Battle for Deposits: Tired of Getting Screwed by Banks, People Yank their Cash Out, Forcing Banks to Pay Higher Interest Rates. Treasury Yields Are a Mess Though by Wolf Richter • Mar 27, 2023 • 197 Comments That’s how it should have been all along. But the Fed’s interest rate repression killed competition for deposits.
FDIC Sells Much of Silicon Valley Bank to First-Citizens Bank. Total Cost of SVB Collapse to Deposit Insurance Fund: $20 Bn by Wolf Richter • Mar 27, 2023 • 144 Comments Even collapsed banks have lots of assets that the FDIC sells to cover the costs to the Fund. Signature Bank collapse costs the Fund only $2.5 billion
My Company Ended Up with Some Exposure to Silicon Valley Bank: I Warned about Monogamy’s Downside Years Ago by John McNellis • Mar 26, 2023 • 55 Comments In 2011, I published an essay on the need for multiple banking relationships that hits the SVB coffin nail on the head.
Free Money Turned Brains to Mush, Now Some Banks Fail by Wolf Richter • Mar 25, 2023 • 177 Comments The Fed’s rate hikes and QT didn’t break anything except consensual hallucination.
The Fed Should Be Fired as Bank Regulator. Powell’s Discussion of Silicon Valley Bank & Regulatory Failure Shows Why by Wolf Richter • Mar 24, 2023 • 189 Comments The Fed is structurally too conflicted to regulate banks. The FDIC is not, but it needs tiger teeth to bite CEOs’ heads off.
Update on the Fed’s Liquidity Support for Banks by Wolf Richter • Mar 23, 2023 • 127 Comments Was it the Swiss National Bank that Borrowed $60 Billion via “Foreign Official” Repos for the Credit Suisse takeunder?
Total Wipeout of $17 billion in Credit Suisse AT1 CoCo Bonds Shocked Because No One Reads Clauses Anymore? by Wolf Richter • Mar 20, 2023 • 193 Comments We’re not even getting peanuts? EU regulators came out and said, no, no, no, that’s just in Switzerland, not in the EU.
THE WOLF STREET REPORT: Free Money Turned Brains to Mush. Now Some Banks Fail by Wolf Richter • Mar 19, 2023 • 208 Comments The Fed ended Free Money, and the only thing it broke is the consensual hallucination that spawned during the Free Money era. And look what we got.
After Huge Plunge, Treasury Yields Are Due for a Big Bounce on Monday. Here’s Why by Wolf Richter • Mar 18, 2023 • 269 Comments What we saw on Friday was large-scale fear of taking big uninsured deposits into a potentially gruesome FDIC weekend.
Fed Loaned $160 Billion to Banks and $142 billion to FDIC. But QT-Related Roll-off Continued by Wolf Richter • Mar 16, 2023 • 281 Comments At around 4.75%, plus collateral, these are expensive loans for banks.
