18 Burst results for "First Republic Stock"
Cryptocurrency for Beginners: with Crypto Casey
"first republic stock" Discussed on Cryptocurrency for Beginners: with Crypto Casey
"An asset class that's largely uncorrelated with all of this macro madness using masterworks. So be sure to scroll down and use links below to access the correct and official site, as well as redeem any special offers they have for us. Sweet. Crises don't happen all at once they happen in waves. So the next wave of the banking crisis like we've discussed in previous videos is the collapse of the commercial real estate market. This is because of a few factors like decreased demand for office space post pandemic, the fed's fast, steep interest rate hikes, causing commercial mortgages to become more expensive as they expire in renew every two to 5 years unlike most residential mortgages in the U.S., which span 15 to 30 years, so when these commercial mortgages go into default, the banks will be left holding the bag, and they will be forced to sell all those assets on their balance sheet at a loss, similar to what happened when all the banks collapsed back in March due to runs, and being forced to sell all their treasury bills, at losses, to liquidate, to meet depositors demand for cash. And although mainstream media has been lying, make surprise, purporting that everything is fine in the banking crisis is over. Another bank is failing. First republic bank shares of first republic fell sharply and hit a record low Tuesday. As investors questioned how the bank would stabilize itself after losing about 40% of its deposits during the first quarter. First republic stock fell more than 40% on Tuesday, extending its year to date losses beyond 90%. A record intraday low at $8 27 cents per share. Also on the consumer front, credit card debt is at record high as the fed raises rates again. And as we've talked about in this video, you can check out by clicking on the link above. It's seeming more and more every day as if this was all by design. Check out this clip from SEC chair Gary gensler's testimony before Congress last week. One final question and I got to be honest.
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"Money unlike your financial potential with IBKR all in one account solution, visit IBKR dot com slash money. But regional bank turmoil remains in focus this morning as we learn of new developments concerning first republic bank, Bloomberg state rapaport joins us with those details. Good morning, Steve. Good morning, Karen and Amy, the Treasury Department and other financial regulators are reaching out to banks and equity firms to explore a possible bailout for the struggling lender. That's according to Reuters, which also says it's unclear if a rescue would include taxpayer dollars. First republic stocks sank this week after the bank reported a 41% drop in deposits during the first quarter. Many customers bolted despite the lender getting a cash infusion from large firms to stabilize it, live in New York, I'm Steve rappaport, Bloomberg daybreak. Steve, thank you another stock we are following this morning is Amazon shares are coming off a volatile day. Initially, earnings boosted Amazon's stock around 12%. Now it is down more than 1% in early trading. Chief financial officer Brian Al savski says Amazon's cloud business is cooling. As expected customers continue to evaluate ways to optimize their cloud spending in response to these tough economic conditions in the first quarter. And we are seeing these optimizations continue into the second quarter with April revenue growth rates about 500 basis points lower than what we saw in Q one. CFO Brian Al savski says Amazon's most profitable division saw a 16% gain in revenue, the slowest growth rate since Amazon began breaking out the unit sales. And we got another big earnings report this morning, oil, giant Chevron beating expectations as first quarter profit surged. Traders are watching if oil supermajors can sustain massive share buybacks and dividends despite something prices. Meanwhile, Exxon earnings are crossing the Bloomberg right now first quarter profit beating and a less estimate. And Karen a couple other notable stocks on the move this morning shares of Intel are up more than 5% after the chipmaker promised a second half recovery, shares of snap are plunging after the social media company reported its first ever quarterly revenue decline, snap is down now nearly 20% in the pre market. But to politics now, Amy, and a few headlines involving the race for president, there's concern about Democrats that President Biden's reelection announcement is not exciting voters. Presidents campaign reports not raising much money since the announcement. And a case on the plot to overturn the 2020 election back in focus, Donald Trump saw his former vice president testify before the federal grand jury investigating the matter yesterday. We are told Pence testified for several hours. And that's the 5 things you need to know to start your day brought to you by interactive brokers. And again, Exxon crossing the Bloomberg had posted its strongest ever start to a year as oil production soars from new wells in the U.S. and off the coast of South America. Futures are lower this morning straight ahead your latest local headlines plus a check of sports and this is Bloomberg. Thank you, Karen. 6 31 on Wall Street now let's bring in John Tucker with more on what else is going on in New York and around the world John.
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"Trading around near zero. I mean, it's down some 97% on the year that in some manner, its assets are going to look attractive to somebody out there. So the lower it goes, the more likely someone is going to come forward. It would be the more cheaper option for the financial system broadly if a buyer was to come in versus the FDIC putting them into the receivership. If the FDIC does go ahead and put them into receivership, you know, the first republic shareholders get zero and then the loan book will be chopped up and divested probably at a big loss. Now, remember, the FDIC has already sitting on 30 billion of losses from the first three bank failures so you can see the reason why they're on hesitant to take on more losses. Okay, how's it all playing out then in broader markets? Well, thankfully, yesterday's first republic stock plunge didn't drive a bigger risk off move in the market. I think that was quite welcoming to see, even things like the regional bank index outperformed yesterday, even with the stock price continuing to plunge. So that was welcoming. But the bad news is, is that the problem facing first republic in a large brush stroke is that they, their business model isn't viable with a fed funds rate at 5% and they're making way less than that on their loan portfolio. And that is something that is shared by many regional banks out there and a lot of people argue that this necessarily isn't going to turn around until we see the fed cutting rates and make that cost funding for these regional lenders less. So, you know, we could be in for quite a long slog where it's just one small lender after another coming into trouble. Market supporter, thank you so much for joining us with details of that story up next. The CBI to be renamed is it game over from Microsoft's Activision deal and PWC's $1 billion accountant. Now the paper review on Bloomberg daybreak Europe. The news you need to know from today's papers. Tampa Bay Leon Gans joins us now with the details. Let's start
