Negotiations taking place to rescue CS? Another bailout coming?
5 replies (most recent on top)
Honestly, regulators seem clueless. Many banks overloaded on long term Mortgage backed securities and treasuries. That exposed them to interest rate risk. For all the countless hours and tests of regulators, not sure why this risk, in plain sight, did not result in a warning flag. You might say that some banks were below a 250B threshold for certain regulation, but many others were not. Regulators put huge encumbrances on institutions, that require a lot of expense and red tape ( look how much Schwab spends on all this) and for all that a simple risk in plain sight was missed.
Don’t be ridiculous! That’s exactly how panic starts ...id--ts like you saying stupid things like that. And vulnerable people believing that without doing their own financial research. Regulations should be in place for a reason. Bank deregulation helped svb chaos. Schwab has regulations in place, and perpetual daily internal audits Throughout the company To ensure safety. Can something happen ...yes, there is always uncertainty,but Schwab has Safety nets in place assets protected, Billions of assets to cover anything, and no one in high places with stupid greed. J.P. Morgan....hahaha that is so ludicrous,thanks for the laugh!
Sometimes you don't need a lot to go wrong. You just need some stuff to go wrong and panic to take over. Hope nothing like that comes to pass. I plan on moving my cash into my Schwab account. I realize it's a drop in the ocean.
Anything’s possible? Charles Schwab has access to a lot of capital, that is without dispute. Some capital will be nastier to the P&L that others. A bailout in the form of a merger is not inconceivable, but there’s a lot more that’d have to go wrong first, starting with massive “realized” losses, not just paper. But the likelihood of massive interest rate cuts to boost everyone’s portfolios is extremely unlikely. As long as 2% inflation targets are the gospel of money, rates will rise as high as possible to make that a reality.
source?