Congratulations FRC investors / traders

[Gorantlamdhav]

8 minutes ago, hyperbole said:

They bought enough time to find a deal to sell themselves.

They have a very unique proposition and none of the big the big banks have such a concentrated amount of high net worth customers.

They are leaders in Private banking , basically if a depositor calls for some reason then it is not routed to 1800 numbers but a reliationship manager gets on the call and solves their issues. Also they do a lot of estate and wealth management and makes most of their profits from wealth management portfolios. They don’t do cards, unsecured loans or anything of that sort. Also their customer base is deep rooted and mostly referral based. They are a class apart when it comes to banking and customer service and the main reason high net worth candidates stick around with them.

 

I think this bank will not survive the situation, most of the money will be withdrawn and bank might be bought by some other bank or it will live as much smaller bank than it was. Stock holders are victims , I am thinking that stock will be under $5 soon 

[hyperbole]

2 minutes ago, dasari4kntr said:

now it makes sense…

 

 

It is a deposit, in 4 months either things improve or they have enough time to find a buyer

[hyperbole]

10 minutes ago, Gorantlamdhav said:

I think this bank will not survive the situation, most of the money will be withdrawn and bank might be bought by some other bank or it will live as much smaller bank than it was. Stock holders are victims , I am thinking that stock will be under $5 soon 

Firstly the bank has strong ties with industry and fed people, you can see how much money they pooled with in days of seeing trouble from SVB falllout, $100 billion fund backing is not a joke and almost seen no bank do it before. And they will not wait until a point it falls to $5, it will be long sold if they can’t stop people withdrawing more money.

$250k is insured no matter, people under $250k will be least bothered with this and that is rough 32% of the bank total deposits.

They also have their bonds, wealth management portfolios etc.

anyways it is a very attractive buy for the big banks

 

[Manishican]

Fed new unlimited scheme to exchange bonds for cash should prevent further bank failures.

[pichhipullayya]

Idi anta ok kani..ivala nalugu bank of America ATMs ki vellenu oka 60$ cash teeddam ani nalugu out of service unnai..

Dublin, CA, San Ramon CA ...

Asalu em jarugutondi..

[dasari4kntr]

1 hour ago, hyperbole said:

It is a deposit, in 4 months either things improve or they have enough time to find a buyer

yup 4 months…normal uninsured deposit….

 

 

The $30 billion rescue of First Republic Bank began with a series of phone calls Tuesday between JPMorgan Chase CEO Jamie Dimon, Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen.

Dimon was in Washington, according to a person familiar with the events, and he wanted to discuss some issues that concerned bank capital. The subject soon turned to the fate of the nation's 14th-largest bank.

Shares in the San Francisco lender had been sliding since last week's failure of Santa Clara-based Silicon Valley Bank, and an $70 billion in financing from JPMorgan Chase and the Federal Reserve announced Sunday failed to alleviate the pressure as this week began. The stock dropped 62% on Monday.

The CEO of the nation's biggest bank, the Fed chair and the Treasury secretary started brainstorming, according to people familiar with the discussions, with input from another powerful regulator: Federal Deposit Insurance Corporation Chair Martin Gruenberg. Their idea? JPMorgan could give First Republic some deposits.

Such an infusion could help solve a major concern. Deposit withdrawals are what put pressure on Silicon Valley Bank and made it impossible to continue standing on its own. Last Thursday, customers withdrew $42 billion in just one day, leaving the bank with a negative cash balance, and regulators seized the bank Friday. The concern was the same could happen to First Republic.

The next day, Dimon took this idea to some of his peers. At a Bank Policy Institute event, he approached other executives, including Citigroup CEO Jane Fraser, and commitments for $5 billion in uninsured deposits from Citigroup (C), Bank of America (BAC) and Wells Fargo (WFC) soon followed. JPMorgan also agreed to put in $5 billion.

JPMorgan Chase & Company Chairman and CEO Jamie Dimon testifies at a Senate Banking Committee hearing in 2022. (AP Photo/Jacquelyn Martin)

 

An infusion of $20 billion was considered enough, but these four banks decided to seek more from smaller rivals on Wednesday and Thursday. U.S. Bancorp (USB), Truist (TFC), PNC (PNC), State Street (STT) and Bank of New York Mellon (BK) each agreed to deposits of $1 billion. The last to join, according to the people familiar with the events, were Goldman Sachs (GS) and Morgan Stanley (MS). They each agreed to deposit $2.5 billion.

 

“A whole bunch of deposits flowed into the big banks over the last five days," said one of the people familiar with the deal. "This is basically recirculating the capital.”

The attempted rescue of one of the country's biggest regional lenders places Dimon at the center of a national banking crisis for the second time in 15 years.

