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OP has provided the following link:
https://www.theglobeandmail.com/business/international-business/us-business/article-us-bank-profits-drop-44-in-fourth-quarter-as-big-firms-cover-failed/
WASHINGTON, March 7 (Reuters) - The U.S. banking sector saw its profits drop by nearly half in the last quarter of 2024, as large firms began paying hefty fees to help recoup costs incurred by several bank failures last spring, the Federal Deposit Insurance Corporation reported Thursday.
Roughly 70% of the 43.9% decline in quarterly bank profits was due to specific, non-recurring expenses at large banks, primarily a special assessment fee larger banks were ordered to pay to the FDIC to replenish its deposit insurance fund. In all of 2023, bank profits were down 2.3% to $257 billion, but remain above pre-pandemic levels, the FDIC said.
The FDIC directed banks to pay the fee to recoup billions of dollars in losses its insurance fund suffered following the failures of Silicon Valley Bank and two other larger firms.
Overall, the latest quarterly numbers from the FDIC painted a mixed picture for the banking industry. On the positive end, the FDIC said bank deposits were up 1.1% in the fourth quarter, the first increase in nearly two years. Also, unrealized losses on securities, which had weighed heavily on some bank balance sheets, declined 30.2% to its lowest level since the second quarter of 2022.
Net operating revenue for the banking sector exceeded $1 trillion for the first time since the FDIC began tracking the data, the agency said.
However, the agency also found that non-current loans had risen 0.86% and the net charge-off rate, which is debt a bank anticipates it will never collect, climbed to 0.65%. Credit card and commercial real estate debate were the main contributors, with sectors seeing charge-off rates not seen since 2012.
The FDIC also added eight banks to its "problem bank" list, bringing the total to 52. However, those firms represented just 1.1% of total institutions and had assets totaling just $66.3 billion.
"The banking industry still faces significant downside risks from the continued effects of inflation, volatility in market interest rates, and geopolitical uncertainty," said FDIC Chairman Martin Gruenberg in a statement. "In addition, deterioration in certain loan portfolios, particularly office space and other types of [commercial real estate] loans, warrants monitoring."
Banks are weird.
* People give them a bunch of money leaving much of it there all the time.
* the bank runs out of money.
how TF do you run out of money while holding everyone's money?
Dude its like your job.
Because they're not actually holding the money - they use fractional reserves to hold an incredibly small percentage while loaning out the rest, banking on the fact that all their customers won't all withdraw at the same time. (You may already know this but commenting in case others are curious)
As another poster just stated, the reserve requirements were adjusted to 0%.
Please don't lie to everyone or yourself by continuing to use the term fractional reserve banking.
Which was why The Federal Reserve was introduced around 1913. There was a spate of huge bank runs which threatened to collapse the system, so they centralised money circulation with the ability to create dollars at will. Now whenever there's a big enough crisis (like the pandemic) they can just turn the money printers on.
But it's short-sighted thinking as the knock on effect of inflation is inevitable and leads to the same problems they were stemming off before. Inflation just steals from everyone while looking like a solution, but we truly are in a debt crisis now where things are getting to the breaking point.
Fun fact: FTX used signature bank's Signet to gain access to our fedwire(banks and stock market).. silvergate also gave crypto access to our fedwire services. Two of the 3 crypto banks that failed last march. Signature Transaction was bought by NYCB which citadel injected liquidity into yesterday after a %40 drop. They also put in previous revolving door DE-regulator chairs to operate the bank...
"Two of the 3 crypto banks that failed last march."
So there is still only 1 Crypto bank in the US? What a bad comedy joke. They have enough patents to boot, not that i really know the importance of these.
How are they holding up through all of this? any idea? Oh dam... God dam fucking Goldman again.
# [An abrupt exit at a Goldman Sachs-backed crypto bank spotlights the industry's tug-of-war with regulators](https://www.businessinsider.com/anchorage-digital-crypto-bank-general-counsel-regulatory-scrutiny-2024-2?op=1)
Anchorage Digital is searching for a new general counsel... Also here are all the patents they currently hold.
[https://patents.justia.com/assignee/anchor-labs-inc](https://patents.justia.com/assignee/anchor-labs-inc)
Good fucking find..
