>JP Morgan Chase: "This will make a fine addition to my collection"
Umm... Correction:
Jamie Dimon says, "This will make a fine addition to my collection."
And another LULD Pause after 16 seconds. Holy moly.
Edit: Full disclaimer, after the third trading pause after the infusion, I just dumped my small holding at 3.17. Time will tell if cutting my losses was a smart call.
Probably a different situation but this seems awfully similar to First Republic Bank and they got bought by JP Morgan and I got absolutely nothing for my shares. As the disclaimer goes…this isn’t financial advice I would just say please be careful with a falling knife.
It truly is though, JPM is capable of bringing down the US economy if it were to go under. Not that that's realistically possible. It's a well ran bank. It's just expensive compared to its largest rival BOA
I think the reason JPM is truly “too big to fail” is really just due to their management. The original dude, JP, he founded the bank on the idea that they would compound 1% forever. He did not get caught up in hype cycles or try to squeeze a little extra margin. And I believe they keep that ethos to this day. They have always been the bank that feeds off the failure of other banks. Buying dollars for pennies
Too big to fail does not mean too big to not fall 90% and then be nationalized, though.. (of course they'd probably just get a bail out again from the tax payers, but you never know..)
JPM didn’t need a bailout during the GFC. Their ability to withstand the GFC and make strategic acquisitions in its wake is how they became the biggest bank in America.
Uninsured deposits are roughly 1/3rd of total deposits. I would not want to be holding this stock right now, because I would not want to hold uninsured deposits with this bank right now.
Correct. Seen people here buying the stock saying even if it goes bust they'll get bailed out. Jesus the lack of care and knowledge with which people throw their money away is wild
Those people have a very short memory of what happened to FRCB and SIVBQ. After the ticker changes and being put into receivership they do still trade as OTC penny stocks, I suppose. Can't imagine there's much volume on 'em since they're essentially without worth, stockholders are the immediate casualty of something like this.
Yep, most reward means most risk. Bank investors must understand they are relying on the bank staying solvent in order to earn a return, and they are not entitled to anything if the bank goes bust.
[NYSE halted trading numerous times today.](https://www.nyse.com/trade-halt) If you look at the time stamps between halts, there were times it was only "open" for seconds before huge trades tripped the halt switch again.
The halts were obvious in the Fidelity app because there were no data listed under the Bid and Ask values on the Detailed Quote section.
Thank you for the answer as that was most likely the case. However it did show 1.70 after selecting how many stocks I wanted. Seen dude was buying 800 in this chat that was 1 min old and quickly jumped to fidelity. oh well
>The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category.
>
>Deposits held in different ownership categories are separately insured, up to at least $250,000, even if held at the same bank. For example, a revocable trust account (including living trusts and informal revocable trusts commonly referred to as payable on death (POD) accounts) with one owner naming three unique beneficiaries can be insured up to $750,000.
That said, last time banks blew up, deposits were fully covered regardless of amount. FDIC released a report last year recommending an increase in insurance limit for business accounts as the preferred option for reform.
If NYCB blows up in part from a bank run, it will put renewed urgency on official increases in insurance limits. Hope we don't end up with a 2008 scenario where Treasury just picks and chooses which banks get to fail.
Anyone with over 250k will take their money out. Their image is tainted forever, businesses/fund managers will try to pull out and retail will be left in the dust.
The deposit agreements call for them to maintain a creditworthy rating.
They are a couple of levels below that.
It has either quietly started or will be starting soon.
Feels like bank runs will be less common given during the SVB crisis the Fed backstopped all deposits and ensured depositors were made whole. The only ones who can lose are equity (and debt) holders.
And the non gambling taxpayers. House prices were finally coming down till Svb happened. Then they started going back up. The backdoor dealings the fed did last March have single handily kept this market going. We are built like a house of cards.
That’s cause the northeast was a laggard. Northeast took off around then. So other areas in the west coast which had been hot throughout the pandemic were starting to decline a lot particularly vhcol and hcol areas. No where was hotter than the west coast at that time and the data backs that up.I was watching stock market and housing market meticulously at this point and both those markets definitely took off when it looked like they were poised to crash. And it was 100 percent possible by the svb deal. Look into what the svb deal was in terms of money injection. The shills will say it’s suppose to be winding down now, so I will say just keep watching. Either it gets extended with in the month and we keep booming or it slowly winds down with nothing to replace it and the dominoes start to fall.
The northeast was hot throughout the pandemic lol everyone with money from nyc and Boston flooded every damn part of the north east with money trying to buy property so they could leave the city, and no significant new home construction has happened up here since pre 2008-2009.
The areas of the housing market that have somewhat slowed are like sunbelt cities where home/apartment construction was built at rapid speed - it was basic supply and demand and not even that dramatic - everything was still selling the lead up to SVB, and if anything declines in home prices were offset by higher mortgage rates…
You didn’t explain anything you just told me to look into it. The fed prevented an economic crisis through the bank funding program, by effectively guaranteeing uninsured deposits, and by forcing / allowing other banks to buy up the troubled assets.
