• May 01, 2023
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  3 banks have gone out of business. That's 'systemic.'

  
  

  Fed raised rates which simultaneously reduced the value of small banks existing holdings (treasuries, auto loans, mortgages, student loans), while raising the cost for the banks of having their deposits. - Dick Bove

  
  

  "At some point you cross the two lines." You've driven the cost of gathering funds to a level at which the yield on existing assets cannot pay for it, and that forces banks out of business. (SNL, and current)

  
  

  
  

  
  
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  <div>3 banks have gone out of business. That's 'systemic.'</div><div><br></div><div>Fed raised rates which simultaneously reduced the value of small banks existing holdings (treasuries, auto loans, mortgages, student loans), while raising the cost for the banks of having their deposits. - Dick Bove</div><div><br></div><div>"At some point you cross the two lines." You've driven the cost of gathering funds to a level at which the yield on existing assets cannot pay for it, and that forces banks out of business. (SNL, and current)</div><div><br></div><div><br></div><div><br></div>

  3 banks have gone out of business. That's 'systemic.'

  
  

  Fed raised rates which simultaneously reduced the value of small banks existing holdings (treasuries, auto loans, mortgages, student loans), while raising the cost for the banks of having their deposits. - Dick Bove

  
  

  "At some point you cross the two lines." You've driven the cost of gathering funds to a level at which the yield on existing assets cannot pay for it, and that forces banks out of business. (SNL, and current)

  
  

  
  

  
  

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