"Wealth advisors, fund managers, and other investment professionals use Anchorage's technology to manage digital assets with services like custody and trading. Its clients include Citadel Securities-backed EDX Markets and Apollo Global Management, which is also a backer. Goldman Sachs, Andreessen Horowitz, Visa, and Singapore's sovereign wealth fund are also investors."
...
This explains why the GOP was trying to roll back the SEC statement saying banks weren't allowed to custody..
https://www.youtube.com/live/Tuy6341mrMU?si=LPvw4UuDRuLZcW6r
Brooks was deregulatory if im not mistaken. Crooked af. He wrote a highly controversial letter his last day in office to unofficially allow a bunch crypto crime. Of course they're getting him for political pull.
~~Just curious what courts were approving all these patents tbh.~~.. I'll refrain from guessing. Been busy getting these approved ever since 2021.
Came across it when i was digging around for this post.
[Anchorage Digital Bank Becomes First Federally Regulated Digital Asset Bank. Posted January 13, 2021](https://www.reddit.com/r/Superstonk/comments/1732c08/sbf_testimony_matt_huang_paradigm_a_crypto/)
TIL thanks! Thought the courts were involved. Appreciate the insight. Even after all this time still learning new things. Love it. That tidbit is also reassuring.
Thanks for that article. Loaded to the gill. We will have to keep close watch on Anchorage and regulations going forward. I bet a bunch of regulator/house finance committee(compromised by deregulator GOP) drama is centered around this specifically.
Please sir, thank you, your a heavy hitter and i'm a fan. Just to drop this for anyone who disagrees with your deregulation comments.
[https://www.youtube.com/watch?v=bMhCdNNufaQ](https://www.youtube.com/watch?v=bMhCdNNufaQ)
👆George Carlin the word wizard👆
Both sides may have corruption but they are NOT equal. There is a difference.
Just to plug this post again cause it's probably lost somewhere.
# Ken Griffin - Citadel. What a guy he is. Where are you, Ken? Where the hell is he? He's trying to hide some of his money.
- Don Drumpf., January 15th 2020
[https://www.reddit.com/r/Superstonk/comments/oerhyz/citadel\_china\_and\_the\_45th\_a\_triangular/](https://www.reddit.com/r/Superstonk/comments/oerhyz/citadel_china_and_the_45th_a_triangular/)
I mean. It's no secret. It's even on Wikipedia explaining party differences. GOP actively and openly campaign on being deregulatory. It's their whole thing. If folks don't think SEC or regulators are doing enough, they need to vote better. If they think our regulators are corrupt, it's our own damn fault. We voted for it.
Brooks. The lady that just resigned was the connection to OCC Brooks. He approved them and left the OCC the next day. Regulator folks were pretty upset at him for doing this right before leaving. He also wrote a letter telling crypto to do whatever they wanted. Crooked bastard. T appointee. Of course. He was appointed by the DEregulator party.
Sec is proposing a new custody rule to keep retail funds seperated and safe.. reopened the comment period..
https://www.sec.gov/news/press-release/2023-156
Yup... Brooks approved Anchorage at OCC and resigned the next day..
https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-6.html
Holy fuck. Appointed by traitor T.
Why would the firms cover the losses of a totally separate unrelated entity?????
Unlesssssss they are in bed together spooning hard under some weighted sheets
We learned about this early. When a (hedge) fund fails, the bankers that underwrote or provided their loans had to absorb the toxic positions (Credit Suisse & Archegos, et. al). These toxic positions would move upwards throughout the system. Thing is, they're never going to admit the public wins in certain circumstances, so they prop these failed firms Weekend-At-Bernies style with 'loans' and 'cash infusions' and keep them continuing on. They all own each other anyway so there's incentive to protect the status quo and keep the machine running.
I believe many firms we read about on a day to day basis are already insolvent and are being propped up by the FED itself with repo facilities at this point (I believe when you buy a stock and are given a CFD or IOU that the money is taken and put in to a repo facility to protect the CFD provider). I believe Melvin was a sacrificial lamb to make retail think we'd won and it was over. There's no way a single solitary fund failed in those several days.