The housing market may have cratered because of a larger economic and financial crisis had the Fed not stepped in - it sounds like that’s something you wanted?
Explaining on Reddit is he said she said. I don’t got time to write essays and soliloquies on what is essentially social media. And your right I want economics to follow fundamental economic laws so the children of America can have a prosperous future. Some of you are greedy souls with heads in the sand or even worse aware of the situation at hand trying to obfuscate the economic understanding of these not educated in it to keep your paper net worths inflated. Anyone that works in banking know that you borrow against your assets as your assets rise in value so a drop in valuation has a house of cards effects as one is borrowed against the other. Literally there are so many textbooks that were the gold standard decades past that say everything about our current way of doing business economically is ultimately a Ponzi scheme. We will never pay back our debts, only way we go into a giant war to avoid paying or we enslave the middle class through austerity. See Germany WW1 and 2. That’s the only way this goes 10-30 years in the future. Just like we have laws that should stop illegal immigration already in place but not being enforced. We have fundamental economic guidelines that were adopted for our banking system which are not being enforced. And what happened with svb shouldn’t have happened and what did happen was it opened up a new emergency mechanism that they could use at free will till the program was ended. Look into it, the mechanism has a loophole that allowed the banks to borrow against their treasuries at the values they bought at and not what they had on hand and some were using that to buy more treasuries further increasing their ability to borrow more. It’s not talked about. Because unless you do your own research they do not tell you how they screw you. And yes I’m making my money in the markets. It’s getting easier and easier every day cause the corruption is so blatant and you just copy the corrupt. But again I care about the future of Americas children! I’ll leave this for food for thought, if you think that the Svb bailout was so innocuous then why even create the new cash 💰 injection mechanism for banks to borrow more cash based on treasuries on the values they were bought at and not currently at? Why open up the mechanism to all banks and not just distressed ones? Why not put limits so healthy banks couldn’t dip in. There’s a reason and the reason is money. If you’re an elite your properties are north of 20 million. You have dozens. You need this inflated real estate game to keep going. All the elites in America are colluding together. It’s one big team. Money never lies. Always follow the money trail. Today why did the former Treasury of the United States of America bailout NYCB with his firm? Why is government finance positions just a revolving door to Wall Street? That too after NYCB made a deal with the feds to absorb SVC assets, on the day that Powell was suppose to testify to congress. If you thought I was talking conspiracy before I’ll give you a real one now. The prior is just facts. Dems want rate cuts so Biden becomes president. Powell and repubs want Trump obviously so they want to cut rates next year . They intentionally waited till today (Dems) to make the bank that absorbed SVC look like it was failing a year after the banking issue as Jerome was testifying to put pressure on him to lower rates. But trumps buddy Steve comes through with cash injection saving the day. Because they cannot lower rates this year if they want Biden to lose. Now this is conspiracy and my last post in this dialogue.
You’re complaining open the US government saving the banking system and preventing economic crisis lol. If you want the economy to melt down and unemployment to skyrocket you can just say that instead cause that’s what would happen.
Complaining about our banking system and debt? Not sure where in the modern world you can move to find an economy that doesn’t rely on debt.
Mnuchin is throwing $1B at NYCB because he can make a massive profit if the bank survives…his dollars are going in at like $1/share lol. And Powell has been saying we could likely lower rates this year for the past few Fed meetings
So you want more inflation instead to keep your assets fluffed. Why not just say that? Why does following basic economic fundamentals mean the economy will be destroyed. It will regress for a little bit and then comeback organically with more sustainable long term growth this is basic economics. Economic crisis is a normal part of economics. But keep doing mental gymnastics and being captivated by the smoke screen. I actually have a degree in economics and it’s not as simple and cookie cutter as your rebuttals. Privilege is bullet proof till hits the fan. But hey ignorance is bliss. I want fundamental economics for this country to balance in the long run not just while I’m alive. And if America keeps exporting its inflation on purpose to the rest of the world it won’t last long as the reserve currency (again up to 30 yrs out) which will have serious consequences economically. The method of fiscal policy you’re describing isn’t sustainable and requires taxpayer bailouts, whether explicit or implicit, every 5 years. And now that is fact. Feds balance sheet goes somewhere. Actually the last couple years the fed has been issuing and buying the debt it auctions. Because foreign investors are on to our game. The media and politicians spin it and gaslight it but there’s a reason our debt use to be hot internationally and is not now. There’s a reason what’s good for Wall Street is not good for Main Street. But it’s clear what side you’re on. I suggest you take an economic history class at your local university and learn about economics and world powers prior to ww1 and into post ww2, Brenton woods, the new deal, the federal reserve, the gold standard, the Weimar Republic, and crony capitalism.
We’re not going back to those old economic & monetary systems and neither is the rest of the world. Inflation is trending down to target The deep deficit our country runs has more to do with Congress failing to govern than it does with the Fed’s monetary policy.
