Is The Banking Crisis Finally Over?

[@wallstreetmillennial]

Get up to 20 free stocks with a qualifying deposit on moomoo when you sign up with our link: j.moomoo.com/00iPZo

[@crazypasta7749]

Can you make a list of banks that could go down in flame so that we can short these Banks 😂😂

[@jsprowse]

When Jamie Diamond said the banking crisis was over, he didn't mean that the First Republic purchase would end the crisis, he meant that it would set a precedent for how his company would offload losses to the taxpayer while making billions in buying banks on the cheap, for all future bank collapses. Crises averted!

[@CHMichael]

I don't think the situation could have been better explained.

[@Onlyjorge382]

All started with fed reserve inaction calling inflation transitory,acting too little too late and eventually a win for jp Morgan.

[@alexanderSydneyOz]

" he meant that it would set a precedent for how his company would offload losses to the taxpayer" Sadly, the internet is replete with dum fuks saying stupid inaccuracies like this. NO TAXPAYER $ have been used at any point, to assist banks in the USA. ALL costs due to bank failures have been borne by the FDIC, which is funded by imposts on the thousands of member banks. If you, Josh Prowse, are so ignorant of such basic facts, perhaps it is best if you just don't comment, rather than simply parroting the same bs made by other, equally ignorant, people.

[@auraguard0212]

Not the taxpayer; the FDIC is life insurance for banks. It's the banks paying for other banks.

[@milamarshall7842]

The taxpayer paid $0 for the buyout. FDIC is paid for by banks for banks. The only losers were shareholders and bond holders.

[@rogerstone1842]

The Collapse of these banks has torn into global markets , I was really hopeful of my investments this year, but all my plans have been disoriented, I've been studying the banking crisis and I realized some investors made millions from the last market crash and I was wondering if such success rate could be achieved in this present market. Any recommendations?

[@loreleigraham523]

Cryptocurrency crashed the last couple years, so it should be starting a new run to a new high.

[@robertharvel6482]

I feel exceptionally lucky I started investing in my early 40s. I buy quality firms, anticipate to hold them regardless of what happens, pay up but not too much, keep track, sell only when necessary, and be ready to course correct. also ignore the forecasts and market views which are at best entertaining but completely useless. Major thanks to Trisha Jean Webb my F.A...

[@eriktopolsky8531]

It is not over, its only beginning...

[@LizardSpork]

I think the root of the issue is the increasingly pessimistic economic outlook and declining investor confidence. These factors will only increase and so even stable banks may be at the mercy of short-sellers and panic-sellers.

[@GoatMeal365]

Great disclosure at the beginning 👍. Appreciate the transparency

[@Derekzparty]

JPMorgan: First republic is insolvent and should be sold to a much larger bank at an incredible discount. Government: Would you li... JPMorgan: Yes Yes Yes A Thousand Times Yes

[@jonogrimmer6013]

Seems like this will work out great for the few big banks - whilst the smaller banks are taken over by them for vastly undervalued accusations making them more wealthy & reducing any competition.

[@miltondelacruz7033]

You’ve gotten me into money stuff more than anyone else has ever gotten me into it. Thanks for all the insight.

[@jeffsetter213]

How to access the potential for further bank failures while minimizing risk: Long: TFC, FITB or RF Short: KRE Go long the banks w the least potential for failure and short the entire basket of regionals via the KRE ETF. This allows you to partipcate in the downside without having to know which bank or why, just as long as it isn't one of the top 3 performer you took long, those should outperfom the KRE in the event of further failures. Just my 2 cents. Cheers!

[@samsonsoturian6013]

You should be very suspicious when a bank blames a news report on malicious short sellers.

[@yudistiraliem135]

Yep, when the fundamentals are solid, short sellers would just give your investors free monies down the line.

[@sublyme2157]

This was very insightful, thank you. I think a lot of us spread money into various long positions in different banks, knowing full well that some might fail while others would survive and provide great returns in the years to come. The hardest part is not getting scared out of positions.

[@djayjp]

Best analysis I've heard yet, by far.

[@djpuplex]

Bought KRE and planning on hold for quite sometime.

[@prav077]

6:49 why do rate hikes cause a decrease in loak book portfolio? Can some bro explain please?

[@danheiser6458]

Jamie Diamond along with many others should answer for their behavior during the last crisis. The DOJ is not holding any of the accountable. So we all know another crisis is coming. I hope during the next one people are held to the fire.