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"We're approaching half by 6 in the morning here in Hong Kong and in Singapore, half past 6 in the evening on the Atlantic seaboard of the United States and Rashad salami. And I'm Brian Curtis trading is getting underway in some markets around the region still have a lot out there though to open up this morning. Right now the future is a suggesting some modest losses, although S&P E minis reflecting obviously futures in the U.S. are up a little bit up about two tenths of 1%. We'll get to the markets with Doug prisoner coming up. Right now we look at the top stories. All right, bank regulators in focus as they weigh the prospects of downgrading their private assessments of first republic bank, and Kate's reports. The FDIC has been giving first republic time to reach a private deal to shore up its finances, but as weeks go by, senior officials are increasingly weighing whether to downgrade their scoring of first republic's condition. That move would likely curb the troubled banks access to Federal Reserve lending facilities, regulators favor a private rescue of first republic that doesn't involve the U.S. seizing the bank and taking a multi-billion dollar hit to the FDIC's insurance fund. In Washington and Kate's Bloomberg daybreak Asia. Well, certainly looking at first republic stock and debt what we see is that the shares have been plunging their all time lows and this came after CNBC had a report saying that advisers have lined up potential buyers of new stock as part of a rescue plan. You know, that stock risk was down 49% yesterday and 30% today. It's now down 95%. 95% from its 52 week high. Well, Boeing says a 7 37 cent back will not impact its delivery goals. We get the story from Bloomberg's Tracy junkie. Boeing is not letting a faulty 7 37 part discovered earlier this month change its delivery or earnings targets for the year. The company is warning that the defect will slow deliveries over the next several months, but Boeing also plans to accelerate production of the popular and profitable 7 37 later this year. CEO David Calhoun says the delays will affect airline customers that had counted on the aircraft for summer travel, and he says Boeing feels terrible about that. I'm traci janke, Bloomberg, daybreak, Asia. eBay is projecting revenue for the current quarter that top downloads estimates. Let's get that story courtesy of Bloomberg's Charlie pellet. It suggests the ecommerce company's efforts to boost sales after a post pandemic slump are paying off. The company said revenue will be 2.47 billion to 2.54 billion in the period ending in June. Analysts were estimating 2.43 billion. eBay is cutting costs after a boom during the pandemic fizzled out earlier this year, eBay announced it would cut 500 employees or 4% of its workforce. In New York, Charlie pellet Bloomberg daybreak Asia. He may stock was up 2.9% in after hours and in our Boeing story there before. We had gains of four tenths of a percent during the regular session. All right, 32 minutes past the hour, it's time for global news. Chinese president Xi Jinping and his first call with Ukraine's president volodymyr zelensky since the Russian invasion said that the only way to achieve peace is
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"Size of the liquidity that was being extended to them from the likes of JPMorgan, Morgan Stanley, Bank of America, et cetera, one of the big takeaways, though, is even though this is not systemic risk, perhaps up from first republic, you still have to ask the question of whether or not the fed slashed the FDIC plays that role of lender of last resort, essentially, can you be too big to fail or too small to fail? In terms of confidence in the banking sector, and this is, I think, more crucial, less for first republic specifically, because you can already see as Kayleigh mentioned, the stock tanking, the investors are headed for the exits, even if there is some sort of rescue here. But at the end of the day, when the announcement of this fed backstop came about, there was this narrative in the market that this is O 8 all over again because Federal Reserve, the government is not going to let any of these banks fail. And I think this is a really crucial statement from those authorities saying, actually, we will. And there is a limit to that backstop. Well, but this does raise a broader question and I take the point because I've heard it a lot as well that this is kind of an idiosyncratic story first republic is the one that has these issues, things have stabilized in the broader regional banking space, but still this raises the ongoing question of what happens with uninsured deposits in the scenario of a failure. And if we do see that some of these depositors aren't made whole, could this reignite the flight of those deposits to bigger lenders that would be too big to fail. I could see the argument of and I'm kind of talking to myself here greedy but I'm also kind of talking to you that I do understand the argument that you wouldn't necessarily see more failures because largely regional banks have told us that the deposit situation has stabilized. But if you do see that a lender is allowed to fail, doesn't that mean you go to the too big to fail banks, this just feels kind of like a very something that could get very ugly quickly. And that's exactly what happened, right? I mean, they essentially JPMorgan took a very kind of active approach in terms of, I don't want to say rescuing first republic, but saying, okay, we're going to start by contributing the most out of the big banks towards first republics kind of balance sheet. They also talked there were those talks. Again, not on the record, but there was conversation according to a Bloomberg reporting that there was talk of an acquisition or a potential acquisition at some point. I can't say that is a conversation that's continuing. It doesn't seem like it's part of the narrative anymore, but it was there. And I think to your point, Kaley, there is this idea that ultimately the smaller banks can almost latch on to the bigger banks and therefore pull the whole thing down. Almost like a game of Jenga even. But we're not there yet. And I think the reason for that is it was as simple as the deposit flows, the minute that the deposit flows were one insured and two moved to the larger banks that did not have the same liquidity issue. The problem, the baking turmoil was not as big of an issue. There was no more fear of an O 8 relapse. The other big story that we're following here, at least where Washington or politics meet Wall Street creedy is this Walt Disney lawsuit against governor Ron DeSantis, pretty remarkable to see this filed in federal court referring to a targeted campaign of government, retaliation, orchestrated by the governor of Florida as punishment for Disney's what it calls protected, free speech, threatening business operations. It isn't really moving the stock too much. And I don't know if the market addresses something like this before it actually goes to court, but it's a massive story in Washington. It really is and look, the Disney story, it's fascinating for a lot of reasons because when you think of Disney particularly, my favorite fun fact about Disney, by the way, is that they lobby so aggressively for the extension of a copyright laws for the Mickey Mouse of it all. That tends to
Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"first republic stock" Discussed on Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"Above 34 cents, and checking out the top 100 crypto gainers for the past week. Finally, everything is in the green once again as the past couple of weeks have been pretty embarrassed for the overall altcoin market. So you gotta love it when we're pumping and checking out the crypto green inferior index. One of my favorite indicators shows what currently rated a 56 greed. Yesterday, a 53 neutral last week a 63 greed and last month a 64 in greed. So there you have it, how many of you are currently bullish on the king crypto? Let me know in the comments right down below. And now let's dive into today's Bitcoin, technical analysis, shall we and discuss what's happening in the charts and in the market. Bitcoin tag $30,000 into the April 26th Wall Street open as the bulls gain further momentum from the U.S., banking woes, that's right, right here looking at the Bitcoin, one hour, I'm sorry, this is the one day candle chart looking pretty bullish. And data from coin telegraph markets point trading view followed as it briefly reclaimed the psychological line in the sand, capping 11% gains versus its local lows, from April 24th, Bitcoin continued to respond positively to the rapidly evolving next chapter of the U.S. banking crisis. The centered around first republic bank, which revealed a $100 billion reduction in the posits this week, talk about the ultimate bank run. That's a 100 billion son, the U.S. government was reportedly uninterested in an intervening on the day, according to the source cited by CNBC, as the bank's stock FRC opened down another 22% before being halted for volatility, the weekly stock prices lost thus totaled over 50% and lo and behold, Jim Cramer, he told you to go long on this bank just a couple of weeks ago right before it's crashing, go figure and responding Arthur Hayes, the former CEO of crypto derivatives exchange bitmaps, smelled the blood. If the government were to refuse the bailout of first republic, he argued it could set off dangerous chain reaction of insolvencies, but if the bank fails and depositors take an L a big loss, then every other bank with the same issues will go under shortly thereafter. The entire U.S. banking system suffers from the same issue, facts ain't telling no lies. Hayes concluded that both Bitcoin and gold were chiefly benefiting from the lack of clarity and associated cold feet surrounding the bank's fate and the lawmakers next step, quitting him here. This uncertainty is what is driving outside money like gold and Bitcoin higher. Now let's discuss $40,000 Bitcoin price action incoming, shall we? Bitcoin traders and analysts thus state confident about the overall uptrend continuing, regardless of the temporary consolatory moves around the 30,000 mark quoting Mikhail Ben de pop. The crucial breaker was 27 8, not 28, 8, we're ready for 40,000 full send and Dan crypto trades drew comparisons between the current rebound and the prior breakdown to the monthly lows, quoting him here, sweeping the highs and
