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https://www.reuters.com/business/finance/us-regulator-set-take-over-first-republic-source-2023-04-28/#:~:text=People%20walk%20past%20a%20First%20Republic%20Bank%20branch,person%20familiar%20with%20the%20matter%20said%20on%20Friday.
Thanks Tony.
Things could escalate very rapidly.
Next week who knows .
Yes, I think this is the tip of a very predictable iceberg. Three banks in the U.S. (Silicon Valley Bank, Signature Bank and Silvergate) have collapsed since early March, a few more to go is the hot rumours coming out of the US
News wires are reporting the US Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic Bank under receivership.
In simple terms, San Francisco-based First Republic Bank is facing collapse.
Its shares crashed 43 per cent by the close of trade in Friday New York trade.
There are global ructions in banking.
With over $US200 billion ($302.34 billion) worth of assets and roughly 7,000 employees, its financial distress is taken very seriously by the authorities.
If it winds up, it will be the third bank collapse in the US this year...more to come
Recapping the SVB causes if failure ...
the Federal Reserve’s anti-inflation obsession causing it to raise interest rates too high and too fast;
the inherent fragility of banking, which for centuries has periodically erupted in crises;
inadequate regulation of this fragile system, which often leads to high profits that accrue to banks and their wealthy owners;
the corruption and self-dealing that often result from banks’ insufficient supervision; and
the lack of public alternatives for financial institutions and services that could perform many of the key functions of banking and finance with less risk and without the private financiers taking their cut.
https://truthout.org/articles/three-banks-have-now-collapsed-a-progressive-economist-explains-why/
Regulating banks is not that hard. The politics of it is the hard stuff ...
https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/
More to come, ho hum, business as usual, and incidentally when will the Fed Reserve become accountable?
The Gnome
One govt report on the bank failures ... interesting read
https://www.gao.gov/assets/820/819616.pdf
Interesting indeed goldgnome
They talk about corrective action to prevent what.......last time I checked if a bank makes wrong decision on its business model and investments, either is rescued by the tax payers or fail. This is how a capitalistic free market should work, and on the rescued by the tax payers I don't agree either. Any corrective action from authorities can only shrink the profit or delay the inevitable failure.
POG has received a big push from recent Banks troubles but imv there are some dark forces at play right now trying to mitigate the inevitable...
Last week I was expecting that, after US GDP number came out so low. the U$D index was going lower, in stead the opposite reaction happened and interestingly POG immediately lost $10/15.
There must be some US big banks if not the Fed directly, playing at some particular right moments of trading with futures, to make sure USA keeps its hegemony and dictatorship on the rest of the world.
They call them "the illuminate" I call them financial mafia.
Looking at POG price action imo it is clearly showing a battle between shorter and fundamental support, coming from physical buying.
Although recently POG technical analyses gave a RSI divergence signal, its level is now coming down close to oversold, which should at least signal some strong support at these prices.
Sure if not macroeconomics, a shock from banking sector can put POG to a higher level, many tips of iceberg out there, even the huge debits of car manufacturers or housing developers eventually will connect to banks...
Kitco. Michael Lee.First Republic meets its "end", "financial calamity" will send gold above $ 5 K.
A little extreme, but worth a read .
If you can be bothered.
Turkey has seen a surge in gold demand in the past year as citizens embraced the precious metal as a hedge against inflation, which ran at a pace of over 85% at one point last year, and local currency devaluation.
The central bank's data showed that gold reserves fell 9% in the last seven weeks.
https://www.kitco.com/news/2023-04-28/Turkey-is-selling-off-its-gold-reserves-to-meet-surging-domestic-demand.html
Hi Mr Bond, this may well be the case,,but as we all know from past events what should happen and what actually happens are very different!
Michael Lee, Founder of Michael Lee Strategy and a former Morgan Stanley VP, said, “I don’t see how First Republic opens as First Republic on Monday morning.”
In an interview with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, Lee claimed that the U.S. has not seen the last of the banking crisis, which started in March with the closure of three banks: Silvergate, Silicon Valley Bank, and Signature.
“You’ll see a lot less small savings banks, across the country,” he forecast. “We could get the number of banks [across the U.S.] cut in half, just from consolidation… that collapse in lending that you’re going to see countrywide is what is going to slow the economy down. It’s what is going to get inflation under control.”
https://www.kitco.com/news/2023-04-28/First-Republic-meets-its-end-financial-calamity-will-send-gold-above-5k-Michael-Lee.html
April 28 (Reuters) - The Federal Reserve on Friday blamed the deregulatory zeal that occurred during the Trump era for contributing to the second-largest bank failure in U.S. history, appearing to take a clear stand on an acrimonious policy divide in Washington.
https://www.reuters.com/business/finance/us-fed-points-finger-trump-era-rollback-svb-demise-2023-04-29/
https://www.dtss.us/blog/the-federal-reserve-bank-is-corrupt/
https://schiffgold.com/guest-commentaries/shock-theres-corruption-at-the-fed/
https://www.investing.com/news/stock-market-news/pnc-jpm-putting-in-final-bids-for-first-republic-in-fdic-auction-sources-3068547
A bit more detailed news on First Republic on Monday, for UK market will be Tuesday as tomorrow market in UK is close.
