rc0101

We just went through an exam with Federal Reserve and they were almost exclusively looking at our liquidity and investments. Loans were more of a formality, which is a complete 180 from what a typical exam looks like.

Yup they were “healthy” it was just the perfect storm hitting them and lack of proper liquidity management. I need to check to see how much in fed funds they had borrowed and what their tangible common equity was over the past few quarters. It just doesn’t make sense that they didn’t see the risk coming. we have no where near their asset size and we have been monitoring our unrealized losses since last summer and conducting quarterly stress testing. edit - looks like they had $15 billion in fed funds at the end of 2022. Their AOCI was -$1.9 billion. Just for fun look up what Ally Bank is showing for their AOCI, I bet they are getting nervous calls from their regulators and investors.

Depositors are made whole while they unwind their assets. Doing exactly what they should be doing but ya know “bail out” will be parroted everywhere.

You know I think a lot of this could have been avoided if SVB had employed a Chief Risk Officer over the past year or so. A Chief Risk Offer would have/should have done a liquidity stress test when rates were climbing, and were told that rates will continue to climb. Or maybe their examiners or state banking agency could have taken a peak at their portfolio and noticed that they have a rather large concentration in tech. Also, I would argue the flight of deposits to large banks would be more dangerous than it would be to smaller regional and community banks. also, I don’t see any scenario where they wouldn’t be acquired.

Ahh yeah my bad. This thread was really going somewhere before I said the Lions should be in instead.

Not a fan of the Lions

Mhm

Neither do the Hawks.

Lions should have been in over this Seahawks embarrassment

Bought Pentiment for the deck

A WAR reference for someone who deals in War. I appreciate this.

Hopefully she has an adult in her life who cares about her and will do what’s best for her.

Half a point in December and one more 1st Q. Prime at 8 is so wild to me.

So Reyna replaces CP on Saturday I would think. But then Reyna seems to be in the doghouse so Aaronson?

The Moore sub made no sense and then they doubled down and continued to go to his side. English fans were ultra confident before this game and now seeing them scramble is hilarious.

Hey just want to say that my daughter is 13 and has autism. She was basically in the same situation at that age, and is now going into high school with minimal aide help. I know it’s a spectrum but just want to say that therapy absolutely works (you know this) and there is hope.

I was told it would be dead by this morning

Trump going to go hard at Desantis after tonight. Night turned out way better than expected. Zinke winning is a disappointment but not very surprising for me.

Starting Night Flight to Paris by David Gilman

I will say that’s a common move in a takeover. Once you know which executives you will keep, you escort the others out, with as little notice as possible. The security might be a bit much but I’m guessing Elon subscribes to the “fire someone on day one so the others fall in line” approach and wants it to be a spectacle.

Finished it recently as well. My constant thought was: “what a miserable time to be alive”

Maybe he’s one of the lucky ones who is getting out of the U.S? But I’m guessing he’s aging out of the group.

Oh God…Short answer: ask me in 12-24 months long answer based only on my pov in my specific area - good for consumer, bad for community banks and profitable for FI’s structured correctly. Good because I think you are seeing the death signs of overdraft fees, nsf fees etc. Bad - Community banks will continue to disappear, being gobbled up by regional banks and those communities they served will only be a number. Credit Unions will and have been filing that void on the consumer side but it will be interesting to see what they do on the business side. Traditionally the life cycle of a successful business was: Startup with community bank for 5-7 years - succeed and outgrow community bank - move onto larger bank with lower rates since they have a proven history of success and are too large for community bank. Not sure CU’s will fill that void, here they aren’t. Profitable - depends on rates not cratering in the next 12 months, for us anyway.

Yes us bankers are always looking out for the little guy! *Just please don’t take a glance at my loan to deposit ratio or unrealized losses*

Just because fed raises rates doesn’t mean a bank has to raise their deposit rates