While everyone else is focused on the firings of Tucker Carlson (FOX) and Don Lemon (CNN), Joe Biden quietly submitted a War Powers Resolution which puts American boots on the ground in Djibouti, Ethiopia, & Sudan for an indefinite amount of time.
Meanwhile, in other stupid news, Biden Energy Secretary Jennifer Granholm says she supports requiring the U.S. military to adopt an ALL-electric vehicle fleet by 2030…but, about battlefield realities. There’s zero chance of our military forces being able to field an all-EV fleet in a mere 7 years. More importantly, such an effort would make the military almost completely dependent on China for its source of fuel. Then there’s the charging thing…somebody…make the stupid stop!
There is more than $22 Trillion in the U.S. banking system. The FDIC has $124.5 Billion on its balance sheet and a $100 Billion line of credit from the U.S. Treasury. FDIC assets cover only 1.26% of deposits. About the size of Silicon Valley Bank. One bank. Let that sink in. Of course, the FDIC doesn’t cover anything above $250k… so basically no businesses. It’s practically worthless. People trust banks more than they should. Tier 1 leverage ratios (tier 1 capital/consolidated assets) show just how much more leveraged banks are vs stablecoins. Silicon Valley Bank had $209 billion in assets and over $175 billion in deposits. They couldn’t redeem $42 billion. Just to illustrate my earlier point on leverage ratios, duration mismatch and the fact that banks don’t have people’s cash. Most banks only have ~15% tier 1 capital. The Total Capitalization Ratio for banks is approx. 15.0% with Tier 1 Capital of around 13.0%. Many people incorrectly believe that their bank deposits are 100% backed with corresponding fiat currency.
Really let this sink in… The FDIC doesn’t have enough assets to cover a major bank collapse like First Republic Bank. Now what happens when they all start to fail? Or if the dollar loses reserve currency status? We will see bank runs, a flight into real goods, possibly hyperinflation, and maybe even deflation as people buy on credit…until a credit collapse.
DEEP THOUGHT FROM VP KAMALA HARRIS: “I think it’s very important…for us, at every moment in time and certainly this one, to see the moment in time in which we exist and are present.”
Press Secretary Jean-Pierre: “[Republicans] are fighting to put fentanyl on the street by defunding border patrol… The only things House Republicans are committed to giving Americans are increased crime, lower economic growth, and more manufacturing jobs sent back to China.” FACT CHECK: Republicans on the House Homeland Security Committee introduced legislation designed to beef up border security. The Border Reinforcement Act of 2023, calls for the resumption of border wall construction, hiring 22,000 Border Patrol agents, supporting local law enforcement, etc….WHY ALL THE LIES?
If our elections had: Voter ID Hand counts In-person voting only on election day (not election month+) Actual signature verification for absentee ballots No mass mail-in ballots No drop boxes or ballot harvesting Trump would win the popular vote in 2024 by 10+ pts…YEP.
The assumption that Joe Biden is necessarily the Democrat’s best bet in 2024 should be vigorously challenged. He should face his primary challengers in a meaningful debate.
BIDEN: “My grandpop…died in the same hospital I was born in two weeks before I was born” Except Biden’s “grandpop” died in Baltimore, MD, in September 1941 — and Biden wasn’t born until November 1942 in Scranton, PA.
MORE FROM THE BRAIN-DEAD FILES:
BIDEN: “We finally beat Big Pharma!” That’s news to Big Pharma 🙂
NOT OKAY FILES: “Trans Marathoner Defeats 14,000 Women in Race after Competing as Man Months Earlier” #Cheater #SaveWomensSports #SaveWomensSpaces
No matter what the facts are about Ray Epps, his ultimate usefulness now is in how he reveals that the leftwing media never really believed their own hype about J6. When left with the choice to chastise a man who encouraged people to do what they call an “insurrection”, or to defend him if it means maligning MAGA- they choose the latter. They never believed “democracy was at stake” or that an “insurrection” akin to “Pearl Harbor” or “9/11” happened. If they did believe these things, they could never provide any coverage for a man who spent 2 days insisting that everybody do the very thing they’re trying to desperately convince everyone was the worst thing that’s ever happened.
BIDEN: “There’s no such thing as someone else’s child. No such thing as someone else’s child. Our nation’s children are all our children.” Sounds like Mao, or Stalin.