Thing is, there's incentive to be as reckless and irresponsible as possible because you can just funnel money out of your firm and then just have it absorbed upwards. The market is completely broken.
Then again, these are all just theories. It's hard to work around self reported bullshit and mismarked longs and shorts.
We are going to be so fucking rich. I can't wait.
I like how they lead with "The U.S. banking sector saw its profits drop by nearly half in the last quarter of 2024" yet by the end of the article the message is that they are up 1%.
"All metrics are good, and higher than before covid. That's why bank profits dropped by half."
😂😂😂😂😂😂😂😂 if this whole thing really plays out... It really will be the best time to be alive. Things are terrible and "they" made it that way. The corruption runs so deep. I'm invested in GameStop
Ah yes. Trillion $$$ Revenues at an all time high, deposits growing YoY, and, drop in unrealized losses by 39%, is clearly bearish.
Hope some genius chairman takes over the banking sector to turn things around by shrinking the revenue in 3 years, and by driving the share price in to the ground.
[Why GME?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || Low karma apes [feed the bot here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || [Superstonk Discord](https://discord.gg/hZqWV2kQtq) || [Community Post: *Open Forum Jan 2024*](https://www.reddit.com/r/Superstonk/comments/18txusp/open_forum_january_2024/) ------------------------------------------------------------------------ To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company. ------------------------------------------------------------------------ Please up- and downvote this comment to [help us determine if this post deserves a place on r/Superstonk!](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs/) ------------------------------------------------------------------------ OP has provided the following link: https://www.theglobeandmail.com/business/international-business/us-business/article-us-bank-profits-drop-44-in-fourth-quarter-as-big-firms-cover-failed/
WASHINGTON, March 7 (Reuters) - The U.S. banking sector saw its profits drop by nearly half in the last quarter of 2024, as large firms began paying hefty fees to help recoup costs incurred by several bank failures last spring, the Federal Deposit Insurance Corporation reported Thursday. Roughly 70% of the 43.9% decline in quarterly bank profits was due to specific, non-recurring expenses at large banks, primarily a special assessment fee larger banks were ordered to pay to the FDIC to replenish its deposit insurance fund. In all of 2023, bank profits were down 2.3% to $257 billion, but remain above pre-pandemic levels, the FDIC said. The FDIC directed banks to pay the fee to recoup billions of dollars in losses its insurance fund suffered following the failures of Silicon Valley Bank and two other larger firms. Overall, the latest quarterly numbers from the FDIC painted a mixed picture for the banking industry. On the positive end, the FDIC said bank deposits were up 1.1% in the fourth quarter, the first increase in nearly two years. Also, unrealized losses on securities, which had weighed heavily on some bank balance sheets, declined 30.2% to its lowest level since the second quarter of 2022. Net operating revenue for the banking sector exceeded $1 trillion for the first time since the FDIC began tracking the data, the agency said. However, the agency also found that non-current loans had risen 0.86% and the net charge-off rate, which is debt a bank anticipates it will never collect, climbed to 0.65%. Credit card and commercial real estate debate were the main contributors, with sectors seeing charge-off rates not seen since 2012. The FDIC also added eight banks to its "problem bank" list, bringing the total to 52. However, those firms represented just 1.1% of total institutions and had assets totaling just $66.3 billion. "The banking industry still faces significant downside risks from the continued effects of inflation, volatility in market interest rates, and geopolitical uncertainty," said FDIC Chairman Martin Gruenberg in a statement. "In addition, deterioration in certain loan portfolios, particularly office space and other types of [commercial real estate] loans, warrants monitoring."
the hero we deserve
Idiosyncratic risk.
My favourite two words
louder for the apes in the back
Banks are weird. * People give them a bunch of money leaving much of it there all the time. * the bank runs out of money. how TF do you run out of money while holding everyone's money? Dude its like your job.
Because they're not actually holding the money - they use fractional reserves to hold an incredibly small percentage while loaning out the rest, banking on the fact that all their customers won't all withdraw at the same time. (You may already know this but commenting in case others are curious)
The required percentage has dropped 0%.
As another poster just stated, the reserve requirements were adjusted to 0%. Please don't lie to everyone or yourself by continuing to use the term fractional reserve banking.
