Tag Archives: Banking collapse

Dec 1 2023

Bank Acquisitions Coming 


Posted Originally on Dec 1, 2023 By Martin Armstrong 

Bank Broken

A recent report by KBW Regional Banking Index (KBW) suggests that Comerica, Zions, and First Horizon are at risk of being acquired by greater competitors. Larger banks with strong returns, such as Huntington, Fifth Third, M&T, and Regions Financial, are positioned to grow by acquiring smaller lenders. Additionally, KBW analysts noted that Western Alliance and Webster Financial could also consider selling themselves. The report highlights that regional banks with assets between $80 billion and $120 billion are facing increasing pressure on returns and profitability, making them potential targets for acquisition by larger rivals.

This analysis underscores the challenges faced by banks in this asset range, as they have the lowest structural returns among banks with at least $10 billion in assets, necessitating growth to help pay for upcoming regulations. The report also mentions that banks with higher returns, such as East West Bank, Popular Bank, and New York Community Bank, could end up as acquirers rather than targets. This analysis reflects the evolving landscape of the banking industry and the potential for consolidation among regional banks.

Three banks have already collapsed in the US this year. New proposed regulations would require banks with over $100 billion in assets to hold onto long-term debt equal to 3.5% of total assets or 6% of risk-weighted assets. Now banks just below the $100 billion mark will potentially face the burden of adhering to these new regulations. Regional bank shares have fallen by over 20% this year. Smaller banks are already struggling to remain profitable, while midsized banks will be forced to join a larger banking organization to stay afloat.

Nov 26 2023

Col. MacGregor’s Dire Warning: “I Think The Banks Are Going Down For 2-3 Weeks”


POsted originally on Rumble on: Man in America Nov 6, 9:00 pm EST

Sep 22 2023

US Govt Shutdown Over Ukraine?


Armstrong Economics Blog/Politics Re-Posted Sep 22, 2023 by Martin Armstrong

https://youtube.com/watch?v=0psU3ecVUC0%3Ffeature%3Doembed

It happens every year – the US Congress cannot disagree so they may simply shut down. They’re our public servants but we permit them to throw their hands up and shrug that they cannot work together. One of the hot topic items right now is Ukraine, and with good reason as we are $3.3 trillion in debt but those in charge believe we have unlimited funds for Ukraine.

https://x.com/RandPaul/status/1704485590085812595?s=20

Senator Rand Paul refuses to continually aid Ukraine in the proxy war. “Today I’m putting congressional leadership & @POTUS on notice that I will oppose any effort to hold the federal government hostage for Ukraine funding,” Paul said on X, the social media platform formerly known as Twitter. “I will not consent to expedited passage of any spending measure that provides any more US aid to Ukraine.” Rand double-downed on his views in front of his peers, saying, “It’s as if no one has noticed that we have no extra money to send to Ukraine,” he said. “Our deficit this year will exceed $1.5 trillion. Borrowing money from China to send it to Ukraine makes no sense.”

We do not have the money to spend on Ukraine – period. The money funneled to the most corrupt European country comes from US taxpayers. Biden asked for another $24 billion for Ukraine last month. Some Republicans scoffed but there are neocons on both sides who want this war. “When will the aid requests, and when will the war end?” Rand asked the Senate. “Can someone explain what victory in Ukraine looks like? President Biden certainly can’t. His administration has failed to articulate a clear strategy or objective in this war, and Ukraine’s long-awaited counteroffensive has failed to make meaningful gains in the east.” There is no victory for Ukraine. The aftermath will be bloody and expensive, and people on both sides of the fight have declared that this will be a long war.

Republicans are a minority in the Senate. Schumer will do what it takes to push through all of Joe’s reckless spending budgets that he always exceeds. Congress needs to be held accountable. A business couldn’t simply say, “Hey, we do not know what to do. Let’s shutdown operations until we figure it out.” The No Pay for Congress During Default or Shutdown Act introduced by Brian Fitzpatrick (R-PA), and Abigail Spanberger, (D-VA), that would prevent members of Congress from receiving a paycheck in the event of a shutdown. Imagine that – having to work for your pay! James Lankford (R-PA) introduced a stricter bill dubbed the Prevent Government Shutdowns Act of 2023 that would forbid these politicians from returning home until a final decision is made. There are numerous measures on the table that should be signed into law to prevent lazy government workers from holding the United States hostage.

Let us not forget that America’s credit rating was downgraded by Moody’s because our politicians are incapable of running the country. Smart money has fled the public sector. There is absolutely no confidence in government anymore. The hundreds of billions to Ukraine must stop. One must wonder why government would threaten to shutdown over the topic of funding a foreign unaffiliated nation when the war does not benefit Americans in any way.

Sep 3 2023

Interview: Martin Armstrong Predictions / Digital Currency & The End of Your Liberty


Armstrong Economics Blog/Armstrong in the Media Re-Posted Sep 3, 2023 by Martin Armstrong

https://youtube.com/watch?v=8f74JxHcyvQ%3Ffeature%3Doembed
Aug 10 2023

Moody’s Slashes Bank Ratings


Aemstrong Economics Blog/Banking Crisis Re-Posted Aug 10, 2023 by Martin Armstrong

Moody’s has cut the credit ratings of ten small and mid-sized banks. The agency cited higher funding costs, rising interest rates, and increased risked due to the failing commercial real estate sector. M&T Bank, BOK Financial, Webster Financial, Pinnacle Financial, Old National Bancorp, and Fulton Financial were among the banks that received downgraded ratings.

But it does not stop there. Moody’s is also reviewing six giant banks, including Trist Financial, Bank of New York, Cullen/Frost Bankers, State Street, Northern Trust, and US Bancorp, as they may also be downgraded. Eleven other banks such as Capital One, Citizens Financial, and Fifth Third Bancorp has their ratings changed to negative. Moody’s predicts a “mild recession” on the horizon for 2024. They believe the quality of assets will decline with certain banks facing increased risks due to their commercial real estate (CRE) portfolios.

“U.S. banks continue to contend with interest rate and asset-liability management (ALM) risks with implications for liquidity and capital, as the wind-down of unconventional monetary policy drains systemwide deposits and higher interest rates depress the value of fixed-rate assets,” Moody’s analysts wrote in an accompanying research note explaining the decision. The agency also noted that investors are vulnerable “to a loss of confidence.”

The US banking system is failing. Moody’s noted that rising interest rates would “exacerbate” the ongoing banking crisis, and they foresee the Federal Reserve continuing with hikes for longer than anticipated since inflation was never transitory. The Fed maintained artificially low rates for too long, and their attempts to ease inflation by hiking rates are failing, as is the ECB’s. We will see the behemoths like JPMorgan Chase sypher in failing banks, making it easier for agencies to switch to CBDC. European banks will be the first to fail, so keep an eye on Europe.