Good luck. Can’t stand Schwab as a brokerage. Their app is borderline unusable. Ditched them a while ago

I fundamentally disagree with you. I stand by my assertion that big banks would have no problem with many regional banks going under. In fact, a banking system where even more money was centralized with a dozen big banks would be their ultimate preference. I don’t believe the biggest banks deposited $30B to prevent regional bank failure contagion. Not at all. They have a different relationship with FRC, clearly.

Better have Gap insurance!

Okay? This changes nothing

The big chunguses had and have zero incentive to stop the spread of REGIONAL BANK fear. The prevailing narrative has overwhelmingly been - move your money to big banks for safety. The JPMs and BofAs would gladly take all of FRC’s clients overnight. I can’t say for certain FRC is going to recover (although I think they’re already on their way) but the big banks definitely did not invest $30B into FRC for the reason you are stating. In fact, it’s just the opposite. They see FRC is a very low risk, easy return while they inevitably recover over the next 6-12 months. You’ll see FRC skyrocket at earnings on 4/13 after it’s revealed their balance sheet is fine… my two cents

I believe you’re underthinking it. The prevailing narrative as these regional banks were collapsing was to get your $ into the largest banks. If anything, the more regional banks that went under, the more depositors would flee to the big boys… of course they didn’t do it for love, they did it because they see FRC as a low-risk, short-term-high-reward investment because it’s being unfairly lumped into the same group as SVB and Signature (who both a had a much different, irredeemable type of exposure)

Not convinced of its credibility, but interesting read. Thanks for sharing that

Fair enough. This is WSB after all

It’s been opaque at best. Powell and Yellen literally were saying opposite things last week

That’s an awful lot of speculation and the Fed has received increasing backlash from bailing out SVB

Their deposits aren’t insured. Less risk than being a shareholder (in the meantime) but definitely not zero risk

The big boys “had to bail FRC out anyway”… you’re delusional. Like any other competing bank, they would have gladly let them go to zero. In fact, the prevailing narrative was - MOVE YOUR $$$ TO THE BIG BANKS QUICK!!

They deposited $30B because they saw a low-risk option to make easy interest from a bank with a much better balance sheet than SVB. I don’t understand how you think this equates to FRC is going to zero, especially when you just acknowledged JPM, Citi, BofA, etc are taking on some level of risk. They won’t lose here, and neither will FRC

I’m not sure why you think the $30B in deposits from the big banks is all FDIC insured. The Fed has made no such claim. Their stance has been opaque at best. You’re making the assumption the big boys deposited $30B at FRC with zero risk.

I’d imagine you own $0.50 puts then, no? Since $FRC’s demise is a foregone conclusion and all…

That’s not very kind. I’ll try to get more current info on tutes ownership %

I don’t put a lot of faith in Moody’s ratings for a number of reasons.

As far as your claim “big money left” why would BofA, Citi, JPM etc just deposit $20B if they suspected their deposits would disappear?

Because he bought puts