Bank Crash

This all feels very political. At least the main line of conversation.

Quote: drmario

I thought ChumpChange’s posts were annoying in this thread, then AZ joined the chat
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People pointing out reality is annoying to you?

RT: SNB giving CS $54BN to replenish deposits just hours before ECB hikes rates making it even more difficult for CS to keep deposits.
Only in Europe.
ECB HIKES 50bps

Bailout Arrives: Credit Suisse To Borrow $54BN From SNB To "Pre-emptively Strengthen Liquidity" | ZeroHedge
https://www.zerohedge.com/markets/credit-suisse-sparks-global-de-risking-after-top-investor-bails

Credit Suisse Group takes decisive action to pre-emptively strengthen liquidity and announces public tender offers for debt securities
https://www.credit-suisse.com/about-us-news/en/articles/media-releases/csg-announcement-202303.html

RT: This is a last ditch liquidity infusion. All it does is prevent forced asset liquidations (a la SVB). Meanwhile it does nothing to halt the depositor flight.
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RT: First Republic Bank Is Said to Weigh Options Including a Sale
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RT: FDIC Demands Signature Bank Buyers Stop All Crypto Business:
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RT: JP MORGAN: FEDERAL RESERVE’S EMERGENCY LOAN PROGRAM MAY INJECT AS MUCH AS $2 TRILLION OF FUNDS INTO THE US BANKING SYSTEM AND EASE THE LIQUIDITY CRUNCH
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RT: ARGENTINA CENTRAL BANK LIFTS BENCHMARK RATE TO 78%
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RT: *JPMORGAN, CITI, OTHERS TO DEPOSIT $30B WITH FIRST REPUBLIC

If you look back bank failures seem to come in groups about every 15 or 20 years and what usually happens is they get snapped up by the bigger banks which become even bigger. Which leads to even more regulations. Scott Adams the creator of Dilbert was in the banking business for years and he says it's rampant with incompetence with people who don't know what they're doing especially in the smaller banks. They tend to overlook really obvious things that are wrong or ignore them completely when they do find them.

Quote: EvenBob

Scott Adams the creator of Dilbert was in the banking business for years and he says it's rampant with incompetence with people who don't know what they're doing especially in the smaller banks.

Sadly, incompetence is a trait of the majority in the U.S.

Quote: EvenBob

If you look back bank failures seem to come in groups about every 15 or 20 years and what usually happens is they get snapped up by the bigger banks which become even bigger. Which leads to even more regulations. Scott Adams the creator of Dilbert was in the banking business for years and he says it's rampant with incompetence with people who don't know what they're doing especially in the smaller banks. They tend to overlook really obvious things that are wrong or ignore them completely when they do find them.
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Watch "Rogue Trader" a true story of the biggest martingale bet ever. Kid brought down a hundreds year old bank. To this day he blames their incompetence not noticing it all. They were just in it for the profit.

One place I worked at just cared about speed-speed-speed. Forget about good underwriting, get it done fast. Another just cared that we cross-sold products. And referred people online. I had one of the highest sales on the floor. Guy next to me asks why. I said because I take the application. If a customer is in front of you then you lock them in, not tell them to go apply online. Another place I went for a HELOC they told me "look online" as the people there didn't know the product. I looked online---with another bank!

The thing now is you cannot grow small to big in less than a few generations. You have to merge. WaMu was the last to try to grow big organically. They put everyone into NegAm mortgages showing low "option" payments. Now, this was a product good for maybe 2% of the population who know how to use them. It killed them.

Quote: DRich

Quote: EvenBob

Scott Adams the creator of Dilbert was in the banking business for years and he says it's rampant with incompetence with people who don't know what they're doing especially in the smaller banks.

Sadly, incompetence is a trait of the majority in the U.S.
link to original post

You say that as if it is a bad thing.

Quote: DRich

Quote: EvenBob

Scott Adams the creator of Dilbert was in the banking business for years and he says it's rampant with incompetence with people who don't know what they're doing especially in the smaller banks.

Sadly, incompetence is a trait of the majority in the U.S.
link to original post

It is always been a trait for most of the world since the dawn of time. Incompetence is always the easiest road to take so it's the road that most people choose. You can go into any huge corporation and maybe find two or three people that are completely competent and the rest just don't care enough. It's always been that way. Artificial Intelligence is going to change a lot of that and we won't be able to keep up so it will eventually take over almost everything.

UBS deal to buy Credit Suisse

"Mr. Hamers, this is the contract for UBS to buy Credit Susie. Either your signature or your brains will be on it before we leave the room. You may call Mr. Dimon to ask about us if you do not know who we are........"