First Republic Bank files 8-K – Tech only 4% of total deposits; no sector >9%

Post by TheHumanist » Sat, Mar 11, 2023, 2:59 AM UTC

MrFoof wrote: post #6

In general, if anyone wants to go through all the recent 8-K filings, this is what SEC EDGAR is for. Here's a link that'll bring up all recent 8-K filings by date and time, descending: https://www.sec.gov/cgi-bin/browse-edgar?action=getcurrent&d... In general, I would expect a ton of 8-Ks on Monday the 13th for companies to release information on their exposure to SIVB, particularly if their exposure is minor or non-…

Post by NovemberWhiskey » Sat, Mar 11, 2023, 3:00 AM UTC

nemo44x wrote: post #29

scotty79 wrote: post #20

Earlier quoted context omitted.

Why are banks even allowed to buy assets? Every asset is a risk. Banks should have right to do exactly two things. Keep their customers saving and issue loans. There's plenty of risks even in that activity. Every other thing bank does is just piling up risk to unreasonable levels.

I think this was a weird thing where deposit demand was so much greater than loan demand. They had too much money and thought they were doing a safe thing. But failed to consider the time aspect and how rapid interest rate increases nuke them. Banks do provide a valuable service and having them reject deposits isn’t a solution.

Post by Dr_Birdbrain » Sat, Mar 11, 2023, 3:06 AM UTC

bsder wrote: post #14

Dr_Birdbrain wrote: post #9

Earlier quoted context omitted.

Matt Levine reports that the reason they had to buy those low-yield investments that plummeted is because it’s tech-sector customers had too much money in the boom times. Too much deposits means they need to buy a lot of something , and in the boom times that was low-yield stuff.

I'd also like to point out that VCs were telling all their portfolio companies "Pack it in and conserve cash as you're not getting another round." That caused a lot of companies that would otherwise have put their cash into an investment vehicle to instead hold it in their accounts. It will also be interesting to see if someone is going to wind up in jail for initiating the bank run. Someone shared confidential info…

Post by hackernewds » Sat, Mar 11, 2023, 3:09 AM UTC

TheHumanist wrote: post #41

MrFoof wrote: post #6

In general, if anyone wants to go through all the recent 8-K filings, this is what SEC EDGAR is for. Here's a link that'll bring up all recent 8-K filings by date and time, descending: https://www.sec.gov/cgi-bin/browse-edgar?action=getcurrent&d... In general, I would expect a ton of 8-Ks on Monday the 13th for companies to release information on their exposure to SIVB, particularly if their exposure is minor or non-…

Your last line is key... The silent ones are who you should be concerned about, most likely.

Post by hackernewds » Sat, Mar 11, 2023, 3:11 AM UTC

huitzitziltzin wrote: post #38

obblekk wrote: post #5

The fact that they filed a last minute report on a Friday night speaks volumes about the amount of withdrawals they must be experiencing. This is about as strong as a signal they could put out to stop a possible run.

Another interpretation is that this is generally how the FDIC likes to do things: take over on Friday and reopen on Monday. Not sure that will happen in this case but the regulators get two days to prepare to reopen, which at least in recorded US history is seamless and without risk for retail depositors.