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"From customers pairing back a lot of those purchases. But what I do think is kind of fun to talk about is the AI because that's what everybody is kind of focusing on with this companies and every time they seem to announce something to do with that, you see the stock jump right up. You know what I'll say, I think the Doritos and the fritos and the walkers to go back to that. Is for, you know, it's more of a consumer goes with maybe lukewarm canned American beer. It's just not top tier. It doesn't rise to the adult level of chip. And I was thinking, I do like the Stacy's pita chips. Now, if I'm going to have a gathering of sophisticated people, educated people, I will serve them the Stacy's naked peanut chips. With some hummus and maybe some other charcuterie. And then I looked, guess who owns Stacy's pita chips? Who owns it? PepsiCo. There you go. All right, well if you come to the Sweeney state down the shore, you're getting fritos and Budweiser and cans. And you're going to enjoy it. Ready to go up. Thank you so much for joining us for the covers of the markets for Bloomberg. We appreciate getting that update a very busy earnings day. And I'm going right to the banks here. First republic stocks down, and I'll get a teeny 25% or something crazy too. Losing a quarter of the value. And it's already been more than decimated, right? 28% down. Yeah. They have the earnings last night. They do a 12 minute prepared remarks, no Q&A lane. I'm blaming Howard. I mean, Herman Chan on that. I mean, Herman Chan is our go to guy on the regional banks. Herman, how disappointed do you think when you were talking to investors? Unfair, by the way, Herman. We should be blaming Mike rougher, right? Yes. The CEO is the one who says whether or not we're doing Q&A. And if things are so bad, so awful that the CEO says I'm not even going to take questions. I'm going to do this as fast as I can and then I'm going to go hide from shareholders. I'm not going to take questions because I have no good answer. That is pretty pathetic. How surprising to you? Really disappointing. I thought this was an opportunity for them to really lay out a plan of a way forward and having a bunch of items that they wanted to talk about, including asset sales, including shrinking the balance sheet, shrinking the balance sheet to a path to profitability over time. And at the very least spin it, right? Right. At the very least, try and take some questions, explain to analysts explain to investors, you know, how you're going to write this shit. Right. And if you don't, then investors have to assume you don't have a plan. We have capsized and we are sinking. Yeah, the uncertainty is still there and they did not do a good job of really tackling the issues that really faced them today. The deposits are sort of moderating. So that's great down only 2% through April, but really the path forward is still unclear. I mean, after 60% of your deposits fly out the door and you get a little boost because Jamie Dimon calls some of the richest people banks in the world and says, we'll give you a 30 billion for a few months. But it's still, it's much worse than even it looks in our headline. It does, and it's just really disappointing that they didn't take Q&A. Herman, thanks so much for bringing us up to date on that again. The stock's down 28%. All right, here's a cool round table here. Yesterday was a crazy day in the world of cable news, Don lemon from CNN gone. Tucker Carlson from Fox gone. What does this mean for the business? And what does the universal NBC mister shell gone? So crazy day in the world of media. What does it mean for the politics as we head into the next election cycle? What does it mean for the business? We have a cool roundtable here. Wendy schiller, Brown university professor, she joins us here. Mark Douglas CEO of mountain. Let's start with you, Wendy. I mean, really what the Tucker Carlson thing. How does that impact the calculus, I guess, of the messaging, if nothing else of the Republican Party and maybe Donald Trump and some of the others? I think it's really interesting to see how the momentum will shift or not ship. We saw Fox really kind of almost virtually dumped Donald Trump and start really promoting desantis. And Tucker Carlson stores stuck with Trump in some ways, right? It wasn't really willing to go there. And that was a mouthpiece for Trump. And now we see desantis kind of endangering some doubts, maybe faltering a little bit. It hasn't really hasn't jumped in yet. And he's gone pretty far right on the social agenda, which I think making some Republicans a little nervous about electability. And so now was Fox do. You've lost your mouthpiece for Trump. You were all in on desantis, but now you've got doubts. So I think this is really important for the Republican Party. They used Fox to consolidate their message, put pressure on members in the Congress and state legislatures to go along with whoever they decide they want to anoint. And now it's unclear who's going to be annoyed there. Yeah, and I mean, you're the expert on this. Mark Douglas over at mountain helps companies to drive marketing dollars and raise revenue, but you focus on the politics Wendy. So before I get to Mark, you know, you teach the American presidency at Brown, introduction to
CoinDesk Podcast Network
"first republic stock" Discussed on CoinDesk Podcast Network
"Moving assets into their AFS portfolio, zooming out. It looks like they're really managing quarterly earnings using their hedges and that available for sale and ultimate maturity book. As opposed to doing proper risk management. So that's just two of the things. There's other issues that they had, but I think SUV management is grossly negligent in their conduct. I don't mean to rub salted anyone's wounds, but you know, as you're digging into that, does it actually make you feel better about the question of how systemic versus specific this particular crisis is? Well, I don't think it's systematic. That's the fundamental question. Now, this issue around whole to maturity mark to market insolvency issues is real, right? The fed alone has a $1.5 trillion mark to market loss from the very same issue of holding mortgage backed securities and treasuries that have declined in price in rising rates. Now, that's a real issue. However, V two goes away, provided two things are in place. One, you stop bank runs. So if there are no bank runs, then the banks can hold to maturity and eventually those bonds are money good. So the FDIC together with the OCC and the Federal Reserve Sunday of the week before last week seems to have made this kind of implicit protection of deposits across banks. And you've seen that even with the first republic, which we'll come back to. The second imperative you have if you want to protect those banks is, well, how do you stop the bank run? You stop the bank runs by providing some kind of guarantees or you have banks deposit, like you saw with fresh republic. The second thing you do is liquefy the bank's balance sheet. You enable the banks to provide liquidity to depositors that do want to leave without forcing sales of banks illiquid assets. If you can do those two things, then you can address the $600 million mark to market issue without any taxpayer funds. And that's a key difference between now versus 2008. In 2008, you had toxic assets on the bank balance sheets. They had to write down. So it was impairments to bank capital. You can not hold a toxic asset to maturity. The hole is there. The hole is