universe tech bros turning into dustbowl farmers at the slightest provocation wasn't something i thought would happen. Jerome Powell should also be sent to gitmo
no no no these high priests of capital actually do the invocation rituals and carefully manage the economy with their spells. they aren't just there to discipline the working class.
Whether they actually even do this is up for debate Unemployment been great in the face of all these bank killing hikes
every venture capital idea is some sort of parasitic rent seeking novelty. absolutely zero interest in funding an idea that builds anything.
So basically we are going to wipe out how much in shareholder equity in these banks plus hope we’ve truly backstopped all deposits? How the fed or FDIC can say nothing is beyond me, this is insane and happening right in front of our eyes.
Pot kettle given your laser eyes comment. And the news of that tweet is about banks sitting on massive unrealized losses that can’t be blamed on crypto or tech.
The first tweet contradicts itself. The primary reason a regular person would care if their bank is insolvent is if they are above the FDIC limit. So they go to the 8 GSIB banks they view won’t fail. But right now the stock market is hunting to find the most vulnerable in the herd to see if they can flush some out.
I synced my Schwab and eTrade accounts to move over money above the SIPC limit and got an instant call from Schwab telling me my money is safe and to watch a YouTube video from the CEO explaining why Ofc I’m highly certain my brokerage account is fine but why even risk it. Hell E*trade gonna give me a nice bonus to move the funds over anyways.
Funny enough they called me yesterday afternoon just wanting to talk to see how I was feeling about the latest volatility
Thats how they framed this call just thought the timing was suspicious. I appreciate them proactively reaching out if it was merely a coincidence.
It’s not coincidence, I got my first call from my bank of 6 years ever last week. They wanted to see if I got their shitty email offer for a credit card 12 months interest free and just check in.
It's so predictable what gatorfromiowa is gonna post. I'm fairly certain chatgpt could mimick him exactly within minutes of reading the board.