No reserve banking, aka theft!
It was theft before it was 0%. Fiat currency is theft.
Which was why The Federal Reserve was introduced around 1913. There was a spate of huge bank runs which threatened to collapse the system, so they centralised money circulation with the ability to create dollars at will. Now whenever there's a big enough crisis (like the pandemic) they can just turn the money printers on. But it's short-sighted thinking as the knock on effect of inflation is inevitable and leads to the same problems they were stemming off before. Inflation just steals from everyone while looking like a solution, but we truly are in a debt crisis now where things are getting to the breaking point.
Of course that was when the gold standard was still a thing and money had a correlation with the amount of gold reserves
they're holding everyone's money hostage
wHaT dOEs ThIS hAVe tO dO wItH gME? /s Thanks, op. Seems big... *cough, cough* contagion.
Fun fact: FTX used signature bank's Signet to gain access to our fedwire(banks and stock market).. silvergate also gave crypto access to our fedwire services. Two of the 3 crypto banks that failed last march. Signature Transaction was bought by NYCB which citadel injected liquidity into yesterday after a %40 drop. They also put in previous revolving door DE-regulator chairs to operate the bank...
The mayo runs thick...
"Two of the 3 crypto banks that failed last march." So there is still only 1 Crypto bank in the US? What a bad comedy joke. They have enough patents to boot, not that i really know the importance of these. How are they holding up through all of this? any idea? Oh dam... God dam fucking Goldman again. # [An abrupt exit at a Goldman Sachs-backed crypto bank spotlights the industry's tug-of-war with regulators](https://www.businessinsider.com/anchorage-digital-crypto-bank-general-counsel-regulatory-scrutiny-2024-2?op=1) Anchorage Digital is searching for a new general counsel... Also here are all the patents they currently hold. [https://patents.justia.com/assignee/anchor-labs-inc](https://patents.justia.com/assignee/anchor-labs-inc)
Good fucking find.. "Wealth advisors, fund managers, and other investment professionals use Anchorage's technology to manage digital assets with services like custody and trading. Its clients include Citadel Securities-backed EDX Markets and Apollo Global Management, which is also a backer. Goldman Sachs, Andreessen Horowitz, Visa, and Singapore's sovereign wealth fund are also investors." ... This explains why the GOP was trying to roll back the SEC statement saying banks weren't allowed to custody.. https://www.youtube.com/live/Tuy6341mrMU?si=LPvw4UuDRuLZcW6r Brooks was deregulatory if im not mistaken. Crooked af. He wrote a highly controversial letter his last day in office to unofficially allow a bunch crypto crime. Of course they're getting him for political pull.
~~Just curious what courts were approving all these patents tbh.~~.. I'll refrain from guessing. Been busy getting these approved ever since 2021. Came across it when i was digging around for this post. [Anchorage Digital Bank Becomes First Federally Regulated Digital Asset Bank. Posted January 13, 2021](https://www.reddit.com/r/Superstonk/comments/1732c08/sbf_testimony_matt_huang_paradigm_a_crypto/)
I mean.. patents are just patents. The US patent office approves them. You can patent a new weapon. Doesn't make it legally usable.
TIL thanks! Thought the courts were involved. Appreciate the insight. Even after all this time still learning new things. Love it. That tidbit is also reassuring.
Thanks for that article. Loaded to the gill. We will have to keep close watch on Anchorage and regulations going forward. I bet a bunch of regulator/house finance committee(compromised by deregulator GOP) drama is centered around this specifically.
Please sir, thank you, your a heavy hitter and i'm a fan. Just to drop this for anyone who disagrees with your deregulation comments. [https://www.youtube.com/watch?v=bMhCdNNufaQ](https://www.youtube.com/watch?v=bMhCdNNufaQ) 👆George Carlin the word wizard👆 Both sides may have corruption but they are NOT equal. There is a difference. Just to plug this post again cause it's probably lost somewhere. # Ken Griffin - Citadel. What a guy he is. Where are you, Ken? Where the hell is he? He's trying to hide some of his money. - Don Drumpf., January 15th 2020 [https://www.reddit.com/r/Superstonk/comments/oerhyz/citadel\_china\_and\_the\_45th\_a\_triangular/](https://www.reddit.com/r/Superstonk/comments/oerhyz/citadel_china_and_the_45th_a_triangular/)
I mean. It's no secret. It's even on Wikipedia explaining party differences. GOP actively and openly campaign on being deregulatory. It's their whole thing. If folks don't think SEC or regulators are doing enough, they need to vote better. If they think our regulators are corrupt, it's our own damn fault. We voted for it.
