General Category > Economy/Business
Republic First seizure signals more bank failures to come
Wingnut:
Bidenomics at work....agin.
Republic First Bank, a regional lender based out of Philadelphia, became the first bank failure of 2024 on Friday when it was shut down by Pennsylvania's bank regulator and the Federal Deposit Insurance Corp. (FDIC) seized control of the operation.
The FDIC quickly made a deal for Fulton Bank to buy Republic First's assets, but one expert on financial regulatory reform and bank failures says the collapse could be a harbinger of things to come.
"This bank failure indicates that additional failures will occur and will range between smaller community banks and larger banks," said Joseph Lynyak, a banking attorney at Dorsey & Whitney, regarding the seizure of Republic First by U.S. regulators.
"The cause is twofold: higher-cost deposits exceeding the yield on low-yield treasury securities and similar investments held by banks, and the deteriorating commercial real estate market and commercial real estate loans," said Lynyak, who specializes in bank receiverships and failures.
https://www.foxbusiness.com/markets/republic-first-seizure-signals-more-bank-failures-to-come-expert-says
catfish1957:
Mid, small caps financials are having to ride out the 3% mortgages they handed out a while back, while.... giving money markets and short term CD's 4-6%. I still think we are about a year away from the big squeeze.
Kamaji:
--- Quote from: catfish1957 on April 30, 2024, 01:36:42 pm ---Mid, small caps financials are having to ride out the 3% mortgages they handed out a while back, while.... giving money markets and short term CD's 4-6%. I still think we are about a year away from the big squeeze.
--- End quote ---
:thumbsup:
Wingnut:
--- Quote from: catfish1957 on April 30, 2024, 01:36:42 pm ---Mid, small caps financials are having to ride out the 3% mortgages they handed out a while back, while.... giving money markets and short term CD's 4-6%. I still think we are about a year away from the big squeeze.
--- End quote ---
IIRC that was part of what killed the WAMU banks in the Obama crash of 07-08. They needed cash because the Housing market cash in CA where they wrote most of their real estate mgts. so they offered 6 and 7% CD's. I jumped on those like Hunter biden on a 10 dollar whore.
catfish1957:
--- Quote from: Wingnut on April 30, 2024, 01:45:49 pm ---IIRC that was part of what killed the WAMU banks in the Obama crash of 07-08. They needed cash because the Housing market cash in CA where they wrote most of their real estate mgts. so they offered 6 and 7% CD's. I jumped on those like Hunter biden on a 10 dollar whore.
--- End quote ---
Ohhh yeah... and i really scooped up some good stocks in '09. With now, and where we stand on every fiscal foothold, we might be witnessing the bubble of all bubbles. There are no historic fundementals which even remotely support a 40K DOW.
My fear is that it might be a lot worse than a 50% correction, and we head into either (1) a '30's or '70's like aversion to the market, (2) The U.S. Fed/Government keeps feeding the monster, and the hyperinflation machine starts in earnest. I think the recent and ongoing Gold run up, at least right now makes me fear the latter. But a lot can change before now and when the Crash happens.
One of those heads I win, tails you lose scenarios.
Navigation
[0] Message Index
[#] Next page
Go to full version