In 2008, he acted twice to help stabilize the financial system when JPMorgan Chase (JPM) purchased New York investment bank Bear Stearns in March of that year, getting a $29 billion backstop from the federal government, and then Seattle’s Washington Mutual in September of 2008. In the case of Washington Mutual, JPMorgan Chase purchased its operations after regulators seized the Seattle thrift. It still is the nation’s largest ever bank failure.

The two deals turned JPMorgan Chase into the nation’s biggest coast-to-coast bank and provided it with an even more powerful hand on Wall Street. They also saddled it with years of legal and regulatory headaches. Dimon has said if he could do it over again he would not have purchased Bear Stearns for those reasons.

The $30 billion infusion announced Thursday lifted First Republic's shares, which ended the day up 10%. Powell, Yellen and Gruenberg said in a joint statement that "this show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system."

JPMorgan is getting no special arrangements as part of this deal, according to one of the people familiar with the talks. "These deposits will be treated the exact same way anyone’s non-insured deposit would be treated," this person said. The deposits have to stay at First Republic for 120 days and earn interest at the same rate of current depositors.

"The selfish part," this person added, "is strengthening the banking industry, which lifts all boats."

[Guest]

2 hours ago, hyperbole said:

They bought enough time to find a deal to sell themselves.

They have a very unique proposition and none of the big the big banks have such a concentrated amount of high net worth customers.

They are leaders in Private banking , basically if a depositor calls for some reason then it is not routed to 1800 numbers but a reliationship manager gets on the call and solves their issues. Also they do a lot of estate and wealth management and makes most of their profits from wealth management portfolios. They don’t do cards, unsecured loans or anything of that sort. Also their customer base is deep rooted and mostly referral based. They are a class apart when it comes to banking and customer service and the main reason high net worth candidates stick around with them.

 

If this was in place of SVB timing wise of it was first, there wouldn’t be no rescue operation. Since this is going to be third, everyone including Fed came to rescue. They just didn’t want this to go like a chain. It doesn’t matter how strong the fundamentals are, you can’t survive when there are no deposits. One of my close friend works in a high position there 

[Guest]

1 hour ago, pichhipullayya said:

Idi anta ok kani..ivala nalugu bank of America ATMs ki vellenu oka 60$ cash teeddam ani nalugu out of service unnai..

Dublin, CA, San Ramon CA ...

Asalu em jarugutondi..

Bokka - The hole

[Balibabu]

Most of the bigshots are afraid, and as a result, they are transferring their funds from bank deposits to cryptocurrency. This will likely cause a boom in the cryptocurrency market for a few months until the banks return to a normal state. Additionally, some of the big players, such as JP Morgan, are aware of what will happen and are taking steps to rescue the banks, even if they are competitors with some return deals.

[Gaali_Gottam_Govinda]

1 hour ago, pichhipullayya said:

Idi anta ok kani..ivala nalugu bank of America ATMs ki vellenu oka 60$ cash teeddam ani nalugu out of service unnai..

Dublin, CA, San Ramon CA ...

Asalu em jarugutondi..

Welcome to uttutti bank sir......

 

After we deposit $$$......Banks with our money.......... manaki 0.01% interest ichi vaalu bayata 3 rupees interest ki addaima vaadiki ichi chetulu estestaru when things bust.

[csrcsr]

1 hour ago, pichhipullayya said:

Idi anta ok kani..ivala nalugu bank of America ATMs ki vellenu oka 60$ cash teeddam ani nalugu out of service unnai..

Dublin, CA, San Ramon CA ...

Asalu em jarugutondi..

anna u in trivalley ?? epudu kanapadaledu rofl

[pichhipullayya]

16 minutes ago, csrcsr said:

anna u in trivalley ?? epudu kanapadaledu rofl

Anna nuvvu ee range lo papalatho busy memu ekkada kanapadataam..

 

[hyperbole]

1 hour ago, Balibabu said:

Most of the bigshots are afraid, and as a result, they are transferring their funds from bank deposits to cryptocurrency. This will likely cause a boom in the cryptocurrency market for a few months until the banks return to a normal state. Additionally, some of the big players, such as JP Morgan, are aware of what will happen and are taking steps to rescue the banks, even if they are competitors with some return deals.

As much as it was a  risk but most of it is fueled by FUD on twitter which led to massive withdrawals from SVB (peter theil started), in 2 days it caught on like a wild fire, led to $48 billion withdrawals and that set the stage for other regional banks.

if SVB didn’t happen the situation would have normal business day

[veerigadu]

3 hours ago, pichhipullayya said:

Idi anta ok kani..ivala nalugu bank of America ATMs ki vellenu oka 60$ cash teeddam ani nalugu out of service unnai..

Dublin, CA, San Ramon CA ...

Asalu em jarugutondi..

Panic 

[Manishican]

Fed has opened unlimited scheme for banks to exchange bonds for cash after Svb collapse