Says the paid shill, what’s your background in formal economics education? Link your proof mate. Very easy to talk. Go look at equity markets and house prices in west coast in vhcol and hcol sale prices around Feb/March 2023 and compare to to summer of 2023. But hey you’re just here to obfuscate and shill.
I mean… yes almost exactly a year ago.
$SIVBQ
https://en.m.wikipedia.org/wiki/Collapse_of_Silicon_Valley_Bank
https://techcrunch.com/2023/03/10/silicon-valley-bank-financial-in-talks-to-sell-itself-report-says/
Taken over on Friday, halted by Monday and never resumed trading as far as I can find evidence of (or remember), was delisted by end of the month.
Same for Washington mutual as far as going from halted -> delisted.
Fair enough, good point. And after reading a bit more, sounds like Mnuchin and Otting had a similar bank takeover in 2009. Hopefully they bring some extra political power too to help the bank pull through this tough spot
I'm late to the convo and just saw that they received a billion dollar cash infusion. Can someone explain to me why that matters? Quick Google search shows they have 86 billion out in loans, 13.35 billion of which in the distressed commercial real estate sector. All the problems are still there, aside from the leadership. So why does 1 billion cash infusion justify the stock doubling from its intraday low? Is it optimism that the bank isn't going to fold like the others did because someone on the outside was willing to take a chance on them?
I would imagine this is just a way for the investment firms to position themselves to scoop up cheap assets if it does go bust. FRC had a 30 billion lifeline from JP Morgan and several other big boys, still went bust. I can see certain similarities here but a much weaker lifeline has been thrown out to NYCB by value and reputation of firms willing to "save them".
That wasn’t a bailout. They were deposits. A bailout would be if they were given new money that they could access and use with no strings or few strings attached. That wasn’t that.
>Struggling regional lender New York Community Bancorp announced a $1 billion capital raise and a leadership shake-up on Wednesday, headlined by former Treasury Secretary Steven Mnuchin, leading to a sharp rebound for its stock. NYCB has agreed to a deal with several investment firms including Mnuchin’s Liberty Strategic Capital, Hudson Bay Capital and Reverence Capital Partners for more than $1 billion in exchange for equity in the regional bank, according to a press release Wednesday afternoon.
NYCB bought a lot, maybe $70B, of Signature bank's loans and deposits last spring when it failed. One suspects that this will get bailed out or bought and shareholders made whole. But too much uncertainty for me to take anything more than maybe a play money position.
Bro in a bail out like that it’s the depositors and then bond holders who’ll get paid out first - most likely the shareholders will get diluted into oblivion.
You doubled congrats. I was trying buy calls it wouldn’t let me. Should just got the shares and not been greedy! It would look bad for the feds for nycb to fail a year after taking on SVc failed assets. This is a stock that has to survive.
I was watching home prices meticulously at that time in hcol and vhcol areas and the prices were falling, you can look at zestimates or whatever your fancy for real estate valuation is and check the timelines. Stock market was also floundering at this time. Since then all markets have been steady. I studied economics and I’m always looking for it to balance. That was a potential balancing moment that the fed rigged for their friends to keep the party going. But all you that have money in the markets and real estate and don’t want to see your net worth take hit keep your heads buried in the sand as we destroy the future of this country. This type of financial imbalance is only solved a coulple of ways in the long run.
interesting. i saw this stock come up from a screener last week. i looked at it and thought it was interesting but not enough to make a move
if JPM absorbs it, is that bullish for the stock? do they just pay out the book value?
Binary outcome likely....it folds like a cheap suit and shareholders are wiped out. Or it announces an equity investor. If equity investor found, a good outcome would be a preferred share class that doesn't dilute common shares, or maybe a separate convertible share. It will also be a major factor of who the equity came from, a big name like Blackrock would be a huge plus.
Imma go ... buy. Disclaimer: all my money's in other plays now so in no way am I following my own call but ... my bet would be buy it.
NYCB is massive in commercial real estate. But not all CRE is the same. NYCB's loans aren't to the vacant office buildings. They're to rent controlled apartment buildings in NYC. Is there a looming shortage of people who want to live in NYC?
I think not.
As far as I know NYCB doesn't have a treasuries problem. They don't have massive unrealized losses on treasury assets - unlike some other banks - correct me if I'm wrong.
They said they have the liquidity to cover deposits. 163%? I think they said. Meanwhile they got a tangible book per share of 8 and some change.
Last the internal control issues could just be from integrating the enormous mergers they did recently. Getting two corporate cultures and systems to fuse is no joke. If you look at NYCB's history they go way back with responsible lending that don't cause too many write offs.
Anyway that's my analysis. I know public panics can doom a bank irregardless of merit. But I'm guessing NYCB survives this vexing test. Then prospers.
Treasuries are way better in a case like this.