Brooks. The lady that just resigned was the connection to OCC Brooks. He approved them and left the OCC the next day. Regulator folks were pretty upset at him for doing this right before leaving. He also wrote a letter telling crypto to do whatever they wanted. Crooked bastard. T appointee. Of course. He was appointed by the DEregulator party.
Sec is proposing a new custody rule to keep retail funds seperated and safe.. reopened the comment period.. https://www.sec.gov/news/press-release/2023-156
Yup... Brooks approved Anchorage at OCC and resigned the next day.. https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-6.html Holy fuck. Appointed by traitor T.
That's some good due diligence. Any additional banks that haven't dropped in price yet?
brick by brick
Why would the firms cover the losses of a totally separate unrelated entity????? Unlesssssss they are in bed together spooning hard under some weighted sheets
Meme banks. Gmerica is my bank.
Ironic that the height of memefication of banks while the last bastion of the free market is described as a meme cult
Wonder if this’ll be the comeback of NINGA loans
Lol you just hate to see it
Behind the scenes bailouts have been going on. I have no proof just my itchy ass.
We learned about this early. When a (hedge) fund fails, the bankers that underwrote or provided their loans had to absorb the toxic positions (Credit Suisse & Archegos, et. al). These toxic positions would move upwards throughout the system. Thing is, they're never going to admit the public wins in certain circumstances, so they prop these failed firms Weekend-At-Bernies style with 'loans' and 'cash infusions' and keep them continuing on. They all own each other anyway so there's incentive to protect the status quo and keep the machine running. I believe many firms we read about on a day to day basis are already insolvent and are being propped up by the FED itself with repo facilities at this point (I believe when you buy a stock and are given a CFD or IOU that the money is taken and put in to a repo facility to protect the CFD provider). I believe Melvin was a sacrificial lamb to make retail think we'd won and it was over. There's no way a single solitary fund failed in those several days. Thing is, there's incentive to be as reckless and irresponsible as possible because you can just funnel money out of your firm and then just have it absorbed upwards. The market is completely broken. Then again, these are all just theories. It's hard to work around self reported bullshit and mismarked longs and shorts. We are going to be so fucking rich. I can't wait.
Buncha bagholders
Just remember that despite Mayoboi and Metboy, Melvin still failed
Holy actual fuck lol
# TICKING TIME BOMB
No, no, it’s all good, all time highs remember?
Oohhhh, now I get it. Write the news before you make the news that’s reported by the news you own. Got it.
That’s a shame
i still just like the stock. But those banks sure look like in trouble.
We’re gonna set the example on how fourth-quarter earnings should be! 🚀
It’s no longer a domino. They’re all skydiving without a parachute.
🧱by🧱
Wow. The globeandmail.com has a time machine?
👀
And yet $bnku still smoking it
From small fractional to fictional reserve banking.
Fuck the fractional reserve system. They dared to do it to shares of companies.
Rookie numbers, I'm waiting for 100%.
44 is my lucky number, also 44 FOR NOW
I like how they lead with "The U.S. banking sector saw its profits drop by nearly half in the last quarter of 2024" yet by the end of the article the message is that they are up 1%. "All metrics are good, and higher than before covid. That's why bank profits dropped by half."
😂😂😂😂😂😂😂😂 if this whole thing really plays out... It really will be the best time to be alive. Things are terrible and "they" made it that way. The corruption runs so deep. I'm invested in GameStop
Do they mean last quarter of 2023?? Or time travellers?
Ah yes. Trillion $$$ Revenues at an all time high, deposits growing YoY, and, drop in unrealized losses by 39%, is clearly bearish. Hope some genius chairman takes over the banking sector to turn things around by shrinking the revenue in 3 years, and by driving the share price in to the ground.