The Commercial Real Estate/Small Bank Boogie! CRE Crisis Could Cause Small Banks To Collapse (Bank Credit Growth Now Negative As 10Y-2Y Yield Curve Remains Inverted)

by confoundedinterest17 We are back in the USSR! And the economy taking commands from Washington DC! Introduction During the COVID-19 pandemic the occurrence of remote work jumped, out of sheer necessity. The technology was already available, but the pandemic accelerated its adoption and bypassed the hesitation of employers to allow people working from home. In many cases, …

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Regional banks could be the source of a US banking catastrophe

Keep an eye on regional banks. If something is going to break in the U.S. that’s where it will be. https://twitter.com/multi_finance/status/1689836136943009792 These charts are saying we're early and only 3 weeks away 👀 https://t.co/VmxG6W0a21 pic.twitter.com/OPR0D6KClY — Financelot (@FinanceLancelot) August 11, 2023 Gamma Exposure (GEX) has peaked and fallen away indicating the next rally should be …

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DOWNGRADES and WARNINGS: Moody’s Outlook on 27 American Banks

via theorganicprepper: Right on the heels of seeing a downgrade of the creditworthiness of the United States itself, Moody’s has downgraded ten small to medium banks across the country, citing “financial strain” and “strains that could erode their profitability.” Six more banks are under review, and another eleven have been shifted from “stable” to negative. …

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Fed raises interest rates, bails out banks, ultra-rich, deepening middle class’s borrowing needs to combat inflation.

The longer the Fed keeps raising interest rates while using their balance sheet to bail out banks and the ultra wealthy, the more deeply buried the middle class becomes trying to borrow their way through inflation. Personal interest payments: pic.twitter.com/UdeKfTTszD — Mac10 (@SuburbanDrone) August 10, 2023 US Core CPI is still at a staggering 4.7% …

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Smaller Banks Grapple with Challenges as Borrowers Struggle to Repay Debts

by bitkogan Alarming U.S Financial Stats of 2023: – Debt at record high – Interest expense on debt to reach record high– Credit card debt at record high – Average interest rate on credit cards at record high– Average monthly payment for new car at record high– Housing prices near… — Genevieve Roch-Decter, CFA (@GRDecter) August 9, 2023 WeWork …

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MOODY’S DOWNGRADES 10 U.S. BANKS, WARNS OF POSSIBLE CUTS TO OTHERS.

Moody’s cuts US banks due to rising funding costs and Rising risk tied to Commercial Real Estate (CRE) loans Moody’s Investors Service hs lowered credit ratings for 10 small and midsize US banks and said it may downgrade major lenders including U.S. Bancorp, Bank of New York Mellon Corp., State Street Corp., and Truist Financial …

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Self made crisis: “Italy surprises markets with the announcement of a 40% ‘windfall’ tax on banks”

Italy intentionally causing a banking crisis? 🤨 "Italy surprises markets with the announcement of a 40% 'windfall' tax on banks" pic.twitter.com/HGycE4y8ud — Financelot (@FinanceLancelot) August 8, 2023 ⚠️ 𝗜𝗧𝗔𝗟𝗜𝗔𝗡 𝗕𝗔𝗡𝗞𝗦 𝗚𝗘𝗧𝗧𝗜𝗡𝗚 𝗣𝗨𝗠𝗠𝗘𝗟𝗟𝗘𝗗 Full Story → https://t.co/XK4Cljl110 An index of euro zone banks .SX7E fell as much as 3.4% on Tuesday, after Italy approved a 40% …

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Chase Bank Is In BIG Trouble, Pull Your Money Out Of All Banks

https://www.youtube.com/watch?v=dRLnzWk9N5g In recent times, an alarming trend has emerged – a run on Chase Bank. Customers have been rushing to withdraw their funds, resulting in an astonishing $200 billion worth of deposits being pulled out. This significant loss in deposits is a clear indication that people are growing increasingly concerned about the stability of the …

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Liquidity is flowing out of banks paying piddly .15% interest on accounts, as yield seekers flock into money markets & other higher-yielding financial instruments. Cue worsening liquidity crisis at local and regional banks in 3-2-1…

Assets in money market funds have hit a record $5.5 trillion. With yields above 5%, this trend should continue. pic.twitter.com/gpRrtgBjoL — Charlie Bilello (@charliebilello) August 3, 2023 Bear Stearns Collapse March 16, 2008Lehman Brothers Collapse September 15, 2008 Silicon Valley Bank Collapse March 10, 2023******************* Collapse September 15, 2023 🤫pic.twitter.com/kfdPWKxt1dhttps://t.co/qBMYgTkITR https://t.co/VqtC8XyGSu — Financelot (@FinanceLancelot) August …

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High interest rates drive people to money market funds, reducing banks’ lending capacity and increasing caution

People are moving money from banks to money market funds due to high interest rates This means banks will have less money to lend and they will be more careful with who they lend to pic.twitter.com/jmdzNAqR56 — Bravos Research (@bravosresearch) August 4, 2023 Capital Economics predicts 40% decline in commercial real estate values. Commercial real …

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Global credit downgrades have gone up while banks have been making it harder to get loans

Businesses' ability to pay back credit has been getting worse Global credit downgrades have gone up while banks have been making it harder to get loans pic.twitter.com/HHO0eNTsva — Bravos Research (@bravosresearch) August 1, 2023 Beware: Interest rates are now at levels seen during the peak of the 2007/2008 Financial Crisis pic.twitter.com/MPaduAwnRX — Bravos Research (@bravosresearch) …

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Banks are in PAIN! Half of US banks with $11 trillion assets have lower assets value compared to debt liabilities, $2.2 trillion lower than book-value.

by Dismal-Jellyfish If half of uninsured depositors decide to withdraw, the losses due to CRE distress would result in up to 58 smaller regional banks becoming insolvent in addition to 186 banks that would become insolvent just due to higher rates. Wut Mean?: The U.S. banking system’s market value of assets is about $2.2 trillion …

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Federal Reserve Alert! July 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices. Banks plan to further tighten lending standards across all loan types. Why? Expected decline in collateral value, Anticipated decrease in credit quality, Predicted liquidity challenges, & Deposit Outflows.

by Dismal-Jellyfish Table 1 (PDF) | Table 2 (PDF) | Charts (PDF) Wut Mean?: Commercial and Industrial (C&I) Lending: Banks tightened standards for C&I loans to businesses of all sizes. All loan terms for C&I loans, like rate spreads, premiums on riskier loans, credit line costs, and many others, were tightened. Both large and other banks tightened C&I lending …

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Federal Reserve Alert! The Fed announces the individual capital requirements for all large banks, effective on October 1. The minimum capital requirement is 4.5 percent; The stress capital buffer requirement is at least 2.5 percent. Buckle up!

by Dismal-Jellyfish Source: https://www.federalreserve.gov/publications/files/large-bank-capital-requirements-20230727.pdf Wut mean?: Following its stress test earlier this year, the Federal Reserve Board today announced the individual capital requirements for all large banks, effective on October 1. Large bank capital requirements are in part determined by the Board’s stress test results, which provide a risk-sensitive and forward-looking assessment of capital needs. The …

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Regulators just unveiled new proposed regulations for banks with more than $100 billion in assets

Regulators just unveiled new proposed regulations for banks with more than $100 billion in assets Big banks would need to maintain more capital to protect against losses in lending, trading, and derivatives. Do you think big banks need to be regulated more closely? — Genevieve Roch-Decter, CFA (@GRDecter) July 27, 2023 pic.twitter.com/ilL6hX9DzN — Genevieve Roch-Decter, …

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