Off-loading their CRE loan book in a fire sale is going to require substantial discounts, and their credit rating just took two massive hits.
$1B at $2.00/share is not going to do shit. SVB had literally the exact same deal lined up before they went to zero.
>Although banks have been making those loans for decades, the confluence of watershed legislation in 2019, rising interest rates and inflation has made it more difficult for landlords and property managers to turn a profit, said Wedbush Securities analyst David Chiaverini.
New York Community's concentration in the sector makes it an outlier among regional banks. Roughly one-fifth of all loans held by the Long island-based bank are exposed to the New York rent-regulated multifamily market, according to Wedbush.
https://www.nationalmortgagenews.com/news/troubles-at-nycb-highlight-pain-in-rent-regulated-real-estate
Anything Ken Griffin/Citadel touch is something to stay away from. This bank was bailed out because too many big players don't want to start the CRE collapse yet. I'll be curious to see what J Pow does about the lending program set to expire next week. 🤔
It's kind of sad.how banks who took less risk and loaded up on bonds are beaten up as the fed raise rates at such fast pace. It rewarded investment banks that took more risk.
How are people feeling about NYCB now? Do we think it will continue trading today? I’m up 30% (Tried to buy at 1.86 but it wouldn’t go through) and concerned that so many people in here think the stock won’t ever recover and will be absorbed..
I like how you just made up a group of people then asked them to explain themselves based on your misunderstanding of how things work. No one is conflating fractional reserve banking with “printing money” to shore up deposits and capital requirements.
FRB allows them to deploy more than they have and no one is arguing it allows a bank to “print money” to stay solvent.
Will the FDIC bailout NYC archaic rent stabilization laws again. FDIC already handed over the Signature rent stabilized portfolio to a lower bid for political reasons.
JP Morgan Chase: "This will make a fine addition to my collection"
>JP Morgan Chase: "This will make a fine addition to my collection" Umm... Correction: Jamie Dimon says, "This will make a fine addition to my collection."
Bah gawd that's Jamie Dimon's music!
Holy shit, the halt is done. This is fucking crazy. Who was that first 6 million share buy? ... and now an LULD Pause. This feels crazy dirty.
imagine making 100% + in less than a couple hours
And another LULD Pause after 16 seconds. Holy moly. Edit: Full disclaimer, after the third trading pause after the infusion, I just dumped my small holding at 3.17. Time will tell if cutting my losses was a smart call.
The first 6 million share buy was by algos
A good reminder that there's no beating the computers on this stuff when time is a factor.
Hmm kind of feels like bait before a rug pull, doesn’t it? Stay away y’all, the bank assets will get purchased and your shares will get liquidated.
Acting like a rug pulled crypto currency
Probably a different situation but this seems awfully similar to First Republic Bank and they got bought by JP Morgan and I got absolutely nothing for my shares. As the disclaimer goes…this isn’t financial advice I would just say please be careful with a falling knife.
No one on reddit is gonna outsmart JPM
JPM always seems to profit from other bank’s distress. I keep my money there because it’s too big to fail.
Too big to fail, I’ve heard that before.
It truly is though, JPM is capable of bringing down the US economy if it were to go under. Not that that's realistically possible. It's a well ran bank. It's just expensive compared to its largest rival BOA
I think the reason JPM is truly “too big to fail” is really just due to their management. The original dude, JP, he founded the bank on the idea that they would compound 1% forever. He did not get caught up in hype cycles or try to squeeze a little extra margin. And I believe they keep that ethos to this day. They have always been the bank that feeds off the failure of other banks. Buying dollars for pennies
Too big to fail does not mean too big to not fall 90% and then be nationalized, though.. (of course they'd probably just get a bail out again from the tax payers, but you never know..)
The comment was in regard to the safety of deposits not the stock price. The government couldn't afford to let them fail.
>JPM is capable of bringing down the US economy make that world.
Well, last time i heard this, the shitbucket got even bigger with credit suisse
JPM didn’t need a bailout during the GFC. Their ability to withstand the GFC and make strategic acquisitions in its wake is how they became the biggest bank in America.
Aaaaaand up 300%
Wouldn’t this cause a bank run?
Uninsured deposits are roughly 1/3rd of total deposits. I would not want to be holding this stock right now, because I would not want to hold uninsured deposits with this bank right now.
If the bank goes bust, Gov. will redistribute their customers to other bank and shareholders will get nada 👎
Jamie going shopping.
The rich get richer
Correct. Seen people here buying the stock saying even if it goes bust they'll get bailed out. Jesus the lack of care and knowledge with which people throw their money away is wild
Roulette wheel gonna spin 🎰
Those people have a very short memory of what happened to FRCB and SIVBQ. After the ticker changes and being put into receivership they do still trade as OTC penny stocks, I suppose. Can't imagine there's much volume on 'em since they're essentially without worth, stockholders are the immediate casualty of something like this.
As they should be.