not going away. This is very different. You can hold those balanced and maturity, what you have to do is safeguard against a bank run and ensure that banks can liquify their balance sheet. However, the Federal Reserve hasn't pulled out all the stops. There's still our risks and questions. For example, infrastructure, they've got a massive jumbo mortgage portfolio and that is not considered eligible collateral for the Federal Reserve. Meaning the fed can't finance that. So let's get into a little bit more of the details here on the bank term funding program. So one, I would love just sort of more specifics for people who haven't been up to speed on what that program is and what it's meant to do. You kind of just articulated it's meant to effectively allow banks to get liquidity for their bond portfolios without actually having to sell them into market to sort of stem the bleeding until those losses don't have to be realized and it can stay an accounting issue. Let's talk about kind of where that is now and perhaps even bring in sort of first republic here on what it suggests in terms of will that program be enough are they going to have to expand eligible collateral, you know, kind of what the market is discussing around that at the moment. Yeah, as you pointed out, the bank term funding program provides liquidity for mortgage backed securities as well as treasuries up to a 100% of the market value of those bonds. So it creates liquidity. And it doesn't force a crystallization of a loss on a bank's balance sheet, as you pointed out. It seems that most banks are taking advantage of the fed discount window, which is led to the balance sheet expansion around $300 billion more than the BTF R program. So that's something to point out. The other part around first republic, two things. One is JPMorgan provided a credit facility to first republic, which makes a ton of sense because JPMorgan is the leading originator issuer specialist of mortgages in general. And as your audience may know, most mortgage that originated are sold to Fannie Mae and Freddie Mac, the government sponsored entities. But to originate and sell mortgage to those institutions, the mortgages have to specify, had to meet certain criteria in terms of underwriting, FICO score, even the size of the mortgage. First republic built their business by originating what are called jumbo mortgages. These are mortgages that exceed the loan size for Fannie Mae Freddie Mac. But they're very high quality mortgages. First republic has a very low default rate. And first public built a great business originating these mortgages. The problem is that because Fannie Mae and Freddie Mac won't buy them, those mortgages are illiquid. So they've got to fund them with either deposits or this capital markets via securitization. And guess which investment bank is a number one issuer of these types of securitization? Well, JPMorgan. JPMorgan pioneered the Biden rent asset class. It created the shelf for Blackstone's invitation homes. They're the best in the business at this. So they provided a credit facility to first republic to liquefy that portion of the balance sheet, which if memory serves as a 100 billion plus, it's a massive amount of these jumbo mortgages that now JPMorgan has offered a credit facility to we don't know the terms of that. It's not going to be a 100%. By the way, the other part to point out is those mortgages and you can see this in the ten Q, they have a yield of around 2%, yields an hour much higher. So the fair met value of those mortgages have dropped in value, that means there's also this whole maturity issue around those mortgage first republic. First report but really wants to hold those to maturities. And those are long duration mortgages. So it's a long time we have to wait, and the funding cost of JPMorgan will charge will be higher than the 2% plus that first Republicans earning on those mortgages. So bottom line, first republic is underwater through these liquidity programs, both at the Federal Reserve, and at JPMorgan. They're not making money on that liquidity. It is really a form of emergency liquidity to get them through this bank run. So do you think then that the stock going out is down like 22%, I think at the time of recording. Just reflects the reality of the impairment of the business even if these credit lines have solved sort of the most urgent risk in the short term. I haven't focused on the stock price of the value. I'd love to do that next weekend. I'm very interested in that question, actually,
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"Equity futures on the S&P 500 positive by a tenth of 1%. 5 or 6, 7 hours away from a fed decision, looking for a 25 basis point hike, said there's a few times there are some banks out there looking for reports, including garbage sacks and Wells Fargo. We camped up with catched up with Sarah house caught up with her from Wells Fargo a little bit earlier on this morning who suggested, even if they do pause today, they can restart high kick, which was Jan hasis point. I've regarded sax as well. In the bond market, what a round trip has been on a two year, the last time they met the day of the close, two point or rather 4.1% on a two year right now, 4.2%, a lift again today by three or four basis points on a two year. We've been all over the place, north of 5, south of four, 4.2% at the moment, somewhere in between. On a U.S. ten year, 360 one, 32, which is where the two year was only a couple of weeks ago or something like that. Anyway, in the FX market, let's get to foreign exchange for you and wrap things up there. Euro dollar just short of one O 8. One O 7 95 positive a quarter of 1% cable stronger. The pound stronger against the U.S. dollar one 22 79, Lisa up a half of 1% there. Ultimately, off the back of this inflation store in the UK, ten handle, 10.4, upside surprise. Which is not exactly what they want to see. So we've been talking about banks for the past couple of weeks, and that's been the entirety of the movers. And yet there has been other stories, have another stories that have been emerging, that are relevant because they speak to this question of how long we can remain in this inflationary environment before profit margins get cramped. And I wanted to take a look at some other companies outside the banking sector that kind of speak to that Nike came out. They beat quarterly earnings in a really robust way. They've been doing really well, getting rid of some of their inventories, working down their excess inventory. But profitability is the problem. They're high freight and material costs, and they are expecting that to really weigh on profitability going forward. It's interesting that even after that big beat, those shares are lower, more than a percent because of the longer term outlook. GameStop shares. This is one of the meme stocks up almost 50% after beating expectations. They had a surprise fourth quarter adjusted profit. Basically talking about some progress, perhaps because of all the money that they've been getting from meme traders. And in sympathy AMS shares up more than 10%. Remember when we were talking about the silly money being done? Well, maybe it's not, right? People are willing to not say that it's silly. I'm not going to talk about anyone's trade like that, but this question of the shares that move the most on a sort of risk on feel. Have not changed that much. And I think that's relevant because it speaks to the moment we're in and where some of the movement wants to go. First republic, not just about unchanged. On that now specifically because I want to avoid stocks. Okay. Yeah. I'll talk about the banks. Let's stop being all over the place. Now we're talking about another solution. 