It’s Worse Τhan We Thought! (Preparing For More Bank Failures)

by
Sharing is Caring!

US Regional Bank Stocks 1 Month Into 2024:

1. NY Community Bank, $NYCB: -60%

2. Valley National Bank, $VLY: -25%

3. Metropolitan Bank, $MCB: -15%

4. HarborOne, $HONE: -14%

5. Comerica Bank, $CMA: -13%

6. Zions Bank, $ZION: -12%

7. Western Alliance, $WAL: -11%

8. Citizens Financial, $CFG: -6%

9. KeyCorp, $KEY: -5%

Regional bank worries resurfaced as New York Community bank, which acquired the collapsed Signature Bank, cut their dividend by 70%.

These are the same banks that hold nearly 70% of commercial real estate loans.

Just 10 months ago, the regional bank crisis “ended.”

See also  Five days ago, Joe Biden told his donors, "It's time to put Trump in the bullseye."

New York Community Bancorp Cut To ‘Junk’ By Moody’s: 33% Of Deposits Uninsured
Having seen the share price collapse to its lowest since 1997, following the regional lender’s reporting of a surprising (and large) loss for Q4 and slashing its dividend (to 5c vs 17c exp), ratings agency Moody’s has cut all long-term and some short-term ratings of New York Community Bancorp to ‘junk’ (Ba2 from Baa3).

See also  If you thought COVID was bad, wait till you hear what’s brewing with bird flu

The total amount of public bonds & loans outstanding affected by this downgrade is $1.14 billion, according to data compiled by Bloomberg.

 

Over $ 650 billion in unrealized losses on US Treasuries.

Over $ 1 trillion outflow in deposits going to Money Market Funds.

Many Banks not Basel 3 compliant. Need to up their capital reserves which they don’t have.

Record car repos happening.

Personal and Corporate bankruptcies rising fast.

Mortgage origination off 50 % from 2020.

Commercial Real Estate market is imploding.

Huge book of Low interest rate loans.

Everything points to a meltdown of the banking sector.

 

Views: 481

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.