[@orrbifold]

just beginning

[@AKE_e]

There was a report a few weeks ago that TD Bank was the highest shorted bank. Not sure what ever came of that. I own a lot of TD in my TFSA, my DRIP became more valuable as the SP fell.

[@Tie509]

So far, nothing. TD has the highest exposure to US regional banks out of all the Canadian "big five". That's why it has such high short interest.

[@donnyrosart8714]

TD was able to back out of the First Horizon deal, there were regulatory hurdles that weren't worth even trying to jump over to acquire a bank at what is now well above market value. I don't worry too much about shorting in a case like this. There's a reason the most shorted bank was TD rather than something like First Republic--while it was still in play, First Republic was subject to much wilder swings than a bank like TD, much riskier to short.

[@eskutts]

Nice video. How do these banks plan to turn around their unrealised losses which are in billions?

[@garyjoules7206]

They are unrealised because they are not intended to be sold. The bonds which they have brought have gone down in value because of higher interest rates rewarding better yields, however they are on the balance sheet as a long term holding asset, even though they have gone in value (below what they paid for them, making it a technical loss), they do not plan to sell them instead just reap the coupon payment.

[@garyjoules7206]

If you buy £100 of 5 year government bonds with a coupon payment of £2 then the yield is 2%. However if interests rates increase the market yield of government bond may increase to 4%, this means that no one will buy any government with a yield of less than 4%. Therefore your governments bonds which were worth £100 will reduce in value such that there yield is 4% as the coupon payment remains the same. (Bond yield) = (coupon payment)/(bond price), coupon payment is fixed and bond yield is set by the market so the value of your bond is (coupon payment)/(bond yield) -> £2 / 0.04(4%) =£50. Therefore your bond has significantly reduced in value however if you hold on to the bond you will receive the face value of the bond plus the coupon payments £100+5*£2=110

[@garyjoules7206]

Additionally even though interest rates are near 0% there is a still a risk of default so the yield will reflect this risk, in 2017 interest rates were 0.75% in america and us government bond yields were 2.6%. Banks will be perfectly fine as long as they do not have to sell significant amounts of bonds which at a loss and become insolvent, however with lots of bank failures depositors may worry and choose to a withdraw their deposits instead. This would cause banks to use their short term liquidity to fund it however if there are lots of outflows they may have to start selling their assets (at a loss) to fund it and if their deposits (debt) are less than than their liablities (all the assets that the bank owns including bonds) then the bank cannot afford all withdrawals and is insolvent. Therefore the best way for many banks to deal with this crisis is attempting to ensure customers that their deposits are safe and so they won't withdraw their deposits and force them to sell their assets at a loss. This is why the FED has agreed to back depositors further in order to try and stop people worrying about this.

[@kakandelawrence7473]

Using you, and your taxes

[@mikestanmore2614]

Nobody ever thinks of the JPM shareholders in these circumstances. Imagine how they must feel, having the government take the risk and JPM take the upside. It must be terrible for them.

[@RUHappyATM]

And I thought the very well paid financial gurus are smart. Obviously they didn't think interest rates will rise. WTF are they being paid 7 figures?

[@phoenixfats1190]

If rates keep going up.... anything is possible.

[@vigigamehacker123]

maybe!***[citation required]

[@vinniechan]

Isn't it incredible that John Pierpont Morgan tried and.true model of buying up peers in distress while appearing like the saviour still works out like a charm

[@yudhiadhyatmikosiswono9082]

Heard that one bank from San Fransisco have same red flag like Silicon Valley Bank and First Republic Bank.

[@jonasbaine3538]

So KRE Calls and Calls on individual regional bank stocks?

[@psoltan]

How can anyone know if the banking crisis is over if we don't know how much higher the Fed will increase interest rates?

[@mattrodger7097]

Convexity kills is a saying in finance and here is the proof. Keeping the interest rate at 0 and raising rates causes a lot of pain for holders of bonds etc. Small changes in rates has a big impact on price ie high convexity. I think it is too early to call an end to this. The weakest banks have failed due to interest rate risk in their banking books. But if businesses and consumers are suffering from higher rates then there will be an increase in credit losses. Basically, upside will be limited.

[@edwardgofsky4862]

We will never see another financial crisis in our lifetime. Janet Yellen 2017.