11 banks 30 billion on deposit first republic. That doesn't get it done. Now they're talking about doing more. There's this conversation about a government backstop government support. What is the government's role in this? It's a great question, especially because you do have banks also involved. So why are they involved? What are they looking for from the government? How much is it to stem some of the potential illiquidity in their asset pools that they have that were really underwritten during a time of much lower interest rates? There's also a bigger point here, which is that the banking industry is built on trust. We've talked about this many times before. If you have a bank that is talking about strategic options going forward, that in and of itself is not the greatest thing to shore up confidence. So how do you get some sort of stability without that strategic option being executed on? Certainly the ton of things over the last couple of days better outside of that one bank and we save that continues. If it continues, though, what does that mean for monetary policy? I love that. I love that comment appears. Ridiculous. If we find a banking solution, I'll be back to where we were two weeks ago, which is a conversation about no landing and all of the above. All things really changed. I would argue no. I would argue that this has materially changed the outlook not because there's some systemic banking crisis. But because the cost of capital has gone up materially for some of these banks, suddenly the deposit outflows are coming into the fore. And there is a restriction on the amount of capital that some of these smaller regional banks that account for so much of the credit creation have to lend out and to generate some of the growth that it has. The majority of people out there I think coalescing around that view for sure in the last week or so. We get lucky, we get to catch up with bob Michael twice in a week. Once on a Sunday evening. And this is more normal, bob. Good morning to you. From JPMorgan asset management. Bob Mike McKee messaged me earlier and he wanted to know what is bob Michael on today and two. What does bob want me to ask in the news conference? What is it today, but I think he's got to ask that the fed was set up the Federal Reserve act of 1913 was designed to prevent a run on banks. So they must have seen this. They must have seen the depositor outflows is the are they seeing anything else that worries them and what is that? And I think there are things in the commercial property market. There are things in the bank loan market where the resets have doubled and tripled what borrowers are paying. So there's still a lot out there. So bob, how did they parse a message that goes from, we want credit conditions to tighten to, oh my goodness, it's not a financial crisis, but things are tightening too quickly. How do they parse that line to a market that doesn't like nuance? They don't need to, Lisa, they've told us their data dependent. Look at the data. They've won. They don't need to pile on. Look at inflation. If you look at month to date ten year tips, they're down 30 basis points to 2.1%. Inflation expectations are coming down. Look at the University of Michigan consumer sentiment one year inflation expectations, they're down the most in two years. That's pre when they started to hike rates. They're at 3.8%. And then if you go back to the charter, they were set up to prevent a run on banks. Well, they pushed it to the point where they had to step in and stop a run on banks. So they've achieved the maximum pressure they needed to
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"This is a public day break but at least our top stories this morning. Markets count down to the fed decision with financial stability and focus. Rate hike doubts are creeping into the bond market for the first time, this hiking cycle. The latest on UBS, it looks like he's a major pick to top dealmakers from Credit Suisse. That says the Swiss government freezes the frit bonuses for CS bankers. Bloomberg learns that Wall Street leaders and U.S. officials are discussing a potential intervention at first republic bank that could include government backing. Live on markets in some of the world's most vulnerable economies are flashing default warnings and comes as turmoil and the U.S. and European banking system makes it even tougher for emerging nations to borrow and repay debt. We'll have the details. Just gone 8 a.m. across yammer, it's I'm using a Medellín to buy we're counting down to the fed decision just a few hours to go on the S&P 500 mini caution returns after the enthusiasm and the prior session to the upside. We are just barely above the flat line here on the S&P 500 mini. I'm also looking at U.S. treasuries where it's JPMorgan is identifying the worst liquidity since 2020. U.S. ten to three 57 90, your Bloomberg dollar index is unchanged and the Brent crude just short of $75 a barrel. Standard charter is saying that the unwinding of speculative oil lungs, well, that's going to likely be done at least for the moment. I want to talk about rates of volatility as we look forward to defend. This is your actual as opposed to imply an expected volatility in two year treasuries. That's eclipsed to swings during the global financial crisis, shout out to David and iglesia, the key difference, some market are coming out out of more a decade of lower interest rates. The clear anchor for the fed path should trim the tail of the rates distribution, but the dislocations and the volatility surface. That's going to take time to normalize. And remember, Jay Powell summed it up in the February press conference and he said, certainties just not appropriate here, and that is very much getting reflected in this trade. I want to talk about first republic bank. Another day, another set of events. This time a Bloomberg scoop that is suggesting that government backing is one of the options that are being considered. This is what the stock's done over the last 20 days. Losses close to 90%, but with the Bloomberg scoop, you've seen a little bit of a stabilization. The understanding being that there could be an attempt to try to shore up the lender, this is according to people familiar with the matter, the firm's unrealized losses have been a sticking point. There are other ideas floating around and that includes offering liability protection as well. The talks are still very much ongoing. I want to get out to the markets in Asia more broadly. Yvonne Mann joins us from our Hong Kong studio for more. Yvonne. Yeah, it's the call before the J pal press conference really in Asia. We're seeing quite a bit of risk rally here for a second day. As you mentioned, it seems like the banking sector woes have faded a little bit. We heard from Jenna Yellen, the treasury secretary overnight, saying that they could be looking at certain types of rescues or interventions for other banks as well, if in fact that situation does arise. So that is certainly lifting risk sentiment here leading up to this fed. And we are leading a lot more closer to a hike of 25 basis points. It's about 80% chance now versus maybe about a week ago when this was all kind of a toss up. So you're seeing the Nick asked some 2% in Tokyo, equity gains are continuing across the board here. 1% gains for Singapore, Taiwan, and Hong Kong. The dollar is pretty steady right now. You are seeing actually given what we see in the commodities, that's seeing a bit of red here this morning with iron ore down some 2%. But it is that yield pickup that we're seeing that we saw with treasuries and now we're kind of following through in the Asia Pacific, but as you mentioned, the volatility may be suggesting that after 25 basis points, we could be seeing a signal from the fed that they could be done with this pandemic tightening cycle. So that's kind of what the market is leaning towards in terms of what we're focusing on in terms of fundamentals. It's the earnings earnings earnings in Hong Kong. And ten cents certainly is going to be front and center the next few hours or so. So analysts are expecting that they could be snapping out of two consecutive quarters where revenue has contracted. So eking out a small gain, potentially here. We're seeing the stock up some 2%. It's all about advertising demands, all about gaming approvals and what the company is going to comment on that. Neil, this was one of our interviews and CFO. This morning, confident that they could reach that sales target of this year, the stock up some 7% gigli auto also a beat when it comes to their earnings and we're watching all these chip makers as well, given what we're going to be talking about here, the Biden administration is set to impose a more China curves on some of these chip makers. So watching the likes of Samsung electronics today, Yusuf. Everyone, thank you for the roundup, but we'll check back in with you later on in the show that's Yvonne Mann there. I want to talk about what Bloomberg's learned around UBS because apparently they want to cherry pick the top deal makers from Credit Suisse instead of supporting a plan to spin off the first Boston brand as an independent
