In reply to jmabarone :
How much of that is security vs. just having it there? In the last 20 years, here in Ann Arbor, MI- a very peaceful and prosperous city, there have been multiple bank robbery attempts. So some of the live availability in a bank my be just basic security- just like when you see "our drivers carry less than $X" on delivery cars.
Well, you can't have a big run on a bank if you only have 5-10k there, right? I understand that it was a long shot, but for it to take a week to get cash for me is ridiculous. The check (From Fidelity, btw) was deposited Thursday at 5pm and was cleared by noon on Friday.
NOHOME said:Interesting that JP Morgan was allowed to buy the bank since it violates a law that no bank shall control more than 10% of the deposits in the country.
The deal was done with an eye to executing with the buyer that caused "the least" cost to the government ( ie taxpayer) but make no mistake, the taxpayer is picking up the tab for this rush to a single bank.
As an aside, I notice that a Canadian bank is now being laid to siege by short sellers. Might this be another opportunity for the Reddit style counter attack?
TORONTO — Hedge fund bets against Canada’s TD Bank Group hit US$6.1 billion on Wednesday, a 45 per cent increase from 14 days ago, according to data provider ORTEX’s calculations, one day ahead of the Canadian lender’s annual general meeting.
Eventually its going to all be JP Morgan. Yay?
Flynlow (FS) said:Eventually its going to all be JP Morgan. Yay?
And the monopoly comes full circle. I know it won't happen, but still a funny thought.
We're 4 months and 3 bank failures into the year, and the total assets of the failed banks have already eclipsed 2008.
I'd imagine that things are getting a bit tight at the FDIC these days. Especially as the debt ceiling issue comes to a head. Hopefully no other banks need bailouts in the next few weeks!
Correct me if I am wrong, but is the situation of these failing banks similar to that of a homeowner who's house is underwater but they are still making payments. That situation works, and could continue to work indefinitely, until the bank calls the loan, no?
PACW took a dive yesterday. At market open everyone gets a short position
NOHOME said:Correct me if I am wrong, but is the situation of these failing banks similar to that of a homeowner who's house is underwater but they are still making payments. That situation works, and could continue to work indefinitely, until the bank calls the loan, no?
A big difference is that at the same time the bank's depositors are making withdrawals, which makes it much tougher for the bank to survive in the long-term. Deposits are needed for them to meet capital requirements, which are necessary for them to continue lending money. It's closer to a homeowner who's underwater but making payments, but has just lost their job. It might work in the very near-term, but the long-term outlook is bleak.
Shares of regional bank PacWest (PACW) tumbled nearly 60% Thursday morning after being halted for volatility. The drop came following Bloomberg reporting the company has been “weighing a range of strategic options.”
Other regional banks followed PacWest lower. Western Alliance (WAL) also fell nearly 60% as the Financial Times reported Western Alliance is exploring a potential sale. Zions (ZION) fell nearly 16% as the reports weighed on the sector.
<snip>
Shares of First Horizon (FHN) also slumped 38% at the open, its largest drop since September 2008, as Toronto Dominion Bank (TD) and First Horizon called off their potential merger due to regulatory hurdles.
----------------------------
That's just today.
In reply to preach (dudeist priest) :
Guys the banking industry is strong quit worrying so much.
Found this on the internet. No idea of it's validity and it would probably be better presented as # of banks per capita, but my first thought was "do we need so many banks?"
If this is true, we could be in for more of a bumpy ride:
https://finance.yahoo.com/news/half-america-banks-already-insolvent-133000968.html
In reply to STM317 :
Id assume thats because since the 40s we have been the finance center of the world.
Also the Fed hiked the rate again. I assume we will see some more collapses in the future
If you bought some pacwest Thursday, could have doubled your money in a day.
STM317 said:Found this on the internet. No idea of it's validity and it would probably be better presented as # of banks per capita, but my first thought was "do we need so many banks?"
I just recently thought about this question. However, what surprises me most is not how far ahead we are but how few banks China has. Has anyone wondered why this is?
In reply to NedBurdges :
Nothing to wonder about. China is a Communist state controlled by a single party with a great deal of control over the banking sector. "Prior to 1978, the Chinese financial system followed a mono-bank model (People’s Bank of China) whereby all the country’s banks were part of one administrative hierarchy."
https://www.sciencedirect.com/science/article/abs/pii/S0378426607003731
In an economy that's based on money (vs something like barter), controlling the flow of that money gives you a lot of power. The more authoritarian a government is, the less they want to share power and the more likely they are to place heavy restrictions on who is allowed to own and operate a bank.
The US is the world's largest and most free economy, therefore it's not surprising that we have a lot of banks.
(It's probably better to use GDP as the divisor if you want to compare different countries, rather than population)
Folks:
This was almost certainly revived by a pre-canoe spammer.
In reply to Duke :
You are almost certainly wrong. From now on, I will be more careful to avoid arousing suspicion...
In reply to NedBurdges :
I absolutely hope that time proves me wrong!
NedBurdges said:STM317 said:Found this on the internet. No idea of it's validity and it would probably be better presented as # of banks per capita, but my first thought was "do we need so many banks?"
I just recently thought about this question. However, what surprises me most is not how far ahead we are but how few banks China has. Has anyone wondered why this is?
Not really. But I had no idea that there are so many banks in the USA.
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