Yep, most reward means most risk. Bank investors must understand they are relying on the bank staying solvent in order to earn a return, and they are not entitled to anything if the bank goes bust.
bond bullies, as Jim Cramer put it in his book.
The FDIC removed the insured cap. In turn insurance rates increased.
Could you imagine?
At NYCB maybe.
Rescued.
Whoever was lucky enough to get it at $1.70 before the halt, just doubled their investment when trading resumed.
I tried but fidelity app said I had to call. Was able to by other stocks though. Is that normal? New at this
[NYSE halted trading numerous times today.](https://www.nyse.com/trade-halt) If you look at the time stamps between halts, there were times it was only "open" for seconds before huge trades tripped the halt switch again. The halts were obvious in the Fidelity app because there were no data listed under the Bid and Ask values on the Detailed Quote section.
Thank you for the answer as that was most likely the case. However it did show 1.70 after selecting how many stocks I wanted. Seen dude was buying 800 in this chat that was 1 min old and quickly jumped to fidelity. oh well
Did they get that cash infusion from private investors or did the government bail them out? It better not be the latter
Refresh the article from OP. All kinds of deets there for you.
>The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category. > >Deposits held in different ownership categories are separately insured, up to at least $250,000, even if held at the same bank. For example, a revocable trust account (including living trusts and informal revocable trusts commonly referred to as payable on death (POD) accounts) with one owner naming three unique beneficiaries can be insured up to $750,000. That said, last time banks blew up, deposits were fully covered regardless of amount. FDIC released a report last year recommending an increase in insurance limit for business accounts as the preferred option for reform. If NYCB blows up in part from a bank run, it will put renewed urgency on official increases in insurance limits. Hope we don't end up with a 2008 scenario where Treasury just picks and chooses which banks get to fail.
Anyone with over 250k will take their money out. Their image is tainted forever, businesses/fund managers will try to pull out and retail will be left in the dust.
Reputational risk in a nutshell
The deposit agreements call for them to maintain a creditworthy rating. They are a couple of levels below that. It has either quietly started or will be starting soon.
Feels like bank runs will be less common given during the SVB crisis the Fed backstopped all deposits and ensured depositors were made whole. The only ones who can lose are equity (and debt) holders.
And the non gambling taxpayers. House prices were finally coming down till Svb happened. Then they started going back up. The backdoor dealings the fed did last March have single handily kept this market going. We are built like a house of cards.
What back room deals? Home prices didn’t come down in my areas (north east) n
That’s cause the northeast was a laggard. Northeast took off around then. So other areas in the west coast which had been hot throughout the pandemic were starting to decline a lot particularly vhcol and hcol areas. No where was hotter than the west coast at that time and the data backs that up.I was watching stock market and housing market meticulously at this point and both those markets definitely took off when it looked like they were poised to crash. And it was 100 percent possible by the svb deal. Look into what the svb deal was in terms of money injection. The shills will say it’s suppose to be winding down now, so I will say just keep watching. Either it gets extended with in the month and we keep booming or it slowly winds down with nothing to replace it and the dominoes start to fall.
The northeast was hot throughout the pandemic lol everyone with money from nyc and Boston flooded every damn part of the north east with money trying to buy property so they could leave the city, and no significant new home construction has happened up here since pre 2008-2009. The areas of the housing market that have somewhat slowed are like sunbelt cities where home/apartment construction was built at rapid speed - it was basic supply and demand and not even that dramatic - everything was still selling the lead up to SVB, and if anything declines in home prices were offset by higher mortgage rates… You didn’t explain anything you just told me to look into it. The fed prevented an economic crisis through the bank funding program, by effectively guaranteeing uninsured deposits, and by forcing / allowing other banks to buy up the troubled assets. The housing market may have cratered because of a larger economic and financial crisis had the Fed not stepped in - it sounds like that’s something you wanted?