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"Bloomberg simm and Demi can reports from Istanbul. Bloomberg radio on the ground everywhere. And I'm Doug prisoner at Bloomberg world headquarters in New York. Let's check this hour's top business stories on the markets, well the fed meets tomorrow will have a 2 p.m. Wall Street time decision and markets have assigned an 80% probability of a 25 basis point rate hike. This meeting, though, will be a debate over on one hand, fighting inflation and on the other risk to financial stability. We are told Wall Street leaders in U.S. officials have been discussing an intervention at first republic bank they are exploring the possibility of government backing to encourage a deal to shore up this troubled blender earlier, Reuters had reported the first republic was looking at ways to possibly downside if attempts to raise new capital failed. We had shares in first republic up 30% in the regular session, but in late U.S. trading this stock was down 9%. The Biden administration is making it even more difficult for those semiconductor companies operating in China. We have more from Bloomberg's Denise Pellegrini. The administration is moving to Titan restrictions on new operations in China by chip manufacturers if they get federal funds to build in the U.S.. The $50 billion chip in science act passed last year. Could block firms that win grants from expanding output by more than 5% for new technology and 10% for older tech. This also includes a $100,000 spending cap on investments in advanced capacity in China. It's all part of Washington's efforts to curb China's ambitions. While securing supply of components for AI, supercomputers, and everyday electronics in the U.S., Intel Samsung, and Taiwan semi are among those currently operating in China. The rules will be finalized by the commerce department later this year. After a 60 day public comment period. That is Bloomberg's Denise Pellegrini. We are hearing that UBS wants to cherry pick top dealmakers from Credit Suisse after UBS takeover of its Swiss rival. Here's Bloomberg's Eric lamb. UBS is set to be particularly interested in advisory bankers in the United States, and those covering prominent industries such as technology. We hear that UBS executives wants bolster their own investment bank while dumping riskier operations. That could include dropping a Credit Suisse plan to carve out CS first Boston as a new competitor. The Financial Times had reported that UBS would talk with CS former board member Michael Klein to unwind that deal. The spin off had been a centerpiece of Credit Suisse's restructuring. Still, some credits we staff are holding out hope that an alternative plan can be lined up. That is Bloomberg's Eric lamb. We check markets every 15 minutes for you here on Bloomberg right now in Hong Kong, the hang seng is up 2.4% in Tokyo, the nikkei last quoted up 1.9% in Seoul the Cosby hire by 9 tenths of 1% similar gain in Sydney for the ASX 200, and on the Chinese mainland we have the Shanghai composite higher by 6 tenths of 1%. U.S. yields moving lower in the Tokyo session a ten year at three 58. Global news powered by more than 2700 journalists and analysts in more than 120 countries, I'm Doug prisoner, and this is Bloomberg. If you love them enough to listen to them practice the same song on tuba. Please be done. Over and over and
CoinDesk Podcast Network
11 Big Banks Create $30 Billion Rescue Package for First Republic
"11 big banks, including JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, and more announced last night that they would take these somewhat theatrical step of depositing $30 billion worth of uninsured deposits into the troubled first republic bank. But even that move, along with the introduction of the fed's latest bailout window, it might still not be enough to quiet concerns about just how stable and safe the U.S. banking system really is, just this morning as we go to air, even with yesterday's rescue still in the headlines, we're seeing first republic stock trading down nearly 25%. Zach, we've had a backstop, a lending facility that lets banks basically exchange their get their cash back for bad investments made and essentially the best terms. And now the big banks are throwing cash at the problem also. What do you think it will take for the regulators to restore confidence in the banking system or is that something that we're not even really expecting at this point? Well, you know at first republic bank doesn't have the taint of crypto attached to it. That's the thing that stands out to me as it relates to its ability to survive while we see signature be wound down. Obviously this crisis is one of confidence. If you look at people who are researching this issue, pretty much all midsize banks are having this issue, right? They bought bonds that are now worth far less than what they were marked as on their books, right? So clearly, I think people are worried that this could spread to other banks across the country, not just those in California who service, tech firms, but again, those who have customers who are looking to find yields and who are realizing that in this interest rate environment, they can go elsewhere to get yield and they can take that money out of a bank quickly in the palm of their hand and deposit it in a money market account, but they can deposit it with treasuries at their own will, right? So I think clearly what we're seeing is a response to sort of this systemic reality in which we now find ourselves in where money is moving as fast as it ever has. Faster than ever indeed. And all of a sudden, billions and billions of dollars are being drawn out of these banks in hours time. It's quite remarkable and I think that's why we're seeing these remarkable steps.
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"NASDAQ doing a little bit better off down about 7 tenths of 1%. Yields coming in pretty substantially the two year down 18 basis points 3.97%. We're going to have more coming up this is Bloomberg. Good morning. Let's get some company news right now with Dan Schwartzman. Thanks, Paul, and I do look forward to riding that Dodge challenger of yours, Matt, news is not good for Credit Suisse as UBS group and the firm both are opposed to a forced combination, a category of Credit Suisse bonds is warning that the lifeline thrown by Switzerland's Central Bank may not be enough to stabilize the bank. Currently the bank's holding company has around $82 billion of bail in bonds, as well as tier one notes that are trading at distressed levels. Despite Swiss authorities saying that Credit Suisse meets liquidity and higher capital requirements and has access to a $54 billion credit line, investors are not convinced shares are down right now. We are nearing 11% so far. San Francisco based first republic ban has been handed a lifeline. Bloomberg's and Kate's with details. 11 banks have agreed to chip in $30 billion of their own money to give a financial shot in the arm to first republic. JPMorgan Chase, Citigroup, Bank of America and Wells Fargo are each making $5 billion deposits. The cash infusion could solve first republic's immediate issues, including fleeing customers. Thanks and investors, though, don't seem so convinced the lifeline's gonna help first republic stock dropping right now by 24% so far this morning. Last night, the bank detailed this financial conditions while also suspending its dividends. SVB financial has filed for chapter 11 bankruptcy in New York. William Caster is the chief restructuring officer for SPV financial group says the move was made to quote preserve value as a bank looks for strategic alternatives for some of its assets such as SVB capital SVB securities
