First Republic was reduced to junk status and mid-size banks are now in jeopardy. Too big to fail Credit Suisse begged and will receive help from the Swiss National Bank, and European banks are sinking on the news of the US banking crisis.
No one knows for certain how this banking crisis will go, but a hint might be found in the wars the administration wants to start, the promise of a universal bailout that Biden says isn’t a bailout, and the $7T budget he wants to spend us into more inflation.
MOODYS DOWNGRADES THE ENTIRE SEGMENT
Moodys downgraded the entire US banking system to negative and put six banks on the downgrade list. They cited a ”rapidly deteriorating operating environment” despite regulators’ efforts to shore up the industry.
CNBC reported:
“We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,” Moody’s said in a report.
Trading in more than 30 banks was halted after the collapse of SVB.
Many are worried the bank failures are to lead us into the Central Bank Digital Currency. One of the solutions currently being explored by the Federal Reserve includes Central Bank Digital Currencies or CBDCs. Sixteen countries have implemented CBDC and 100 more are exploring it. The World Economic Forum supports CBDC.
CBDC is the end of our freedom.
THE SYSTEM IS BREAKING DOWN
Carl Icahn said the economy is breaking because of inflation (Biden regime’s policies) and poor corporate leadership.
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“The system is breaking down, and we absolutely have a major problem in our economy today,” Icahn said on CNBC’s “Closing Bell” Tuesday. “One of the worst countries in the world as far as corporate governance.”
You mean “WOKE” and wild investing dosn’t work?
According to the Claremont Institute Center for American Way of Life, Silicon Valley Bank (SVB) gave $73,450,000 to the “BLM Movement & Related Causes.” They funded all those George Floyd riots. They contributed $5 billion to climate change.
FIRST REPUBLIC IS JUNK
S&P downgraded First Republic to junk bond status. As of December 31, First Republic Bank had $176.4 billion in deposits, 68% of which are above the $250,000 FDIC insurance limit, according to Market Watch.
“We believe the risk of deposit outflows is elevated at First Republic Bank despite the actions of federal banking regulators and the bank actively increasing its borrowing availability to mitigate risk associated with the bank failures over the last week,” S&P said in a statement.
“Still, if deposit outflows continue, we expect First Republic would need to rely on its more costly wholesale borrowings. This would encumber its balance sheet and hurt its modest profitability,” said S&P, according to Market Watch.
Fitch Ratings cut the bank’s long-term issuer default rating to ‘BB’ from ‘A-minus, while Moody’s on Monday placed the company on review for a potential downgrade.
First Republic stock fell 21.4% to end trading at $31.16, a new 11-year low. The stock price dropped below the $31.21 hit during the big bank selloff on Monday.
Charles Gasparino said chances of JP Morgan buying First Republic are only at 10%. They would need serious guarantees from Joe Biden.
EXPLANATION OF SVB
The best explanation I’ve found. #Bankcollapse
Hope he’s right. 👀 pic.twitter.com/dOchZ9yqO8— Rie in AZ 🔆 (@RieMcAz) March 15, 2023
CREDIT SUISSE IS TOO BIG TO FAIL
Credit Suisse is in serious trouble but is too big to fail. The Swiss National Bank will provide liquidity if necessary. Saudi Arabia will not help. The regulations alone are too messy
Remember when Biden said he would destroy Russia with sanctions and the West weaponized the financial system? Well, now it is the West’s financial system that could collapse. Russia is spared.
The US banks might survive this, but it could also be an omen.
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