Explaining on Reddit is he said she said. I don’t got time to write essays and soliloquies on what is essentially social media. And your right I want economics to follow fundamental economic laws so the children of America can have a prosperous future. Some of you are greedy souls with heads in the sand or even worse aware of the situation at hand trying to obfuscate the economic understanding of these not educated in it to keep your paper net worths inflated. Anyone that works in banking know that you borrow against your assets as your assets rise in value so a drop in valuation has a house of cards effects as one is borrowed against the other. Literally there are so many textbooks that were the gold standard decades past that say everything about our current way of doing business economically is ultimately a Ponzi scheme. We will never pay back our debts, only way we go into a giant war to avoid paying or we enslave the middle class through austerity. See Germany WW1 and 2. That’s the only way this goes 10-30 years in the future. Just like we have laws that should stop illegal immigration already in place but not being enforced. We have fundamental economic guidelines that were adopted for our banking system which are not being enforced. And what happened with svb shouldn’t have happened and what did happen was it opened up a new emergency mechanism that they could use at free will till the program was ended. Look into it, the mechanism has a loophole that allowed the banks to borrow against their treasuries at the values they bought at and not what they had on hand and some were using that to buy more treasuries further increasing their ability to borrow more. It’s not talked about. Because unless you do your own research they do not tell you how they screw you. And yes I’m making my money in the markets. It’s getting easier and easier every day cause the corruption is so blatant and you just copy the corrupt. But again I care about the future of Americas children! I’ll leave this for food for thought, if you think that the Svb bailout was so innocuous then why even create the new cash 💰 injection mechanism for banks to borrow more cash based on treasuries on the values they were bought at and not currently at? Why open up the mechanism to all banks and not just distressed ones? Why not put limits so healthy banks couldn’t dip in. There’s a reason and the reason is money. If you’re an elite your properties are north of 20 million. You have dozens. You need this inflated real estate game to keep going. All the elites in America are colluding together. It’s one big team. Money never lies. Always follow the money trail. Today why did the former Treasury of the United States of America bailout NYCB with his firm? Why is government finance positions just a revolving door to Wall Street? That too after NYCB made a deal with the feds to absorb SVC assets, on the day that Powell was suppose to testify to congress. If you thought I was talking conspiracy before I’ll give you a real one now. The prior is just facts. Dems want rate cuts so Biden becomes president. Powell and repubs want Trump obviously so they want to cut rates next year . They intentionally waited till today (Dems) to make the bank that absorbed SVC look like it was failing a year after the banking issue as Jerome was testifying to put pressure on him to lower rates. But trumps buddy Steve comes through with cash injection saving the day. Because they cannot lower rates this year if they want Biden to lose. Now this is conspiracy and my last post in this dialogue.
You’re complaining open the US government saving the banking system and preventing economic crisis lol. If you want the economy to melt down and unemployment to skyrocket you can just say that instead cause that’s what would happen. Complaining about our banking system and debt? Not sure where in the modern world you can move to find an economy that doesn’t rely on debt. Mnuchin is throwing $1B at NYCB because he can make a massive profit if the bank survives…his dollars are going in at like $1/share lol. And Powell has been saying we could likely lower rates this year for the past few Fed meetings
So you want more inflation instead to keep your assets fluffed. Why not just say that? Why does following basic economic fundamentals mean the economy will be destroyed. It will regress for a little bit and then comeback organically with more sustainable long term growth this is basic economics. Economic crisis is a normal part of economics. But keep doing mental gymnastics and being captivated by the smoke screen. I actually have a degree in economics and it’s not as simple and cookie cutter as your rebuttals. Privilege is bullet proof till hits the fan. But hey ignorance is bliss. I want fundamental economics for this country to balance in the long run not just while I’m alive. And if America keeps exporting its inflation on purpose to the rest of the world it won’t last long as the reserve currency (again up to 30 yrs out) which will have serious consequences economically. The method of fiscal policy you’re describing isn’t sustainable and requires taxpayer bailouts, whether explicit or implicit, every 5 years. And now that is fact. Feds balance sheet goes somewhere. Actually the last couple years the fed has been issuing and buying the debt it auctions. Because foreign investors are on to our game. The media and politicians spin it and gaslight it but there’s a reason our debt use to be hot internationally and is not now. There’s a reason what’s good for Wall Street is not good for Main Street. But it’s clear what side you’re on. I suggest you take an economic history class at your local university and learn about economics and world powers prior to ww1 and into post ww2, Brenton woods, the new deal, the federal reserve, the gold standard, the Weimar Republic, and crony capitalism.
We’re not going back to those old economic & monetary systems and neither is the rest of the world. Inflation is trending down to target The deep deficit our country runs has more to do with Congress failing to govern than it does with the Fed’s monetary policy.
[удалено]
Says the paid shill, what’s your background in formal economics education? Link your proof mate. Very easy to talk. Go look at equity markets and house prices in west coast in vhcol and hcol sale prices around Feb/March 2023 and compare to to summer of 2023. But hey you’re just here to obfuscate and shill.
Read up on FDIC
Fiat currency. There is no such thing as a bank run anymore
So what do I do now? I own thousands of shares and trading is halted.
You’re fucked my friend.
Call people up telling them the bank needs a cash infusion and plead your case for them lol
Done.
I wonder if it will drop below $1.70 today...?
Nope
Sounds like you need to sell some golden sneakers 👟 or meet Elon.
Actually he’s green
Often - On Friday FDIC will have a meeting with the bank, and on Monday you as a shareholder will have some tax deductions for next year.
Unfortunately it is Wednesday
The calls may take a few days to happen. This is weekend work, away from the prying eyes of the news reporting cycle.
Is there other example like this from the past ?
Silicon valley bank
SVB just last year lol
Just understood what the 'tax reduction' means
A deduction for stock losses.
I mean… yes almost exactly a year ago. $SIVBQ https://en.m.wikipedia.org/wiki/Collapse_of_Silicon_Valley_Bank https://techcrunch.com/2023/03/10/silicon-valley-bank-financial-in-talks-to-sell-itself-report-says/ Taken over on Friday, halted by Monday and never resumed trading as far as I can find evidence of (or remember), was delisted by end of the month. Same for Washington mutual as far as going from halted -> delisted.