[@ChrisJohnson-tn1mo]

Aren’t these banks also short amc and gme? 🧐 Weather directly or indirectly

[@ktktktktktktkt]

While there could be some small correlation between a drop in share price and depositors pulling their deposits, I feel it would be quite weak. Most depositors are not constantly watching the stock price of their bank. Most large depositors probably have a CFO smart enough to know that the bank's stock dipping is not a good reason to pull your deposits. If the share price dip is related to a news article/piece, maybe that would help but I still think the correlation would be weak in this case.

[@lonyo5377]

Correlation is not causation...

[@ktktktktktktkt]

@@lonyo5377 great quotation. bad context. go study corporate finance and then come back.

[@anthonyiannozzi6777]

Hey Jamie..how's the gold price manipulation scam at your firm going?

[@jgreijin]

How many of First Republics top brass sold all their shares before the collapse of its price? Most likely the "shareholders weren't made whole" was that regular investors weren't, but that the rich and people in the industry were made 100% whole :D

[@dosgos]

As interest rates rise in a weak economy, the loan books of weak banks deteriorate. The weaker banks will be risky for some time. Recent government explicit guarantees for the biggest banks has created a lot of chaos.

[@samsonsoturian6013]

Except there is no weekness in the economy, and there was no guarantees beyond what FDIC insurance provides

[@dosgos]

@@samsonsoturian6013 lol

[@samsonsoturian6013]

@@dosgos don't you have a math test to fail?

[@tobene]

JPM should just be nationalized, it effectively acts as a branch of government already

[@WorldinRooView]

Unfortunately I thought it was over before the FRC quarterly and I put a small percentage of my account into these regional bank plays, took some damage on that, so staying out of the financial sectors for one more quarter at least. Probably will not put money into black swan sector recovery plays in the future until the related equities at least have a quarter report past to ensure sector fall out further and not catch a falling knife as I did in this instance.

[@havencat9337]

that's what you get for piling into meme stocks and looking for quick money. Congrats

[@melikechoc0]

I bought a DPST call at the 7 strike a while back Oh well, I'll just let it expire and die.

[@WorldinRooView]

@@havencat9337 This isn't quite fair to meme stocks, $PLTR did quite well in comparison to my action. 😜

[@mattbob1995]

2023... FDIC... so poetic

[@blairimani]

Is this the same person who makes Yesterworld?

[@my1vice]

Shit happens.

[@Marva123]

The crisis is just beginning

[@makindeaj2243]

Bond holders 😂 more like bag holders😂

[@johnd.5601]

There's only a handful of the 4000+ stocks that are profitable! Public companies are jobs for Americans and when people are working things are stable. These jobs pay taxes and the jobs are funded by investors. Earnings are not important as jobs. That's not even accounting for how ETF and index funds weight down individual stock value, then you have 0 DTE options on index funds and individual stocks further pressing down the share holder. I think the damage that has be done will sour future investment by American citizens who are forced into 401k plans. I just don't see future generations truly trusting the stock markets at this point. We went from being stuck home during covid-19 to a crashing economy. We have been stuck in the lowest sentiment readings in recorded history for a prolonged period.

[@httm241]

Raifaissen is next on the block especially given its exposure to Eastern Europe

[@FULANODETAL]

so who are the shortsellers today? a

[@jonnyvr]

Don't make videos touching on companies you hold positions in - you have the ability to directly influence that position due to the content, that is borderline market manipulation and thus borderline illegal

[@toomeys1965]

please change the voice used in the voice over

[@Tie509]

Business talk euphemism translations: "Strategic options" = financially distressed "Strategic financing" = financially distressed AF, run like hell

[@mariodefreitas3094]

Hope greedy short sellers burn in hell.

[@MrMentalpuppy]

Love you OwO

[@ardenchan1213]

Hoping the crisis is not over, as it's a constant source of entertainment.

[@BenjaminBanks615]

😳Maybe you should watch Billion’s or Succession versus slapping your knee from the demise of the American banking sector . 😳

[@samsonsoturian6013]

Who cares? It doesn’t effect the consumer.

[@Aj-yu6ec]

first

[@vigigamehacker123]

nope.

[@Brandon-yr9jb]

Since your completely incorrect take on El Salvador and Bitcoin, I feel like I can't trust anything you say anymore. Probably will unsub.

[@hydronpowers9014]

Calling the Banking Crisis over is like calling the illegal immigration crisis over! 😂 Let's Go Brandon!!!

[@Jimmy-B-]

Thanks Joe Biden

[@makindeaj2243]

Bond holders 😂 more like bag holders😂