How they can survive ? I do not think so, when you look at the stock price. It is already -80% down within a month. I think that bank is also history, but who will rescue them ? And what happens next ? https://www.cnbc.com/2023/03/20/first-republic-falls-sp-credit-rating-downgrade.html MARKETS First Republic shares are sliding again Monday after a credit rating downgrade PUBLISHED MON, MAR 20 20236:36 AM EDT John Melloy@JOHNMELLOY SHARE KEY POINTS S&P cut its credit rating to B+ from BB+ on Sunday after first lowering it to junk status just last week. The rating remains on CreditWatch Negative, said S&P. First Republic shares are down sharply this month as the collapse of Silicon Valley Bank caused investors to rethink other banks with large uninsured deposit bases. In this article FRC-4.25 (-18.45%) KRE+0.29 (+0.68%) A trader works at the post where First Republic Bank stock is traded on the floor of the New York Stock Exchange (NYSE) in New York City, March 16, 2023. Brendan McDermid | Reuters Shares of First Republic Bank, which have become the barometer of the regional bank crisis, slid once again Monday after Standard & Poor’s cut the credit rating of the San Francisco-based institution. S&P cut its credit rating to B+ from BB+ on Sunday after first lowering it to junk status just last week. The rating remains on CreditWatch Negative, said S&P. The stock fell 15% in premarket trading Monday, adding to a decline of more than 80% already this month that came as the collapse of Silicon Valley Bank caused investors to rethink other banks with large uninsured deposit bases. First Republic Bank RT Quote | Last NASDAQ LS, VOL From CTA | USD After Hours: Last | 7:00 AM EDT 18.78-4.25 (-18.45%) 23.03-11.24 (-32.80%) Close Despite First Republic’s decline, the SPDR S&P Regional Banking ETF was slightly higher Monday, up 0.2% in premarket trading. On Thursday, a group of major banks agreed to deposit $30 billion in First Republic to shore up confidence in regional banks. But the bank also suspended its dividend and said it had just about $34 billion in cash through March 15, not counting the new deposits. “The deposit infusion from 11 U.S. banks, the company’s disclosure that borrowings from the Fed range from $20 billion to $109 billion and borrowings from the Federal Home Loan Bank (FHLB) increased by $10 billion, and the suspension of its common stock dividend collectively lead us to the view that the bank was likely under high liquidity stress with substantial deposit outflows over the past week,” stated S&P in its note Sunday. UBS bought Credit Suisse over the weekend in a forced tie-up facilitated by Swiss regulators to stop the banking crisis from spreading globally. Credit Suisse executives noted that the U.S. regional bank crisis caused enough instability that forced the already shaky institution to merge with its rival. https://www.cnbc.com/2023/03/19/sp-...-billion-infusion-may-not-solve-problems.html
The next one after First Republic should be the smaller PACW when you look at the stock price development recently. https://finviz.com/quote.ashx?t=PACW&ty=c&p=d&b=1 https://www.pacwestbancorp.com/news-market-data/news/default.aspx When I read this below it should not go bankrupt, but who knows nowadays.... https://www.pacwestbancorp.com/news...n-Bank-Issues-End-of-Week-Update/default.aspx
The only way to stem the tide in these flailing banks is to guarantee all deposits to infinity forever. Not very palatable but that would shore up confidence.
https://www.cnbc.com/2023/03/20/nel...ould-insure-all-bank-depositsfor-a-price.html MARKETS Hedge fund manager Nelson Peltz says the government should insure all bank deposits — for a price PUBLISHED MON, MAR 20 202311:54 AM EDT Jesse Pound@JESSERPOUND SHARE KEY POINTS The Trian founding partner told CNBC that he has talked to elected officials about expanding the deposit insurance program that is currently capped at $250,000 per account. The change would involve paying insurance premiums to the Federal Reserve. “You would have money flowing in here from all over the world. People would feel safe,” Peltz said. Nelson Peltz Cameron Costa | CNBC The federal government should expand its guarantee to all bank deposits regardless of size in order to slow bank runs, but it should charge customers for that insurance, hedge fund manager Nelson Peltz said Monday. The Trian Fund Management founding partner told CNBC that customers pulling money out of smaller banks is a “dangerous situation” and that he has talked to elected officials about expanding the deposit insurance program that is currently capped at $250,000 per account. The change would involve paying insurance premiums to the Federal Reserve. “I would put together a plan that applies only to U.S. banks in that the Fed gets an insurance premium for any money you leave in a U.S.-accredited bank over $250,000. So you’re creating income for the Fed, and in exchange for that they insure the overage,” Peltz said on CNBC’s “Squawk on the Street.” WATCH NOW VIDEO04:20 Money is leaving small banks and that’s a very dangerous situation, says Trian’s Nelson Peltz Peltz’s idea comes in the aftermath of massive deposit outflows from U.S. regional banks in recent weeks. The failure of Silicon Valley Bank appeared to be caused by a bank run after customers with large accounts noticed issues with the bank’s balance sheet. Banks have been tapping the Fed’s crisis lending programs to handle those outflows. The additional insurance premium would, for example, could come out of the CD interest payments on large deposits, Peltz said. He added that he thinks it would be better if the fees were consciously paid by the consumers rather than just being built into the interest rates by banks. There could also be limits for how much deposits certain banks could take. “You would have money flowing in here from all over the world. People would feel safe,” Peltz said. Federal regulators did step in and guarantee uninsured deposits at SVB and Signature Bank after they failed earlier this month, though federal officials have said that protection does not extend to other banks. Peltz argued that this implicit guarantee for deposits should be made official. “They do it anyway. Let’s create some income for them, let’s have the system smoothed out and give people peace of mind,” Peltz said. The hedge fund manager is not the only person calling for raising the insurance threshold. Former Goldman Sachs executive and Trump administration advisor Gary Cohn said on CBS’s “Face the Nation” on Sunday that regulators should consider raising the the insurance cap dramatically and implementing a tiered pricing system to pay for it. Regional bank stocks were largely rebounding on Monday, though First Republic was still under pressure despite receiving $30 billion in deposits from other banks. Peltz said it was important to make changes to the deposit insurance program even if the current situation stabilizes. “The peak of the panic is probably behind us, but that doesn’t stop the next one from coming,” Peltz said. --------
https://finviz.com/quote.ashx?t=WAL&ty=c&p=d&b=1 Mid sized regional bank that could go bankrupt soon too, if you look on the stock price chart. https://finviz.com/quote.ashx?t=FFWM&ty=c&p=d&b=1 A smaller regional one, that does not look good, to make this list more complete. So basically after First Republic (probably this week gone or sold) these 3 banks (with PACW) together do look pretty bad. They all are stress tested now. If they do not find any solutions the market will them soon what will happen next here. Those 3 lost more than -50% in 1 month. But there are also a lot of other regional banks that lost more than -30% in 1 month. If they keep loosing....maybe some of them go "OOPS"... https://finviz.com/screener.ashx?v=111&f=ind_banksregional,ta_perf_4w30u&ft=3&o=-marketcap
%% WITH all due respect, not sure an eagle should be the bank symbol?? CA has a bear on its flag Maybe the SPY +XLF will help bail them out ; God knows, the FDIC doesnt need to spend more money. Its a privilege to have FDIC insurance; not sure SVB execs will get to keep thier insider stocks sale profits. Dont know??