U.S. banks borrowed $475 billion last week, but look at the breakdown:
– Large Banks: +$250B
– Small Banks: +$250B
– Foreign-Related Banks: +$25BSmall banks borrowed the same amount as large banks.
Relative to their size small banks borrowed TWICE as much as large banks.
2/7 pic.twitter.com/m3gfdwHs64
— The Kobeissi Letter (@KobeissiLetter) March 25, 2023
New Fed data shows banks lost ~$100 billion in deposits JUST last week.
Here’s the breakdown:
1. Large US Banks: +$67B
2. Small US Banks: -$120B
3. Foreign-Related Banks: -$45BThe worst part is that SVB is a "large bank" in their model, and large banks still added $67B.
4/7 pic.twitter.com/TW6UYNcP5Z
— The Kobeissi Letter (@KobeissiLetter) March 25, 2023
According to the Wall Street Journal, nearly 200 banks are still facing the same issues as SVB.
The crisis has spread to Europe with the collapse of Credit Suisse, $CS, and Deutsche Bank credit default swaps hitting a 4-year high.
Meanwhile, there still is not a solution.
6/7
— The Kobeissi Letter (@KobeissiLetter) March 25, 2023
Last week, Treasury Sec. Yellen said the US was considering backing ALL deposits.
1 day later, she said the US is no longer considering this.
Banks stocks fell with regional bank ETF $KRE making a new low.
Follow us @KobeissiLetter for real time analysis as this develops.
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— The Kobeissi Letter (@KobeissiLetter) March 25, 2023
US banks borrowed $475B last week, while small banks lost over $500B in just two weeks since the collapse of SVB.
$1T has been withdrawn from the most vulnerable banks over the last 2 years, with $500B withdrawn since March 10th.
Small banks borrowed twice as much money as large banks relative to their size.
news.coincu.com/176394-banking-crisis-us-banks-borrow-475b/