Running again suggests we greatly underestimated the willingness of the DNC to stare down BIDEN’S obvious and accelerating decrepitude. The Democrats are now The Empty Suit Party.
Now Fauci admits masks don’t work after forcing them on kids. Admits that vax didn’t stop transmission. Admits lockdowns didn’t work and natural immunity does. The self-righteous Dems and media nitwits that lionized that fool need to be held accountable.
First Republic has failed and has gone into FDIC receivership.
**************
Reuters
“New York Fed limits types of firms that can access its reverse repo facility”
By Michael S. Derby
April 25, 2023
The Fed’s reverse repo facility is one of two tools the central bank uses to help keep its overnight federal funds rate, the main lever of monetary policy, where officials want it to be.
The Fed currently pays deposit-seeking banks 4.9% to park cash at the central bank, in turn setting the high end of the interest rate range.
The Fed’s reverse repo facility has seen massive inflows of cash since the spring of 2021, and since June, eligible firms, which are mainly money market funds, have parked at least $2 trillion per day at the Fed.
The surge of interest has been tied to the reserve repo facility generally offering a better rate than private money market investments, making it safer and easier to park money at the central bank.
Fed officials have long argued that as they raise rates and normalize monetary policy, they expect money to drain out of the reverse repo facility.
But that has yet to happen in any meaningful way, and on Tuesday the tool took in $2.275 trillion.
**************
Reuters
“Fed emergency lending to banks ticks up modestly in latest week”
By Michael S. Derby
April 27, 2023
The central bank said that borrowing through three programs aimed at ensuring banks have the liquidity they need rose to $325.6 billion as of Wednesday, from $316.5 billion on April 19.
Most of the Fed lending continued to come through credit extended to Federal Deposit Insurance Corporation efforts to wind down troubled banks, which fell to $170.4 billion on Wednesday, from the prior week’s $172.6 billion.
But borrowing via the discount window ticked up to $73.9 billion from April 19’s $69.9 billion, while credit extended through the Bank Term Funding Program stood at $81.3 billion on Wednesday, from $74 billion the prior Wednesday.
**************
Fox News
“Fallon dings Biden’s confused answers to kids at WH: ‘Might want to take a harder look at that age thing'”
Story by Gabriel Hays
28 April 2023
Another part of Biden’s question and answer session with the kids made headlines when one child managed to stump Biden by asking what the last country he visited outside the United States was.
Having trouble remembering he was in Ireland only days ago, Biden rambled, “The last country I’ve traveled — I’m trying to think the last one I was in — I, I’ve been to 89 — I’ve met with 89 heads of state so far, so, uh — I’m trying to think.”
‘What was the last — Where was the last place I was?”
“It’s hard to keep track.”
“Um, I was …”
Another kid helped him, shouting out, “Ireland!”
“Yeah, you’re right, Ireland,” Biden replied.
“That’s where it was.”
“How’d you know that?”
EVERYTHING associated with the Biden Regime is severely mismanaged:
Reuters
“White House: First Republic was ‘severely mismanaged'”
By Reuters Staff
May 1, 2023
WASHINGTON, May 1 (Reuters) – Decisive actions taken by U.S. regulators to seize First Republic Bank and facilitate its takeover by JPMorgan Chase & Co will protect depositors and ensure the banking system stays stable, White House press secretary Karine Jean-Pierre said on Monday.
Jean-Pierre told reporters that the actions taken by U.S. regulators would also ensure that First Republic, which she said was “severely mismanaged,” would be held accountable.
************************
Yeah, right, KJP:
REUTERS
“US regulators vow to sharpen oversight as SVB, Signature aftershocks reverberate”
By Ann Saphir, Hannah Lang and Chris Prentice
April 28, 2023
April 28 (Reuters) – U.S. regulators on Friday put large banks on notice that tougher oversight is coming, after the Federal Reserve and Federal Deposit Insurance Corporation detailed their supervisory lapses before deposit runs caused the collapse of Silicon Valley Bank and Signature Bank in March.
The Fed’s assessment of its inadequacies in identifying problems and pushing for fixes at Santa Clara, California-based SVB came with promises for tougher supervision and stricter rules for banks.
Separately, the FDIC delivered a 63-page account of its failings in the collapse of Signature, and those of the New York-based lender’s management, to fix persistent weaknesses in liquidity risk management and over-reliance on uninsured deposits.
“In retrospect, the FDIC could have acted sooner and more forcefully to compel the bank’s management and its board to address these deficiencies more quickly and more thoroughly,” it said.
