Shares in America's First Republic Bank's crashed when the New York stock market opened for trading this morning. The crash was triggered by a statement issued on Sunday night that sought to ease investor worries about the bank's liquidity situation in the wake of the failure of Silicon Valley Bank. Shares in the San Francisco based regional bank are down 60% on last week's close.
In the Sunday night statement the bank claimed that it had more than $70 billion in unused liquidity to fund operations from agreements that included the Federal Reserve and JPMorgan Chase & Co.
"The additional borrowing capacity from the Federal Reserve, continued access to funding through the Federal Home Loan Bank, and ability to access additional financing through JPMorgan Chase & Co.increases, diversifies, and further strengthens First Republic's existing liquidity profile," the bank said, adding that more liquidity is available through the Fed's new lending facility.Unfortunately this information, coming only days after Silicon Valley Bank had issued similar assurances shortly before being declared insolvent, failed to assure investors and depositors.
Bloomberg's Ven Ram opined, "The plunge in its shares is classic market psychology at work, with investors starting to question the credentials of any lender that may be remotely in the same category of Silicon Valley Bank," .
Zero Hedgepointed out over the weekend, "as a result of the SVB failure - one look at what is already taking place at some smaller, vulnerable banks such as this First Republic Branch in Brentwood should be sufficient to see what comes to morrow if the Fed makes the wrong decision today."
Despite the emergency lending program announced by the Fed and Treasury on Sunday to increase the availability of funds to meet bank withdrawals and prevent runs on other banks, fears have not been alleviated as other regional banks, which are sitting on some $620 billion in unrealized losses on all securities (both Available for Sale and Held to Maturity) at the end of last year, according to the Federal Deposit Insurance Corp," continue to experience significant pressure."
How was this allowed to happen? I worked in a British financial institution and do not claim great expertise in the American way of doing things but one flaw in U.S. corporate law allows companies to skew their balance sheet with outmoded accounting methods which maintain asset values at the original level rather than using the more modern, (and better suited to current financial volatility,) mark to market, in which market values current at the closing of an accounting period are used. Thus a company may claim $100 billion in assets against only $75 billion in liabilities, but when assets are calculated to market values only have assets with actual worth of $70 billion thus being insolvent.
Britain is Breaking Down; The Economy Is Struggling, Living Standards Are Falling, Institutions Are Failing
Successive governments have brought Britain to its knees.This article will focus on Britain as representative of the general malaise that is afflicting almost all the developed world. Our current crop of politicians have discarded the resources that brought the country out of the post war decline ... In spite of being rich in energy resources Britain is now in an energy crisis, our leaders have sacrificed prosperity on the altar of Net Zero, committing the nation to our reducing our 1% contribution to harmful emissions still further ...
"Revolution Has Begun": 75,000 Brits Plan To Stop Paying Power Bills In Protest At Energy Rip Off
Resistance is growing to spiralling domestic energy costs in Britain as more than 75,000 irritated people in the UK have pledged not to pay their electricity bill this fall when prices jump again.
If the government & energy companies refuse to act then ordinary people will! Together we can enforce a fair price and affordable energy for all," tweeted "Don't Pay UK," an anonymous group spearheading the effort to have more than one million Brits boycott paying their power bill by Oct. 1.
E U Central Bank Digital Currency Is The Death Rattle Of A Failed Experiment
The announcement from the European Central Bank (ECB) that is is to intrduce an official European Union digital currency spells the end of the European Single Currency experiment and with it the ambition of "ever closer union until the EU's member states were merged into a single political entity Digital Currencies might not quite be Ponzi schemes but on appearances the difference can be compared to that between a horse and a pony.
Negative Interest Rates - Final Nail In The Coffin Of Neoliberalism? Negative interest rates, in plain terms a situation in which we pay bankers for holding our money, are the latest ruse of politicians and economists to make uis start spending our investments and savings, thus kickstarting the global economy thy have screwed up.Magic Money - How The Fractional Reserve Banking System Conjures Money From Fresh Air:
A look at how the fractional reserve banking system works and how it brought the global economy and many people's personal finances close to collapse. It's really all about pulling magic money out of fresh air.
Investors Ignore Triple Dip Regession As Stock Market Hits Four Year High
News that the British economy was staring an unprecedented triple dip recession in the face left investors unperturbed yesterday as shares on Britain's leading index hit their highest point in since the crash four-and-a-half years ago.
Corporate Banker's $1.5 Quadrillion Conspiracy: EU Accuses 13 Banks Of Operating A Derivative Trading Cartel Debt, how much of a threat to ordinary people is it? The truth might frighten you which is why bank bosses, government leaders and media pundits are not eager to tell the truth. What can we do? Not much in the short term, in the long term, reclaim the sovereignty of our nations and our individual sovereignty and tell the world view thinkers their crazy ideas have maxed out their credit.
Globalization and the Retrun To Serfdom
When the power elites promise something that will benefit people everywhere it can be taken what the world will get is the opposite. Thus when we were told globalisation would make everybody more prosperous, abolish poverty and narrow the gap between rich and poor, only a fool would have failed to regognize what was on offer comprised a return to medieval poverty and servitude for the masses while the rich became richer.
Another Reason To Get Out Of EU. UKIP MEP Hits Out At Fishing Policy That Penalises British Fishing Crews
As the General Election campaign starts to heat up, we try to shift focus away from the squabbling between Conservative and Labour about who can make the most promises they have no intention of keeping and to the real issues concerning jobs, social breakdown , mass immigration, and an often overlooked area in which our EU membership has perhaps done more damage than any other, the fishing industry.
De-Dollarization: Russia Ratifies $100 Billion BRICS Bank
A BRICS Bank - as an IMF alternative and to enable nations to become less dependent on the global reserve currency - was originally discussed at The BRICS Summit in 2012. Then at the 2014 BRICS Summit, the framework for The BRICS Bank was approved as "a system of measures that would help prevent the harassment of countries that do not agree with some foreign policy decisions made by the United States and their allies.
Henry Kissinger On The New World Order
OK, let the Politically Correct screechers screech 'conspiracy Theory'. Kissinger has of course been a long time advocate of corporatist global totalitarian government by elitis oligarchs and has himself used the phrase New World Order to describe what he sees as the best hope for the future and what those of us outside his small elitist clique see as fascism
IMF Chief Legarde Arrested? It's DSKja vu All Over Again.
Like her predecessor in the job, Domique Strauss - Khan, IMF Chief Christine Legarde feaces prosecution for criminality and is likely to be forced out of the job. Yet the dodgy episodes in Legarde's past were well known before she was appointed head of the IMF. So who put the kinfe in and why?
Get Ready For The Collapse Of The Global Economy
In the years we have been publishing, Daily Stirrer financial correspondent Phil T Looker has consistently predicted the refusal of the market rigging banksters to acknowledge that the developed worlds debt driven economy was FUBAR might delay the economic catastrophe but that would only make the final collapse worse when it eventually happened.
The Banksters Bullion Heist: How The Gold Market Was Hi Jacked And The Banksters Robbed Us All
The rapid drop in gold prices recently has been said by some to be a sign a new economic crisis is imminent while others say it is a sign economic confidence is returning and the slump is over. It is neither, but rather a demostration of how banksters rig the markets in gold, commodities, currency ans shares, and rob us all.
Washington Signals Fears Over Dollar
Over the past month there have been some bizarre movements in financial marketsthat can only be explained as a conspiracy to protect the US dollar from the inevitable consequences Federal Reserve’s policy of Quantitative Easing (QE) which has been going on since the financial crisis began in 2008.
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