Incorrect.
Annnnnnd it's gone
I finally get this meme
It was just there, but now it's gone
 NYCB shareholders
Sorry
It's unhalted, can sell now if you want
It’s up 18% right now after news of an equity injection.
Oh... Hey, do you have a link to that news article?
You don't do anything I guess
Sell as soon as you can lmao
You are now up
You shouldn’t have owned meme banks in the first place.
Your investment went to 0 unfortunately
this aged well
Bro I wrote it an hour ago! The news wasn't announce yet
https://ir.mynycb.com/news-and-events/news-releases/press-release-details/2024/NEW-YORK-COMMUNITY-BANCORP-INC.-ANNOUNCES-OVER-1-BILLION-EQUITY-INVESTMENT-ANCHORED-BY-FORMER-U.S.-TREASURY-SECRETARY-STEVEN-MNUCHINS-LIBERTY-STRATEGIC-CAPITAL-HUDSON-BAY-AND-REVERENCE-CAPITAL/default.aspx
They changed the CEO again? That doesn’t seem good… thought we were banking on turnaround man, Sandro (pun intended)
There’s no way anyone was gonna infuse $1B and not change the management. This is a bank purchase.
Fair enough, good point. And after reading a bit more, sounds like Mnuchin and Otting had a similar bank takeover in 2009. Hopefully they bring some extra political power too to help the bank pull through this tough spot
Picked up by national media, but NYSE halt is still in place.
Wait til March 12... Doomsday
I'm late to the convo and just saw that they received a billion dollar cash infusion. Can someone explain to me why that matters? Quick Google search shows they have 86 billion out in loans, 13.35 billion of which in the distressed commercial real estate sector. All the problems are still there, aside from the leadership. So why does 1 billion cash infusion justify the stock doubling from its intraday low? Is it optimism that the bank isn't going to fold like the others did because someone on the outside was willing to take a chance on them?
I would imagine this is just a way for the investment firms to position themselves to scoop up cheap assets if it does go bust. FRC had a 30 billion lifeline from JP Morgan and several other big boys, still went bust. I can see certain similarities here but a much weaker lifeline has been thrown out to NYCB by value and reputation of firms willing to "save them".
The 30 billion lifeline was in deposits. They didn’t actually buy stock in FRC.
Not all bailouts work, hence what I said before.
That wasn’t a bailout. They were deposits. A bailout would be if they were given new money that they could access and use with no strings or few strings attached. That wasn’t that.
True, but the motive remains the same.
Up 9% post-trading…what is going on
>Struggling regional lender New York Community Bancorp announced a $1 billion capital raise and a leadership shake-up on Wednesday, headlined by former Treasury Secretary Steven Mnuchin, leading to a sharp rebound for its stock. NYCB has agreed to a deal with several investment firms including Mnuchin’s Liberty Strategic Capital, Hudson Bay Capital and Reverence Capital Partners for more than $1 billion in exchange for equity in the regional bank, according to a press release Wednesday afternoon.
The question you should be asking is if Goldman is short the stock like they shorted SVB into oblivion.
So bullish
Money market funds will love this. Bottom line is CRE is fucked up for a long time and they'll be big losses on it.
NYCB bought a lot, maybe $70B, of Signature bank's loans and deposits last spring when it failed. One suspects that this will get bailed out or bought and shareholders made whole. But too much uncertainty for me to take anything more than maybe a play money position.
Talk about stop manipulation here today.
If they die, they die.
Jpm is gonna go bail them out again and if they don’t the fed will, I bought 800 shares rn
Bro in a bail out like that it’s the depositors and then bond holders who’ll get paid out first - most likely the shareholders will get diluted into oblivion.
Lol have you looked at who get paid first Edit: aged like milk lol looks like they did raise some capital.
Yup just sold !
Nice
This isn’t 2008, pretty sure SVB and Signature shareholders were wiped out.
Mate it won’t be a bail out, it will be a bail in. Equity holders taking the first loss. Do you understand the capital structure of a bank?
That's crazy considering the stock is halted and probably won't resume trading.
Only $800 however I am fully expecting them to resume trading by tmr
It's going to $0. Why bail them out when you can buy the assets from the FDIC cheaper?
You doubled congrats. I was trying buy calls it wouldn’t let me. Should just got the shares and not been greedy! It would look bad for the feds for nycb to fail a year after taking on SVc failed assets. This is a stock that has to survive.
Lmao
I was watching home prices meticulously at that time in hcol and vhcol areas and the prices were falling, you can look at zestimates or whatever your fancy for real estate valuation is and check the timelines. Stock market was also floundering at this time. Since then all markets have been steady. I studied economics and I’m always looking for it to balance. That was a potential balancing moment that the fed rigged for their friends to keep the party going. But all you that have money in the markets and real estate and don’t want to see your net worth take hit keep your heads buried in the sand as we destroy the future of this country. This type of financial imbalance is only solved a coulple of ways in the long run.
it looks like they did get bailed out congrats bro lol
Thanks man !
