The DC Today - Monday, March 27, 2023
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
4.9 • 572 Ratings
🗓️ 27 March 2023
⏱️ 14 minutes
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Summary
Today's Post - https://bahnsen.co/3noFOMJ
There is a lot today on Housing, which is a matter of practical significance to a lot of you, and there is a lot today on the banking mess and the Fed, which is also connected to Housing. So I think you’ll find today’s missive practical and interesting.
After reports throughout the weekend that both First Citizens Bank and Valley National Bank were bidding with the FDIC to take over Silicon Valley Bank (both publicly traded, sub-$10bn market cap banks, the former out of North Carolina and the latter from New Jersey), the Monday morning announcement ended up being that First Citizens Bank would be the buyer. I don’t think the ownership of Silicon Valley Bank’s deposits, loans, brand, and locations is that important to markets overall, with the FDIC having already put unlimited depositor protection in place. The final resolution of their capital markets and securities business is more relevant to us at The Bahnsen Group, for a variety of portfolio-related reasons.
And really the final resolution of what will happen with First Republic Bank is the most pressing issue across markets out of the wide array of contenders.
Did you know the market closed at 32,254 the day of the Silicon Valley reports on Thursday, March 9, and closed at 32,238 on Friday, March 24, just two weeks later? In between there were ten days of extreme volatility and one day of light volatility, but from the start point to end point, it was dead. flat. in. the. market. And after today markets are UP since this soap opera began. Go figure.
Links mentioned in this episode: TheDCToday.com DividendCafe.com TheBahnsenGroup.com
Transcript
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| 0:00.0 | Welcome to the DC Today, your daily market synopsis of the Dividing Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets. |
| 0:15.3 | Well, hello and welcome to the Monday edition of DC Today. I am actually recording at my desert house. And I think this might be the first time for DC today that we've ever recorded before the market is closed. If I'm wrong about that, then it's a failure in my memory, which doesn't happen very often. But the market is closing in a little over 30 minutes. |
| 0:38.3 | So we're pretty close to the end of the day. |
| 0:41.0 | So if I say anything that proves to be wrong, it's purely a byproduct of market movement. |
| 0:47.8 | But I kind of just want to go through the whole gamut of things that are in the D.C. |
| 0:52.4 | today, today. |
| 0:54.1 | And then I am, |
| 0:55.1 | the reason I'm recording before market closes is I have to run out to another |
| 0:59.2 | appointment from here. |
| 1:00.3 | And so let's just kind of get into it. |
| 1:02.8 | You know, |
| 1:03.0 | it was a much less exciting weekend than we've been having, |
| 1:07.7 | which I say that is a good thing. |
| 1:09.4 | And in fact, |
| 1:09.9 | it was the subject of the whole dividend cafe on Friday was the recent |
| 1:16.1 | batch of Sunday drama. |
| 1:18.9 | Now, look, first Citizens Bank did surface as the suitor and the prevailer in a bid to purchase Silicon Valley Bank. |
| 1:30.9 | And obviously the FDIC takes the initial losses. |
| 1:35.0 | Silicon Valley pays for the value that's left and takes over the deposits and the loans |
| 1:41.0 | and the locations of the traditional bank. |
| 1:45.1 | And then the securities business and capital markets business, |
| 1:48.5 | the Silicon Valley, is still on the market. |
... |
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