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"Large and small cap financial funds. Hopefully he has a good weekend to relax and recover. It's been a tough time for folks in the banks over the past couple of weeks. We're going to have more coming up this is Bloomberg. Good morning. All right, let's get some company headlines right now with the Schwartzman. Thanks, Paul. Good to see you Matt as well. San Francisco based first republic bank handed a lifeline by a consortium of the 11 largest banks in the U.S., the CEOs of those banks agreeing to deposit $30 billion into first republic and keeping the money there for at least 120 days. Big banks have been raking in deposits recently as nervous customers withdrawing funds from smaller regional banks, first republic stock has dropped by right now about 21% so far this morning after the bank detailed its financial conditions last night while also suspending its dividend. More details on the collapse of Silicon Valley bank, Bloomberg's and Kate's with more. Silicon Valley bank's parent has gone to bankruptcy court, SVB financial group has filed for chapter 11 protection after a run last week on its banking unit prompted federal regulators to seize it. The 40 year old SVB, which catered to tech startups, was the biggest bank to fail in more than a decade, and as the second largest financial institution after Washington mutual to fall under FDIC receivership. Thanks, Ann, news isn't good for critics, Credit Suisse is UBS group and the firm both are opposed to a forced combination, a category of Credit Suisse bonds is warning that the lifeline thrown by Switzerland's Central Bank may not be enough to stabilize the bank. Currently the bank's holding company has around $82 billion of bail in bonds, as well as tier one notes that are trading at distressed levels, despite Swiss authorities saying that Credit Suisse meets liquidity and higher capital requirements and has access to $54 billion credit line, investors are not convinced that shares are down right now closing in on ten percent. Those are the company's stories we're following this hour. I'm
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"A Bloomberg business flash. And it is four 21 on Wall Street. We checked the markets for you all day long here at Bloomberg and stocks did surge earlier and now after the bell we have FedEx delivering for investors shares up just about 8% right now FedEx posting earnings that topped Wall Street estimates. It raised its annual forecast as a cost cutting plan began to kick in and that helped them make up for a decline in package volume. Meantime, it is official, first republic getting a total of 30 billion bucks in deposits from Bank of America Citigroup, JPMorgan Chase and Wells Fargo each making $5 billion in uninsured deposits, Goldman Sachs, Morgan Stanley each making deposits uninsured of two and a half billion in BNY Mellon PNC bank state street truest in U.S. bank each making uninsured deposits of a $1 billion for a total, as I mentioned from those 11 banks of $30 billion, and that sent shares a first republic surging about 10% earlier today. We're also hearing that JPMorgan Chase CEO Jamie Dimon did meet with treasury secretary Janet Yellen today in Washington to discuss the steps to shore up first republic. Stocks, as I mentioned, surged on this news, the Dow up 372 points almost 1.2%. The S&P 500 up 68 points up 1.8% and the NASDAQ up 283 points that's almost two and a half percent. The yield on the ten year 3.58% ticking slightly higher spot gold also slightly higher nymex crude, it gained after several days of losses up more than 1% $68 34 cents a barrel. U.S. steel coming out with guidance above estimates and that stock is also something higher. And that is a Bloomberg business flash, Carol and Mike. All right, Denise, thank you so much. Bloomberg business
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"The Dow often, 550 points, that's 1.7%. Let's bring in belly lip shots. He covers the markets for Bloomberg news. He joins us live here in our Bloomberg interactive broker studio, ugly day at their belly. What are you looking at? Yeah, pretty much everything under pressure right now, the big focus is so far are on energy and financials, as you mentioned, and in a morning where you have Goldman Sachs, Wells Fargo and JPMorgan all off, more than 4% of pain really hitting those big banks as well as those regional banks after a report that S&P cut first republic to junk grade. So first republic stock ticker FRC down 12% PAC west and other regional bank that's been trading alongside that down 18% and this all in the face of crude futures right now down more than 4% in trading at the lowest level since December 2021. So a lot of red on the screen. Well, Bailey, it's interesting. This morning, about four hours ago, you're looking at some of the names that you just mentioned. I think we're in the green. And yet, no one is really seeing any more green anymore. You're singing this entire market sell off. And yeah, on top of that, no one is actually calling for recession. No one is talking about systemic risk. I think the consensus here is that this is very isolated to certain banks and to Credit Suisse specifically, why are people freaking out? Well, that's the thing, is that if there's a fully from a vital knowledge, basically said emotion fearing innuendo or driving this not reason and so it's a market right now and where we're seeing this reaction where it's self first ask questions later and it's so interesting when you look at the PPI data we got and where yields are trading right now where you're looking at the interest rate probabilities right now breaking in more about four rate hikes so about a hundred basis point hike that are basically cut sorry from a may peak. So it's such an interesting dynamic right now. Yeah, I mean, how bullish is that if they're going to start really slashing rates there but again, I think what we're seeing here like I was mentioning with Tom earlier, what's a little bit different from a lot different from 2008 for me at least was, man, when that Lehman day hit you knew this was seismic. And you knew it was systemic. Does it feel like that to you? No. Not at all. And so, but I think what the market's trying to figure out right now is, okay, how widespread is it? I mean, let's start doing our homework on lots of other parts of the economy that might be at risk for a fed that has raised interest rates so quickly so much. Is it just little regional banks that may have some idiosyncratic risk or is it something more? And that's what it feels like the market's doing to me today. I don't know. No, without a doubt, and I think the big focus obviously will be on next week's fed meeting and whether they do go with a 25 basis point hike or is that the signal of a pause and how the market would react to that, but as you mentioned, Paul, it really is just a lot of contagion fears and worry over what could be next, but not quite the Lehman crisis where you're more or less kind of dumping and getting out of every trade that you can and maybe piling on to short bets at least the data we've been looking at. It feels a bit more tepid, but just in terms of volume you're looking at right now, we're still about 50% higher on the S&P at this point in time over the last hundred days. So a lot of investors flipping shares getting out of some positions and maybe taking off a bit of risk. Yeah. Bailey, I got to take a moment and not talk about banks for a hot second because I think you were covering something that went under the radar yesterday, which is AMC. And AMC was higher this morning because of some very wonky reverse split stuff. Explain that to us in plain English. Easiest way to look at it yesterday AMC shareholders voted to enable the company. This is the theater operator. Movie theater operator, which was a meme stock still has a meme stock. So it has regular shares, AMC common shares, trade under the ticker AMC, a preferred shares, trade under APE, ape for what the investors like to call themselves. So yesterday they voted to approve two proposals, one would allow it to issue more stock in another that would implement a ten for one reverse split also opening the door for a conversion from 8 preferred shares into those AMC stocks or AMC common stock. So right now you're looking at that spread down below $3 at the end of last month with some of these lawsuits that got close to 6 bucks. So some of this tightening of the spread, but there is still a court hearing next month that could throw all of these trading dynamics out of black. And this has been kind of a meme stock would you say a retailers or ripping it around? I see it Charlie gasparino for Fox business. His Twitter feed is nothing. Like his career has become nothing now other than AMC, just judging by his Twitter feed. Yeah, no, it's one of the biggest core meme stocks. AMC and GameStop really are the big two Bed Bath & Beyond had its kind of moment in the sun, but right now is slowly kind of fading into obscurity. But when you look at AMC, some of these dynamics are simply fascinating, again, they're still close to a $3 spread between the two shares, which at some point will end up being equal, but they're so many different, such a difficult dynamic to short AMC and go long, the ape shares just given that it is a meme stock that could trigger to the upside. All right, you know, look at the dico data today, the producer price index unexpectedly fell today, which again kind of suggests that maybe the fed can go a little bit more dovish than maybe we initially thought, but because people were trying to get a sense of what's going on in terms of inflation, or at least the producer level, maybe a little bit of signs of abatement, if you will. I think when you look at the PPI and pair that with yesterday's wages data, we do see signs that this inflation picture is being tamed kind of what the fed has been really going after. So it will be interesting to see what comes, again, with potential for a 100 basis points in cutting from the peak in May right now, but it is going to be interesting because you are seeing inflation at least for now seeming like it's being tamed though. It is still quite red hot from where we were. And that is the wi R function, the warp. I mean, it changes shape like day to day, and as you mentioned Bailey, right now it's showing the fed funds implied fed funds rate peaking like today. Kind of March somewhere. And then just being a hundred basis points of cuts through the end of
