So this is being discussed right now, I believe, and we will know more after the close.ĭAVE BRIGGS: Are you surprised that the report from the Journal on JP Morgan, they would not send shares back the other way and give the markets, give investors some relief?ĭAVID LONG: Yeah, these types of things typically happen when the market is closed. So plan C could be some sort of equity injection, and maybe that deposit changes into an equity injection by these 11 banks. Then we had case B, or step B, I should say, with the injection of $30 billion into First Republic.Īnd here we are today talking about potentially C with First Republic, and that $30 billion in deposits that came from the 11 larger banks may not be enough to keep them in good standing here. And that was supposed to give the depositors confidence that the banks would backstop deposits that were not insured. And we've had Step A by the regulators with the introduction of the bank term funding program. ![]() And I think what this shows us is that this crisis is not over yet. ![]() Well, if you take a step back and look at the news over the weekend that came with the Swiss banking system with UBS sort of bailing out Credit Suisse, if you will, after a $50 billion injection last week, you look back at- or you look at the First Republic situation, and they got their own $30 billion infusion last week. Is it necessary? What your reaction to this report?ĭAVID LONG: Sure. Now there are reports of another effort underway to stabilize the bank. ![]() So ahead of this news today, you downgraded First Republic last week. We want to bring in David Long, Raymond James managing director of equity research.
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