No. of Recommendations: 3
Its only a matter of time, many troubled banks will be disclosing bad loans not just duration problems. Three of the troubled banks are headquarter in Cali , one in New York. It's close to a certainty, imo, that material write offs are coming and have not yet been disclosed. Federal Money market funds yielding 4.5-4.75 percent are a safe place to park funds while waiting for the inevitable, next shoe to drop. Based on where the first four American troubled banks are located, obviously , the usual suspects and causes , have caused the bad paper. Watch. In an emergency deal brokered by Swiss authorities, UBS (NYSE:UBS) agreed to scoop up longtime rival Credit Suisse (NYSE:CS) for $3.25B, as regulators attempt to stave off a banking crisis that's quickly spreading across global markets. Without a deal, Credit Suisse would've likely collapsed this week, spreading further financial contagion that began in the U.S. with the implosion of Silvergate Capital (SI), Silicon Valley Bank (SIVB) and Signature Bank (SBNY) (First Republic (FRC) is also facing trouble with additional cuts to its ratings). Further problems were seen later in the week as Deutsche Bank (DB) shares tumbled as the cost of default insurance spiked, while AT1 debt remained under pressure following a $17B write-off that shocked bond investors. Here it comes, again, in spades. Interestingly, so far, Buffett and Berkshire, haven't yet publicly disclosed any major moves, in the banking space. Perhaps over the weekend??