Tech Path Crypto
"first republic stock" Discussed on Tech Path Crypto
"And this is something that almost destroyed USD C and to a certain extent still may have lingering effects on all stablecoins, even though tether looked really strong this weekend. Hopefully you guys were following my lead on the fact that hold until Monday because that was the scenario. This thing is probably going to repay and most likely at that point you can make your decision of whether or not you want to hold USD C other factors that played into this, this, of course, is interesting how big is the, how big is the latest fed bailout, 210 billion for just the big four banks, all right? This would be the kind of bailout would have to happen if we had those kind of scenarios play into this. I mean, and this, I still think, is highly underestimated as to what the real numbers are. This is probably closer to a trillion. And I want you to think about what that means. It's not just the bailouts or even a bail in or being able to subsidize that. They would have to go to Congress and they would have to print money to be able to sustain this. The real factor here is how does the fed react? Because this is going to be a major issue with chair Powell and how he reacts on the next FOMC meeting and how this may align itself into scenarios of what the next interest rate hike if we see one. The other factor that plays into this right now, our regional banks, regional bank stocks right now, you've got western alliance down 75. You've got first republic down 65 Zions, PAC west, commercial. And then, of course, 5th third major bank down 20 in the Midwest. This all plays into it. This was in Los Angeles on a first republic bank. Let me just kind of play this, that's a bank run. That's what those look like guys. If you weren't around in 2008 or all the way
Bloomberg Radio New York
"first republic stock" Discussed on Bloomberg Radio New York
"The 1980s and 90s, John McAfee was a Silicon Valley icon. But after he sold his company and basked in his riches, things took a dark turn. I will not allow them to imprison me and shut my voice down. This season on foundering will retrace the life of John McAfee, listen wherever you get your podcasts. So far, it's pretty calm. Even so material good inflows yesterday still also I had a client meeting which was very positive on that one. So so far it's coming, but I think it's early days It's early days. That was the Credit Suisse CEO, the stock is down by 3.4%. It's just off session lows, two 18, lower the session, record low, two 12 and Credit Suisse stock. They are seeing material good inflows. Yesterday, they will have to get some more detail on that in the coming weeks. The next earnings report comes from Credit Suisse. In about a month from now, they say that we should see some progress in Q one. We'll get that Q one report on April 27th. And as we've said, repeatedly April feels like a very, very long way away in a market moving as quickly as it's moving. Tom and I know you're focused on first republic as well that stock is up nicely. It's another lift session highs up 32% TK. Nice 31 up to 38 ish, maybe 37, I should say and then a nice spike up here as we open up for a Tuesday morning 41 is the last on FRC because of time we're just going to run right to it. David George is senior research analyst at Baird very importantly with decades of experience. David, what are you writing this morning? Let me just cut to the chase. What matters right now for David George? We wrote this morning, Tom. Good morning. Thanks for having me. We believe that this is an asymmetrically positive risk reward for regional bank stocks. In fact, probably the most constructive that we've been since COVID may be even more constructive than that. This is one of the best setups that we have seen in the last 20 I've done this 23 years. And this is an unbelievably good risk reward set up for the stock. What is the skill set to determine that a given bank is not seeing outflows and that that given bank has trust and confidence? Well, part of it is obviously it's difficult to predict customer behavior, but I think something that has gone undiscussed in the financial media is that I don't cover Silicon Valley, but I think it's important to note that they have 220 billion in deposits. Still how many branches they had, 18. Do you know how many branches U.S. bank has? 5000. The average deposits per branch at most U.S. banks is about 15 to 50 million, not 2 billion per office. So the granularity of most U.S. regional banks funding is just infinitely different than the kind of banks that have been reported that have failed. So obviously we are in a period where investors have long memory than there's panic. But that is where you get these asymmetric opportunities. And that's where we are in my opinion. That said, David, there's a very different scenario that is uniform pretty much across all the banking sector, as well as beyond, which is the immediacy of being able to withdraw in real time online. At any time, the ability for there to be a bank run that happens so quickly that even regulators are caught completely off guard. How does that change your risk assessment of smaller banks, especially at a time where cash is paying something and a lot of people are concerned that these banks are not going to be able to deliver. Well, first of all, I am not concerned that maybe that doesn't matter. But the second point, Lisa, the movement of funds into treasuries and higher yielding alternatives, that's been going on for over a year. So that is not a new phenomenon. Now how people feel about that, given where the stocks have been trading is new, but fundamentally, that has been happening for several months and several quarters. In terms of the movement of deposits and things like social media and media like yourself talking about bankers, that's really not that helpful to be honest. To depositors because most customers of regional banks do not have millions of dollars, they've got maybe $5000 in a checking account. Maybe a small business has got a 100,000. They are not focused on this. They are focused on running their businesses. So I just think that the similarities between Silicon Valley and most other, what I would call Main Street banks couldn't be more different. That said, there is this concern about the interest rate risk at a lot of banks. And I am wondering, perspective, putting aside what the media's role is or what investors role is or what the reputational risk is, what about the nuts and bolts potential unrealized losses on the balance sheets of a number of regional banks that haven't necessarily hedged against a dramatic rise in interest rates among all of their assets they use to back those customer deposits. So banks that is part of the Dodd Frank legislation have to own securities as part of what's called the LCR liquidity coverage ratios. And keep in mind, Silicon Valley and banks under 250 billion that are no longer subject to that legislation. All of the big banks that we talk about are all subject to that by the way. That's another thing that has gone on reported and unnoticed and undiscussed. And in terms of the interest rate risk, yes, there are banks that are sitting on securities. These are money good securities, by the way. These are treasuries and MBS that pay has agreed. These are not subprime loans. These are not CEOs. These are money good security. And by the way, deposits have value as well. They are not marked to market either. So despite