For the first time ever in Los Angeles, people were seen making bank runs as the Silicon Valley banks started plummeting in value on the market.
First Republic Bank stock trading was halted for the second time. This happened in just a few days as company shares dipped by another 50% this time around, causing hundreds of thousands of Americans to face unprecedented losses.
The economic downturn in full view
The Q1 tumble was somewhere around 40%.
This is still more than the analysts at Wall Street expected and the second dip blew the whole thing out of the water, with deposits dropping to record lows.
Most are terrified to have 1% of assets as #Bitcoin for fear it will CRASH as this chart looks.
Same humans will willingly hold a basket of stocks in an index with a dozen bank stocks.
This chart is First Republic Bank.
If you own S&P 500, you were exposed to this chart. pic.twitter.com/qiVZNNghTf
— Luke Broyles (@luke_broyles) April 26, 2023
Q1 reports show deposits sitting just below $105 billion and even though the bank assured they’d be stabilizing, no such thing happened.
If things keep going at this pace, the bank may end up being seized by the US government. The threat alone was enough to incite mass panic for anyone who’s got their savings at the First Republic.
CNBC reported the bank will be forced to make some large budget cuts in order to offset these losses. There are already projections of over 25% of the bank’s workforce being let go, with office space downsizing as well.
It’s hard to say no one could’ve seen this coming, though. The S&P index practically reduced the First Republic Bank to a heap of rubble, and what followed was only a natural course of events.
🚨 BREAKING NEWS 🚨
First Republic Bank ($FRC) got a $30Billion rescue package just 37 days ago. 🤯
What the hell did they do with $30Billion ($30,000,000,000) in 37 days. pic.twitter.com/rUae5CMwsQ
— 🏴☠️ G-MAN 🏴☠️ (@GavinClimie) April 26, 2023
Spokesmen from S&P claimed that the bank’s continued increase of borrowing ability paired with the current risk of deposit outflow is what led to the First Republic’s failure.
Is there hope for US banks?
That being said, if the deposit outflow continues at a steady pace, the bank will be forced to rely on their wholesale borrowings instead, which are generally much more costly.
Not only would this have an impact on the bank’s balance sheet, but it would also greatly reduce its profitability.
The executives at the bank managed to get their fair share, though. Records show over $12 million in company stock was sold not long before the shares dipped in value. This is hinting that higher-ups at First Republic Bank knew what was coming from a mile away.
“It’s going to be catastrophic”
Former Blackrock acc manager tells Bannon more bank failure to come in the wake of First Republic Bank, SVB, Signature bank, Credit Suisse falling.
The Biden media is fooling folks into believing everything is ok. Many will be caught off guard pic.twitter.com/99ss1DywMK
— Melissa Tate (@TheRightMelissa) April 26, 2023
On the other hand, the bank’s customers weren’t so lucky. One could see hundreds of people lined up outside the many local branches of the bank, withdrawing their hard-earned money before it evaporates.
US banks haven’t been performing too well recently and the gold run from a few months ago could’ve been a good indicator of an incoming crisis.
The Biden administration has effectively run this country into the ground and will continue doing so as long as he’s in office.
No matter what angle you’re looking at the US from, the country is in a state of chaos. Between the economic crisis and the never-ending waves of illegal immigrants flowing into the country, it’s hard to find a way to remain hopeful about the future our children will be getting.This article appeared in Our Patriot and has been published here with permission.