After the first shock news of bank troubles and consequent POG spike up, the FDIC has managed to calm the market with reassurance of insures deposits up to $250,000 and I think providing some liquidity. But the aim was always to allow for the trabled banks to be resqued by some
... troubled banks to be rescued by some other bigger banks.
If this is not going to happen and First Republic will fail imo it will renew fear and create some shockwave throughout the markets. Unfortunately is is going to be good for POG and gold miners, may not be good for other shares.
I might be wrong but with JPM intervention on FR, it seem banks troubles are not going to make any particular change to POG... I like the wordings from the media been "JPM taking over" next they may even make it look like a hostile bid.....in the end it was another bank failure, transfered to USA debit account via JPM and with the masterfully orchestrated accounting practice of Fed Reserve, been the auditors... To shock the ponzy scheme system of USD hegemony, we need another black swan event, problem is with so much information outh there the financial mafia is able to organise it self and mitigate any "Lemhan Brothers" type of event. No dubt for gold it would help been included in a BRICS newly created currency, silly policies to rise rates without hedging on gold, when a country has a debit that will never be repaied.
Separate issues - no bank panic- struggle why people think there is
https://www.kitco.com/news/2023-05-01/2-JPMorgan-buys-First-Republic-Bank-s-assets,
The Federal Reserve System was established by Congress over a century ago to serve as the U.S. central bank. President Woodrow Wilson signed the Federal Reserve Act into law on December 23, 1913.
https://www.federalreserve.gov/faqs/about_14986.htm
https://www.usagold.com/cpmforum/who-owns-and-controls-the-federal-reserve/
https://www.kitco.com/gold-price-today-usa/
(Kitco News) The gold market reversed gains and fell below $2,000 an ounce after data showed the U.S. manufacturing sector contracting for the sixth consecutive month in April.
The Institute for Supply Management (ISM) manufacturing index was at 47.1% last month, slightly better than the expected 46.8%. The April figure was also 0.8 percentage points higher than March’s 46.3%.
https://www.kitco.com/news/2023-05-01/Gold-price-drops-below-2-000-as-U-S-manufacturing-sector-contracts-for-sixth-month-in-a-row.html
I don’t want any crisis’, what we need is a rapid decrease in inflation, preferable with some items eg fuel, deflating. Gold and CEY(mining PMs) generally move most at more extreme moves eg faster than expecting dropping of inflation- this is what I’m hoping for. Any crisis generally whacks all stocks
Theres no panic now that Fed Republic has been awarded by the FED.
But there was earlier with people withdrawing ,that was panic,and understandable panic.
The FED is now on the edge of panic ,along with government ,in case there are repetitions Espescilly before next years election. It would not show good governance.
Should read First republica,typo.
Infation double edged sword using more rate hikes ,could cause more problems for the Banksters with their dodgy dealing. Rate hike already in the algos, but algos are only as good as their programmers.
Spot on MrBond46
People panic and withdraw money from FR, rumours spread and panic settled in...
This time thought the Fed had learned their lesson from 2008/9 crises and by twisting some definition of QE of bank failure, they have manager to kick the can down the road on more time.
Problem is if they keep interfering with market forces and rise rates, their financial problems are just getting bigger and next bank to fail may as well be JPM.
I am expecting/hoping after this week expected Fed rate rise, that POG will start to move higher. Some sort of sell the news on USD Index where, the reality of the miserable state of US economy is right now, starts to become clear.
https://www.youtube.com/watch?v=X42Q1wEl8QA&lc=Ugxx7U7fFIh1q2qnpDZ4AaABAg
Thanks Lucky, "You know it makes sense" .from Only fools and horses ,a wonderful Dell Boy quote..
So what's changed this time, nothing really!
Financial crisis - Silly Money, Nov 08
https://www.youtube.com/watch?v=H1LyFWw0jwk
https://www.youtube.com/watch?v=-N6xtvZHwBM
I am starting to suspect this current banking crises is genetically engineered by the Fed and Co.
Rising rates when they shouldn't out of an inflation caused mainly because of the Ukrainian war and supply gluts after covid...not because booming economy and increased demand.
Hmmm, there are 1000 of small banks in USA ready to fail, some will be taken over by the US big banks making a great profit , like JPM did.
The changed the rules of a filing bank, doing without paying creditors. Writing off debit with ok from the US Gov agencies and getting a nice cash injection. Even in the banking world the big get bigger, once only few banks will hold the majority of retails account and deposit, they will introduce digital currency...
That’s cos their isn’t a banking crisis