stillsearching

[stillsearching @stuonpoint]

@MoS_Investing In that case good luck diligencing operating managers that allocate capital to align with your investment strategy.

[Bill Ackman @BillAckman]

The @federalreserve should pause on Wednesday. We have had a number of major shocks to the system. Three US bank closures in a week wiping out equity and bond holders. The demise of Credit Suisse and the zeroing of its junior bondholders. Notably, bondholders bearing losses is a new phenomenon as they were protected in the GFC.

@firstrepublic depositors that haven’t left already will not be comforted by today’s stock price performance. This banking crisis remains unresolved and higher rates won’t help.

We don’t yet know where the losses are for investors in these institutions and what the contagion effects may be. Deposits have become unstable. What regional bank is going to commit meaningful capital to new construction or business loans in this context?

The effect of the above is a meaningful tightening of financial conditions that has not yet been visible in light of the rapidly unfolding events of the last two weeks.

Inflation is still a problem and the Fed needs to continue to show resolve. Powell can do this by pausing and making very clear that this is a temporary pause so that the impact of recent events can be assessed. He can make clear that his intent is to resume raising rates at the next meeting unless the banking crisis remains unresolved, and has on its own sufficiently slowed the economy.

I continue to believe that the best course of action is a temporary @FDICgov deposit guarantee until an updated insurance regime is introduced, for if bank number five is closed, the market’s attention will move to banks six, seven and eight.

Unfortunately, the data on every banks assets, liabilities and deposits are publicly available and the stock market has been a perfect indicator of who comes next.

This is not an environment into which the @federalreserve should be raising rates and adding additional pressure on the system as financial stability is the Fed’s first responsibility.

[David Sacks @DavidSacks]

Leading proponent for the “let it burn” camp finally admits what we were dealing with: 200-500 bank failures and that’s just for starters because nobody knows how to stop a bank run when it gets that big. God help us if these angry psychos ever get the wheel.

[Bill Ackman @BillAckman]

I am hearing that @BankofAmerica is going to buy Signature Bank on Monday. Unless and until we can protect uninsured deposits, the cost of capital is going to rise for smaller banks pushing them to merge or be acquired by the SIBs. I don’t think this is good for America.

[stillsearching @stuonpoint]

@MoS_Investing Which is neither here nor there. Take a position with conviction.. lol

[stillsearching @stuonpoint]

@TheProspect @ryanlcooper @jonstewart @TheProblem @AppleTVPlus That’s correct. Businesses are testing the demand elasticity & corresponding price ceiling by passing through price increases well in excess their own inflationary costs, depending on the relative market power they may enjoy in any given niche, sector, geography or channel.

[Nick Timiraos @NickTimiraos]

There is a saying that the Federal Reserve raises interest rates until something breaks. A big surprise over the past year had been that nothing broke.

No more. https://t.co/Pkd3tIVlUs

[stillsearching @stuonpoint]

@MoS_Investing @benbakhshi This is unrelated, so I hope you don’t mind me jumping in. Has $POOL ever shared segmented GM and opex margin data between consumables & equipment, and between Green and Blue? Also, has the management provided ever provided sales breakdown by top 20% of SKUs? Ty

[stillsearching @stuonpoint]

@DavidSacks Wonder what Ackman would say about him now since Ackman endorsed this character not so long ago.

[Nick Timiraos @NickTimiraos]

NEW:

*Signature Bank has been closed

*All depositors of Silicon Valley Bank and Signature Bank will be fully protected

*Shareholders and certain unsecured debtholders will not be protected

*New Fed 13(3) facility announced with $25 billion from ESF to backstop bank deposits

[stillsearching @stuonpoint]

@SBA_Matthias Ah, got it.

[stillsearching @stuonpoint]

@SBA_Matthias Yes, all operating accounts, meaning cash accounts used in normal course of busIness to receive A/R receipts and disburse payables are considered lenders’ collateral and thus covered by the “control agreement”. This is customary, but perhaps not for SBA lenders?

[stillsearching @stuonpoint]

@SBA_Matthias *cash control accounts

[stillsearching @stuonpoint]

@SBA_Matthias ash control accounts are lenders’ collateral , so it’s a reasonable ask by the lender to require the operating accounts to be moved to the lender. Alternatively, lender can have a “control agreement “ with the borrowers’ existing bank , but it’s usually a bigger pain in the neck.

[Genevieve Roch-Decter, CFA @GRDecter]

CEO of Y Combinator Garry Tan: 

“This is an *extinction level event* for startups and will set startups and innovation back by 10 years or more.“

[stillsearching @stuonpoint]

@WallStreetSilv SVB has been an active lender for leverage finance deals backed by PE groups.

[stillsearching @stuonpoint]

@mtracey Perfect.

[stillsearching @stuonpoint]

@CNBC Bravo to our tech companies for successfully lobbying to freeze out competition in order to sustain greater market power.

[stillsearching @stuonpoint]

@conorsen @NateSilver538 That’s called a syndication desk for investment grade credit. If you are an active buyer of paper, you will receive plenty of calls before the deals hit the market.