The financial landscape is shifting as Barclays unveils a $1.25 billion cost-cutting plan with potential job cuts, contributing to a 26% share price drop under the current CEO. Deutsche Bank remains flat, while HSBC sees a 37% increase. The finance and tech sectors have witnessed over 20,000 job layoffs this year, challenging the traditional notion of a robust job market amid an unsettling economic backdrop. As liquidity concerns emerge, particularly in UBS with assets totaling $1.645 trillion, questions about the banking system’s stability and transparency come to the forefront.
We keep seeing layoffs in businesses like finance and tech that typically provide high compensation and benefits to employees — another reason (among many) why the unemployment rate's historically low level might not tell a completely accurate story about the economy.
— David Sommers (@dgsommersmkts) November 24, 2023
The only facilities that indicate liquidity shortages at banks that have access are REPO, FHLB, BTFP & OCE
RRP does NOT measure liquidity in the banking system. It measures excess liquidity in Money Market Funds, which has been steadily declining as it moves back into Treasuries t.co/4TsR4N7ol6 pic.twitter.com/VwPQLpGCDG
— Financelot (@FinanceLancelot) November 25, 2023
During the pandemic, banks had a massive inflow of new deposits arising from the various stimulus programs, so they did the easiest thing with the money which was buy long-term bonds.
Since interest rates have exploded higher, those bond portfolio values have collapsed, leaving… pic.twitter.com/9X6EqHdxGU
— Wall Street Silver (@WallStreetSilv) November 24, 2023
So who bails out UBS when UBS is 3x the size of Credit Suisse?
Also why do they want a private lender?
What are they trying to hide on the books by keeping it private? 🤔
Credit Suisse total assets $550 billion
UBS total assets $1.645 trillion t.co/8ixjQOPmoZ
— Financelot (@FinanceLancelot) November 24, 2023
Reverse repo plunged to $865BN, down $65BN in one day, in one of the biggest liquidity injections in RRP history.
Also, fast approaching the $700BN reverse repo liquidity constraint level
— zerohedge (@zerohedge) November 24, 2023
Biden, Congress, and The Federal Reserve are increasingly disconnected from the struggles of America’s middle class. The Federal Reserve, a private entity, has the unique ability to pass its massive unrealized losses, now exceeding $1.3 trillion, onto the U.S. Treasury. This situation highlights the Fed’s controversial role in interest rate manipulation and its impact on the national economy. Additionally, FDIC-insured banks are facing significant losses, further exacerbated by negative bank credit growth for 16 consecutive weeks. These developments call into question the current financial policies and the very existence of the Federal Reserve in its current form.