Pershing Square’s Bill Ackman has some strong thoughts on the regional banking crisis. Here’s a breakdown of his tweet: 1/ The downward spiral: “At this rate, no regional bank can survive bad news or bad data as a stock price plunge inevitably follows.” 2/ Bank failure potentially coming this weekend: “’Pursuing strategic alternatives means an…Read more
Regional Bank Collapses: Financial History is Being Made, Just Not The Good Kind
Another day, another (several) bank failures in the making. Just days after First Republic’s collapse, PacWest has found itself on the kill list. The regional bank, with ~$44B in assets and 70 branches, mostly in California, is considering strategic options, including selling itself. Slim pickings: “There aren’t many potential buyers interested in the entire bank,”…Read more
Another Bank Failure: RIP First Republic (1985-2023)
First Republic Bank (NYSE:FRC) has dethroned Silicon Valley Bank as the second-largest bank failure in history — becoming the third bank to collapse in under two months. Yesterday, JPMorgan said it was acquiring $92.4B in deposits, $173B in loans and $30B in securities from First Republic (FR). Remembering First Republic Founded in 1985, FR was…Read more
The Economic Downturn is Coming for Credit Card Rewards
Raise your hand if you’ve ever opened a credit card just for the rewards. TAJ: 🙌 But “free” depends on how you manage those cards. In recent years, credit card companies have upped their CC reward game — offering more modern rewards and larger signup bonuses to attract customers. In 2022, six of the largest…Read more
Charles Schwab Is Trading Like It’s About to Explode, Is That Really the Case?
It’s quiet. Too quiet… But one major financial institution is still trading like something’s wrong — Charles Schwab — one of the largest US banks and trading brokerages with $7T+ in assets. Its stock is down ~30% since the start of March — swept into the bank panic in recent weeks. What’s happening with Charles…Read more
Is Warren Buffett About to Save the Banking Sector?
Be “fearful when others are greedy, and greedy when others are fearful.” Do you even invest if you don’t know this quote? The investor who famously said it is back in the spotlight. Warren Buffett is known for saving banks in their time of need: An investment from Buffett is a sign of confidence, and…Read more
UBS Acquires Credit Suisse: The Biggest Event in Banking Since 2008 (So Far)
The global economy has taken its first second third fourth victim. Silvergate Capital — shut down and liquidated. Signature Bank — collapsed and acquired. SVB Financial, parent of Silicon Valley Bank — filed for Chapter 11 bankruptcy. Investors have narrowly escaped what could’ve been two financial disasters — first SVB, and now Credit Suisse. Flashback:…Read more
Could Credit Suisse’s Collapse Trigger a Financial Crisis?
Here’s what market analysts and economists are saying: If something were to happen to Credit Suisse, it “would be an order of magnitude more severe” than SVB and Signature Bank and could become a Lehman moment — per Economist Nouriel Roubini (BBG). “Credit Suisse is not just a Swiss problem but a global one,” and…Read more
Banking Nightmare Continues with Credit Suisse
Another day, another banking crisis. This time, it’s the Swiss investment bank Credit Suisse (NYSE:CS) — the problem child of the financial services sector. Since the ‘07/08 financial crisis, the company has been plagued by scandals, management changes and constant strategy changes. Now, it’s in the middle of another 3-year turnaround plan — which includes…Read more
Jim Cramer vs. Bill Ackman: Two Bullish Calls on Regional Banks… One Poorly Timed
1/ Bill Ackman thinks “regional bank stocks are an incredible bargain now as long as the gov’t does the right thing” (Tweet). “This means that one of the great trades would be to buy regional bank stocks or ETFs here.” “And the massive decline in rates makes this an even better investment now.” Another investor…Read more