BANK OF SPAIN DIRECTOR GENERAL: SPANISH BANKS HAVE DIRECT EXPOSURE TO CREDIT SUISSE OF BETWEEN €300 MLN TO €400 MLN.
— Stockeys (@Stockeys1) March 28, 2023
Bank of Spain sees turmoil rising funding costs, requiring liquidity sourcing review t.co/VqF5MeqyG8 pic.twitter.com/5HHE4mZ8DV
— Reuters Business (@ReutersBiz) March 28, 2023
Bank of Spain board member quits hours after appointment t.co/DaSTUWfeQO #probablyshortesttenureever #spain
— Alex Michaelides/Αλέξανδρος Μιχαηλίδης (@AlexMichaelide3) March 28, 2023
Bank Crisis – The Worst Potential Outcome, Where You Should Put Your Money Now
- Easy money over an extended period of time took the financial world to a situation in which rapidly rising interest rates exposed disastrous flaws in risk management in several banks.
- Need to mark Treasury losses to market combined with overly concentrated clients/depositors made the position of Silicon Valley Bank untenable and left questions about whether to guarantee all deposits.
- Unsurprisingly, Crypto and Venture Capital triggered the end of cycle decline in February 2021 and all three major bank collapses; cheap money had enabled dubious assets and low quality start-ups.
- Potential bank investors must now add criteria like concentration of customers and depositors, percentage of uninsured deposits, and the mix of loans and bonds.
- The rise in rates has made fixed income attractive and revived the 60/40 portfolio. Treasury yields are off their peak, but CDs may greatly enhance safe yields while money market funds have great rates.
LATEST: Bank of Spain Director General has stated that banks and clients have been channelling deposits to investment funds for some time.
— Paryte (@Parytecom) March 28, 2023
Dont forget to update your bingo card! pic.twitter.com/drVYz8ON7o
— Jack Straw (@JackStr42679640) March 23, 2023