Share to Twitter Share to Linkedin Despite ongoing silent runs on the Regional and Community Banks, it appears that both Fed Chair Powell and Treasury Secretary Yellen view the events of the recent past (SVB VB , Signature Bank, First Republic, Credit Suisse, and now Deutsche Bank) as one-off events and not symptomatic of stress in the world’s financial system. The dictionary defines “obtuse” as “annoyingly insensitive or slow to understand.” We can’t think of anything more precise! The chart at the top shows the continued decline in the value of S&P’s Regional Banking ETF through the close of business on Friday (March 24 th ). On Wednesday, the Fed raised interest rates 25 basis points despite liquidity issues in the banking system and the apparent loss of confidence in that system by a significant portion of the public. During his press conference, Powell acknowledged some FOMC concerns over banking issues, said that they had considered a "pause,” … [Read more...] about Obtuse: The Fed & Treasury View Of Banking Issues
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Make Your Own Bank Run On These Blue-Chip Yields
Share to Twitter Share to Linkedin Is it time for us contrarians to “buy the dip” in bank stocks? We’re drowning in big bank-scare headlines. Silicon Valley Bank (SIVB VB ) knuckled under in days, Signature Bank (SBNY) wasn’t too far behind, and across the pond, Credit Suisse (CS) needed a buyout bailout from rival UBS (UBS) . The next bank run, however, won’t be with the big boys . Too big to fail, baby . Here, we’ll find not only government help but also secure yields of up to 5.1%—trading at a discount, no less. Why the big guys? Well let me show you. Last week, my software firm received this email from one of our vendors: “Brett, Just wanted to give you our new banking details. We’re out of SVB; we’re moving to JPM.” JPM for the win. And they’re not the only big bank benefiting. CNN recently reported that Bank of America BAC (BAC) , Wells Fargo WFC (WFC) and Citigroup C (C) “have all experienced a … [Read more...] about Make Your Own Bank Run On These Blue-Chip Yields
Banks Need To Start Red Teaming Themselves
Share to Twitter Share to Linkedin The failure of Silicon Valley Bank, the near-collapse of Credit Suisse, and other recent troubles in the banking sector are, in part, a consequence of actions taken by U.S. Federal Reserve and other central banks to combat rising inflation, they are also partly the result of mistakes made by the banks themselves – including a failure to anticipate the impact those Fed policy decisions would have on their depositors and on their balance sheets. One way that this could have been avoided was through greater critical, contrarian analysis – the sort of critical, contrarian analysis that decision-support red teaming provides. For those unfamiliar with the concept , decision-support red teaming was created by the military and intelligence community to help them navigate today’s complex operating environment and make better decisions in situations that are fraught with ambiguity and uncertainty. These are the exact sort of … [Read more...] about Banks Need To Start Red Teaming Themselves
Where to Invest During a Banking Crisis: Safe Options for Your Money
(CTN News) – When a banking crisis hits, it can be scary and uncertain. With economic uncertainty looming, knowing where to invest your money can be tough. The good news is that there are still safe places to put your money during a banking crisis. This article will explore some of the best options for investing your money during a financial crisis. Government Bonds Government bonds are considered one of the safest investment options during a banking crisis . They are issued by the government and backed by the full faith and credit of the government. This means that they are considered to be almost risk-free investments. In times of financial uncertainty, investors flock to government bonds as a safe haven for their money. High-Quality Corporate Bonds High-quality corporate bonds are another safe investment option during a banking crisis. Companies issue these bonds with strong credit ratings and financial stability. While they may not be as safe as … [Read more...] about Where to Invest During a Banking Crisis: Safe Options for Your Money