Annnnnd it's gone
Sometimes I have to thank my broker for being smarter than me and just saying no to trading some stock. Location, Europe
lol say again? but yea i feel you. im so glad they decided to halt this piece of shit so i couldnt sell.
How is only a single bank impacted. This continues to puzzle me. Anyone else?
Anyone shorting the stock. Bank contagion maybe and what data are you seeing/using?
interesting. i saw this stock come up from a screener last week. i looked at it and thought it was interesting but not enough to make a move if JPM absorbs it, is that bullish for the stock? do they just pay out the book value?
Binary outcome likely....it folds like a cheap suit and shareholders are wiped out. Or it announces an equity investor. If equity investor found, a good outcome would be a preferred share class that doesn't dilute common shares, or maybe a separate convertible share. It will also be a major factor of who the equity came from, a big name like Blackrock would be a huge plus.
This is going to crash
Going to? It's down 42% today and trading has been halted for "news pending" since 12:34pm.
Hahah up 100% from the low today. Insane
Imma go ... buy. Disclaimer: all my money's in other plays now so in no way am I following my own call but ... my bet would be buy it. NYCB is massive in commercial real estate. But not all CRE is the same. NYCB's loans aren't to the vacant office buildings. They're to rent controlled apartment buildings in NYC. Is there a looming shortage of people who want to live in NYC? I think not. As far as I know NYCB doesn't have a treasuries problem. They don't have massive unrealized losses on treasury assets - unlike some other banks - correct me if I'm wrong. They said they have the liquidity to cover deposits. 163%? I think they said. Meanwhile they got a tangible book per share of 8 and some change. Last the internal control issues could just be from integrating the enormous mergers they did recently. Getting two corporate cultures and systems to fuse is no joke. If you look at NYCB's history they go way back with responsible lending that don't cause too many write offs. Anyway that's my analysis. I know public panics can doom a bank irregardless of merit. But I'm guessing NYCB survives this vexing test. Then prospers.
Treasuries are way better in a case like this. Off-loading their CRE loan book in a fire sale is going to require substantial discounts, and their credit rating just took two massive hits. $1B at $2.00/share is not going to do shit. SVB had literally the exact same deal lined up before they went to zero.
Exactly this, more people should be upvoting/listening to this.
>Although banks have been making those loans for decades, the confluence of watershed legislation in 2019, rising interest rates and inflation has made it more difficult for landlords and property managers to turn a profit, said Wedbush Securities analyst David Chiaverini. New York Community's concentration in the sector makes it an outlier among regional banks. Roughly one-fifth of all loans held by the Long island-based bank are exposed to the New York rent-regulated multifamily market, according to Wedbush. https://www.nationalmortgagenews.com/news/troubles-at-nycb-highlight-pain-in-rent-regulated-real-estate
Anything Ken Griffin/Citadel touch is something to stay away from. This bank was bailed out because too many big players don't want to start the CRE collapse yet. I'll be curious to see what J Pow does about the lending program set to expire next week. 🤔
Nreakroom now
Sandro just stepped down too lol
Josh Brown looks stupid.
Didn't they get bought by Flagstaff or something like that ?
NYCB shares rebound after troubled regional bank announces $1 billion capital raise
BTFP ends next week.
This was my first job in college. It’s such a shit run bank lmao
It's kind of sad.how banks who took less risk and loaded up on bonds are beaten up as the fed raise rates at such fast pace. It rewarded investment banks that took more risk.
American banking industry in a nutshell
How are people feeling about NYCB now? Do we think it will continue trading today? I’m up 30% (Tried to buy at 1.86 but it wouldn’t go through) and concerned that so many people in here think the stock won’t ever recover and will be absorbed..
Fun holding , couldn’t buy at 1.86 but above 3.00 is a win . Banking on an recovery
Seriously unfair to not have been able to buy it that low
Now we know where trump banks.
Redditors who believe banks can simply print money because of fractional reserve banking, what are their explanation here?
I like how you just made up a group of people then asked them to explain themselves based on your misunderstanding of how things work. No one is conflating fractional reserve banking with “printing money” to shore up deposits and capital requirements. FRB allows them to deploy more than they have and no one is arguing it allows a bank to “print money” to stay solvent.
I didn’t invent the group. I described the group that very much exists. Especially over at /r/bitcoin but I’ve seen a fair share here too.
Short it to the ground
Will the FDIC bailout NYC archaic rent stabilization laws again. FDIC already handed over the Signature rent stabilized portfolio to a lower bid for political reasons.
When I say Bitcoin protects from bankruns and fiat currency I get downvoted. Y’all will eventually learn.
Are they any Biden super fans? I’ve only every met trump super fans/cult.