Depositors are safe. Investors will assam. Andukee aaa level lo selling.

[veerigadu]

I dont blame them. enthooo konthaaa vastheee saaal ani ammesthunnaruuu anukuntaaa investors

Mortgage securities lo paisaal pettina banks anni assam train ekkinayiiii....Dallas lo mathram inkaaa real estate strong antunna @futureofandhra

[dasari4kntr]

కంపెనీలో వాటా (equity) కన్నా కంపెనీకి అప్పు (secured corp bond) ఇవ్వడం మేలు…

[dasari4kntr]

 

 

 

 

 

 

 

 

 

[AndhraneedSCS]

There were so many banks in line and so Fed has to react so quickly and swiftly 

[anna_gari_maata]

2 hours ago, veerigadu said:

I dont blame them. enthooo konthaaa vastheee saaal ani ammesthunnaruuu anukuntaaa investors

Mortgage securities lo paisaal pettina banks anni assam train ekkinayiiii....Dallas lo mathram inkaaa real estate strong antunna @futureofandhra

So you think banks can run without investors? 

[Pavanonline]

39 minutes ago, dasari4kntr said:

 

 

 

 

 

 

 

 

 

Interesting decision by fed, so in other words all depositors are insured for unlimited amount? 

[dasari4kntr]

2 minutes ago, Pavanonline said:

Interesting decision by fed, so in other words all depositors are insured for unlimited amount? 

i dont think so…but fed is helping in other possible ways…in this situation…

fed dont have to take care of small banks (not part of SIFI)…but anyway stepped in because it is chain of events…could effect the systematically critical institutions…

its not possible to insure all unlimited amount…may be they would come in different ways to reduce the panic…

[veerigadu]

50 minutes ago, anna_gari_maata said:

So you think banks can run without investors? 

It depends on how much equity shareholders has in a particular bank. I believe it is possible to run a bank with  just a board of directors, depositors and consumers. This might not be common in vonerica and I don’t see that happening either. 

[hyperbole]

12 minutes ago, Pavanonline said:

Interesting decision by fed, so in other words all depositors are insured for unlimited amount? 

Everyday bank has to send their assets vs liabilities report to FDIC, whenever there is a liquidity concern FDIC kicks in.

here the case the banks are solvent meaning they have more assets than liabilities but cannot unlock as they parked in long term government bonds deemed as safe.

now with in 12 months fed increases rates to 5% and when the banks bought these bonds the rate of interest they!would be earning in 1.5% over 10 years but now 9 month short term bonds are giving 5% rates, the customers have more incentive to park their money else, imagine a company has $100 billion and if it has to park that money in a short term bond imagine it would earn $5 billion just as an interest. Now customers want to withdraw money and banks can’t break bonds without losing money, that is the predicament.

for that reason a bank should have a healthy mix of loan profiles and long term bonds, SVB has $60 billion deposits in 2019 and that balloned to $170 billion in 2021, those guys didn’t give out aa many loans but thought to park that money in mortgage backed securities(MBS) which are considered very safe as Freddie and Fannie mae insures their investments, they will not lose money at any cost if they realize the bonds over the full term. They were blind sided by fed rate increases and stupid on banka part to park 70% deposits in bonds

[veerigadu]

2 minutes ago, hyperbole said:

Everyday bank has to send their assets vs liabilities report to FDIC, whenever there is a liquidity concern FDIC kicks in.

here the case the banks are solvent meaning they have more assets than liabilities but cannot unlock as they parked in long term government bonds deemed as safe.

now with in 12 months fed increases rates to 5% and when the banks bought these bonds the rate of interest they!would be earning in 1.5% over 10 years but now 9 month short term bonds are giving 5% rates, the customers have more incentive to park their money else, imagine a company has $100 billion and if it has to park that money in a short term bond imagine it would earn $5 billion just as an interest. Now customers want to withdraw money and banks can’t break bonds without losing money, that is the predicament.

for that reason a bank should have a healthy mix of loan profiles and long term bonds, SVB has $60 billion deposits in 2019 and that balloned to $170 billion in 2021, those guys didn’t give out aa many loans but thought to park that money in mortgage backed securities(MBS) which are considered very safe as Freddie and Fannie mae insures their investments, they will not lose money at any cost if they realize the bonds over the full term. They were blind sided by fed rate increases and stupid on banka part to park 70% deposits in bonds

It’s purely management issue. They didn’t expect this interest rise. They anticipated the low interest rates until eternity I guess. That’s a shame. 

[anna_gari_maata]

20 minutes ago, veerigadu said:

It depends on how much equity shareholders has in a particular bank. I believe it is possible to run a bank with  just a board of directors, depositors and consumers. This might not be common in vonerica and I don’t see that happening either. 

So who are those verri pushpam depositors that will trust a bank without employees ? 

And who will pay for maintaining digital assets, atms, infrastructure etc. if investors pull out ?

[hyperbole]

4 minutes ago, veerigadu said:

It’s purely management issue. They didn’t expect this interest rise. They anticipated the low interest rates until eternity I guess. That’s a shame. 

Yes that’s shameful and what’s more shameful is SVB CEO is one of the governors in San Francisco Federal reserve bank, he basically is part of the committee who has first hand information about rate hikes

[veerigadu]

1 minute ago, anna_gari_maata said:

So who are those verri pushpam depositors that will trust a bank without employees ? 

And who will pay for maintaining digital assets, atms, infrastructure etc. if investors bail out ?

Depositors money tho assets kontaruuu anna. Salaries and others can be paid from liabilities. Have a look at balance sheet of companies. IPO leni companies anni chesedhiii idheee gaaaa

[pichhipullayya]

@veerigadu @dasari4kntr

First Republic Bank paristiti enti mari ?

30.16 USD−51.43 (63.03%)today

Mar 13, 3:37 PM EDT • Disclaimer

[dasari4kntr]

9 minutes ago, pichhipullayya said:

@veerigadu @dasari4kntr

First Republic Bank paristiti enti mari ?

30.16 USD−51.43 (63.03%)today

Mar 13, 3:37 PM EDT • Disclaimer

First Republic Bank executives issued a statement emphasizing the strength of the bank's capital, liquidity, and operations, and announced additional liquidity from JPMorgan Chase and the Fed. Raymond James downgraded the stock to Market Perform from Strong Buy, citing risks to earnings per share estimates, while J.P. Morgan analysts maintained their Overweight rating on the stock, describing last week's declines as a "dramatic overreaction."