Both reports said the banks’ managers were primarily to blame for prioritizing growth and ignoring basic risks that set the stage for the failures.
And while they both identified supervisory misjudgments – the Fed’s report was particularly scathing – both stopped short of laying the responsibility for the failures at the feet of any specific senior leaders inside their oversight ranks.
“The Federal Reserve’s report lays blame at changes to regulation and supervision made in recent years, when its own examination materials make plain the fundamental misjudgments made by its examination teams over that same period,” Greg Baer, the president and CEO of the Bank Policy Institute, said in a statement.
At SVB, the Fed said, supervisors did not fully appreciate the problems and failed to appropriately escalate certain deficiencies even after they were identified.
At the time of its failure, SVB had 31 unaddressed citations on its safety and soundness, triple what its peers in the banking sector had, the U.S. central bank’s report said, including problems with interest-rate-risk modeling that examiners directed be addressed by June 2023.
Signature’s failure, the FDIC said in its report, was caused by “poor management” and a pursuit of “rapid, unrestrained growth” with little regard for risk management.
And in the meantime as the inevitable happens:
Reuters
“Indexes fall 1% as regional banks tumble, investors fret before Fed”
By Caroline Valetkevitch
May 2, 2023
May 2 (Reuters) – Major U.S. stock indexes fell more than 1% each on Tuesday as regional bank shares tumbled on renewed fears over the financial system and as investors tried to gauge how much longer the Federal Reserve may need to hike interest rates.
The KBW regional banking index fell 5.5% in its biggest daily percentage drop since March 13.
U.S. regional banks extended losses from Monday after the seizure and auction of First Republic Bank.
Most of its assets were bought by JPMorgan Chase & Co in a deal brokered by the Federal Deposit Insurance Corp.
Two other U.S. regional banks collapsed in March.
“There are concerns that this is not over, and that rates are going to (continue to) go up, and it could be a catalyst for more problems,” said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
“There’s more and more talk about problems with commercial real estate,” an area associated with regional banks, she added.
***************************
Reuters
“PacWest, Western Alliance shares tumble as US regional bank fears persist”
By Niket Nishant and Chibuike Oguh
May 2, 2023
May 2 (Reuters) – Shares of U.S. regional banks PacWest Bancorp and Western Alliance Bank plunged on Tuesday as the demise of First Republic Bank triggered investor concerns about the financial health of other mid-sized lenders.
Investors fear the latest turmoil, which began with the failures of Silicon Valley Bank and Signature Bank in March, could spread to other regional banks.
The KBW Regional Banking Index fell 5.52%, hitting its lowest since December 2020.
“If a ‘confidence crisis’ can happen to First Republic, it can happen to any bank in this country,” said Jake Dollarhide, CEO of Longbow Asset Management.
“This is potentially a big deal, which hopefully won’t materialize to anything significant,” he added.
Los Angeles-based PacWest tumbled by more than 27%.
It is ranked 53rd among U.S. lenders with $41.2 billion in assets as of the end of last year, according to Federal Reserve data.
Phoenix, Arizona-based lender Western Alliance, the No. 40 U.S. bank with $68 billion in assets, sank 15% while Cleveland, Ohio-based KeyCorp, the 20th largest bank with $188 billion in assets, fell 9%.
Comerica, a Dallas, Texas-based bank ranked 37th among U.S. lenders with $86 billion in assets, shed 12%.
Columbus, Georgia-based Synovus Financial Corp, with $60 billion in assets and ranked the 42nd U.S. biggest bank, lost nearly 7%.
Valley National Bankcorp, which owns Valley National Bank based in Passaic, New Jersey and is the 43rd largest lender with $57 billion in assets, closed 3% lower after shedding more than 20% on Monday.
The exposure of regional banks to the commercial real estate sector, particularly office buildings that currently have high vacancy rates, has further heightened investor concerns that loan losses could pile up and exacerbate the current crisis amid rising interest rates.
Regional banks with up to $250 billion in assets held about $1.1 trillion of commercial real estate loans with maturities through 2027 as of the end of last year, according to real estate data analytics firm Trepp Inc.
“There could be some haircuts on office loans and that’s a market where regional banks have a lot of exposure,” Nash said.
