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]

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. 

[Wingnut]

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.

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]

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.

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.

[DefiantMassRINO]

Another domino has fallen.

Gold Prices are another canary in the coal mine:

[catfish1957]

Another domino has fallen.

Gold Prices are another canary in the coal mine:

Charles Payne had a gold hawk guest a couple of shows ago, that has their estimates at $3K by year end.   If that happens, we basically without internal currency cailbration, will have lost 75% of $USD evaluation, if and when you realize that Au is a fixed value, and currencies basically float accordingly.

This can perpetuate, as long as the rest of the world continues to buy into the $USD as reference currency.  Problem is....  There will be a point when the rest of the world gets fed up with poor U.S. fiscal policy, and an alternative is secured.  Au? BRICS?, etc.
When the $USD is shot down, saying it is going to get ugly will be a massive understatement. 

[banddag]

IIRC that was part of what killed the WAMU banks in the Obama crash of 07-08. 

Talk about revisionist history. Obama did not take office until Jan 20 2009.  The housing crash was building up all during 2000-2008. There was warning as early as 2005 regarding the subprime loans.

[catfish1957]

Talk about revisionist history. Obama did not take office until Jan 20 2009.  The housing crash was building up all during 2000-2008. There was warning as early as 2005 regarding the subprime loans.

Gonna blame Bush for QE1, 2, 3, and 4 too?

Please don't yourself ID yourself here as a conservative anymore.  No one beleives you.

[banddag]

Gonna blame Bush for QE1, 2, 3, and 4 too?

Please don't yourself ID yourself here as a conservative anymore.  No one beleives you.

What he said was total BS and I will call him out on it. Lehman bros collapsed September 2008- way before the election. Obama had NOTHING to do with any of it.

[banddag]

Gonna blame Bush for QE1, 2, 3, and 4 too?

No, but there was plenty of warning signals as early as 2004/2005 the housing market was heading into a terrible bubble burst. My dad built spec homes. I told him to stop building/be ultra cautious  around that time

[LMAO]

No, but there was plenty of warning signals as early as 2004/2005 the housing market was heading into a terrible bubble burst.

And John McCain was one of those warning about that.

I have no idea why he didn’t run on that in 2008 instead of “bipartisanship”