***************************
CNBC
“PacWest falls 40% after hours on report bank is weighing sale”
Sarah Min
May 3, 2023
PacWest Bancorp shares tumbled 56% in extended trading on Wednesday following a report that the bank is weighing a sale.
The regional bank has been assessing options, including a breakup or a capital raise, according to a Bloomberg report citing sources familiar.
The shares of many West Coast regional banks have been hit particularly hard since the collapse of Silicon Valley Bank in March, in part because of concerns that their customer bases are similar.
PacWest is based in Los Angeles.
The stock is down 72% this year.
PacWest reported that total deposits declined more than $5 billion in the first quarter to $28.2 billion as of March 31.
Other regional banks declined in extended trading following the report.
The SPDR S&P Regional Banking ETF shed 4.4%, while shares of Western Alliance Bancorp dropped 24%.
This is breaking news. Please check back for updates.
***************************
Reuters
“U.S. regional bank stocks dive after hours as PacWest weighs options”
By Noel Randewich and Medha Singh
May 3, 2023
May 3 (Reuters) – Shares of U.S. regional lenders collapsed in extended trade on Wednesday, with PacWest Bancorp losing over half its value after reports the California bank is exploring strategic options, including a sale.
PacWest sank 60% and Western Alliance Bancorp tumbled 33% as the U.S. regional banking crisis that started two months ago reverberated across the U.S. financial system.
Zion Bancorporation, Comerica and First Horizon each slumped more than 11%, and the SPDR S&P Regional Banking ETF dropped 5%.
The late-day drop in regional bank shares added to losses in Wednesday’s regular trading session, despite reassurances by U.S. Federal Reserve Chair Jerome Powell that the country’s banking system remains resilient.
In a press conference after the Fed announced a much anticipated 25-basis hike in interest rates, Powell said the U.S. banking sector remained sound and resilient despite “strains” in March that led to tighter economic conditions.
The recent regional bank selloff indicates investor unease over their outlook, Brown Brothers Harriman analysts wrote in a note.
The exposure of regional banks to the commercial real estate sector, particularly office buildings, has also sparked investor worries, given rising interest rates.
Biden vows banking system is ‘safe and sound’
Associated Press
https://www.youtube.com/watch?v=ztvTzzBwENk
************************
Reuters
“PacWest stock plunges as US regional banking woes worsen”
By Medha Singh, Chibuike Oguh
May 4, 2023
(Reuters) -Shares of PacWest Bancorp plunged on Thursday, dragging other regional lenders down after the Los Angeles-based bank’s plan to explore strategic options sparked investor worries of a widening financial crisis.
PacWest’s stock slumped more than 40% in afternoon trading, dropping to a record low.
Western Alliance shares pared losses after plummeting by nearly 60% following a Financial Times report that the lender was exploring strategic options, including a potential sale of all or part of its business.
Western Alliance denied the FT report, calling it “categorically false in all respects,” and said it was weighing legal options against the newspaper.
The bank’s stock was down nearly 35% in afternoon trading.
Western Alliance has been seeking to reassure investors about its financial stability.
First Republic’s collapse, the third major casualty of the biggest crisis to hit the U.S. banking sector since 2008, rekindled a slide in shares of regional lenders this week despite regulatory efforts to staunch the turmoil that began with the collapse of Silicon Valley Bank in March.
“Nobody knows where these banks should be trading at because what we saw with Silicon Valley Bank is that the fundamentals can change so quickly,” said Tom Plumb, portfolio manager at Plumb Balanced Fund in Madison, Wisconsin.
“This normally would have been a great opportunity to buy banks with premier regional presence and it may be, but the real concern is nobody knows what the rules are and what they are valued at,” Plumb added.
Zion Bancorp shed 12% and Comerica fell nearly 11%.
KeyCorp and Valley National Bancorp were down 7% and 4%, respectively.
The KBW Regional Banking index dropped 3.3%.
Major U.S. banks were also losing ground on Thursday, with the S&P 500 Banks index falling nearly 3%.
JPMorgan’s shares fell 1.4%, while Bank of America declined 3%.
The common theme among the banking stocks that have sold off sharply is that they reported large deposit declines in the first quarter, said Truist Securities analyst Brandon King, while calling the selloff “overdone.”
PacWest Bancorp reported a loss of $1.1 billion attributed to shareholders for the first quarter of the year.
Its shares have lost 72% of their value this year, making it one of the worst performers on the small-cap S&P 600 regional banks index, which has lost a third of its value in the same period.