Does TFC have any issues similar to SIVB?
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Many consider this to be the Enron of Banking. The smartest guys in the room until they are not.
@6wcp+1lzHeTNN D-mb if you ask me but banks as a whole put 30 billion in. Let them go down!
Thoughts on the 1 billion to shore up First Republic?
Yes I can hear King Kelly telling Bill, “William you can’t plow but one row at a time!”
No public comment from Rogers in light of this weeks events. One would think some calming message would have been issued. Acting as if this week has been a nonevent.
I can only imagine the hand wringing and the why is this happening to us in the C suite this week. Doing everything possible to limit the damage, working the phones with the Vanguards, Blackrock etc that own 73 percent of the stock. Working the analysts to try and limit the negative news. Bill and the boys are no doubt nervous about where this SunTruist created mess is. You think the ole tent preacher has been advising Bill? Haaa haaa haaa
@6wkp+1lzHeTNN After your post had to go watch the video of this song. Never heard it before but seems to fit the situation.
Watching the stock get hit again today made Cake's "The Distance" pop into my head. Make of that what you will.
So much for yesterday, down 10 percent this morning.
"Help us, Obi-Wan Dante! You're our only hope!"
@5miv+1lzHeTNN is correct with these comments however executive management and the BOD should be held accountable for the stock price being less than half today of where it was in January 2022. The BOD and stockholders should hold someone accountable for this and it ain’t Darryl Bible!
The yammering about unrealized bond losses is some social media fad started by some kid who just took a financial accounting class and the hedge fund shorts. Most banks, including Truist, have multiple liquidity sources and don’t have to sell bonds that have been MTM.
The Fed jacked up rates too fast instead of starting earlier and more slowly. And the reason they didn’t was bleating from politicians and the exact same hedge funds and VC bros who have been drunk on cheap money for 15 years.
Citi analyst throws us a lifeline by upgrading stock to a buy. We needed it.
Anyone at the branch level noting unusual withdrawal activity or is it business as normal?
Management says we don’t have any problems that could lead to an SVB like meltdown. Purpose driven lies!
Truist: Immense Unrealized Bond Losses Threaten Core Equity Stability
Mar. 14, 2023 2:41 PM ETTruist Financial Corporation (TFC)KRE, KBE45 Comments
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Harrison Schwartz profile picture
Harrison Schwartz
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Summary
Among the top-ten largest U.S. banks, Truist Financial Corporation suffered the most significant losses over the past week, losing ~25% of its value.
Due to its high-quality deposits, Truist's immediate risk of a "bank run" or "contagion" appear generally low under normal assumptions.
Based on JPMorgan's research, Truist's adjusted core equity ratio is likely around 4-5% after accounting for unrealized losses on US Treasury securities.
Growing NIM pressures and economic threats to loan losses could jeopardize TFC's equity value, mainly if the crisis extends beyond the government's management ability.
Investors may want to avoid Truist Financial Corporation, even at its discount, due to significant systemic risk factors and the bank's poor capitalization after accounting for unrealized losses.
This guy is not high on SunTruist and the Ponzi scheme they have created.
Full article here
https://seekingalpha.com/?source=content_type%3Areact%7Csource%3Asite_navigation
To summarize, the total amount of bank deposits is falling, creating mounting pressure for less capitalized banks such as TFC. If economic pressure causes TFC's loan losses to rise and/or its cash flows are hampered by increasing deposit rates, then it could be forced to sell its securities at a loss. Given the level of unrealized losses on its securities, a sizeable recession could likely cause the "liquidated value" of its equity to fall to or below zero.
If this were to occur, the systemic pressure would be tremendous due to potential capitalization issues at the FDIC. Hopes for additional FDIC funding are questionable since it is supposed to be self-funded. Additionally, congresses debt-ceiling battle limit its ability to provide financing if needed and will cause an immense wave of new Treasury securities to enter the market later this year once (or if?) the ceiling is raised, potentially adding to negative pressure on Treasury securities (Truist's most significant issue). While many may assume the Federal Reserve will eventually create money to provide liquidity, its ability to create hundreds of billions of dollars (or more, as needed to cover deposits) is severely limited, given the inflation rate.
In my opinion, Truist Financial Corporation is not at high risk of immediate collapse. Further, it is not at increased risk of failure under standard economic considerations. However, if we assume a sizeable recession occurs, combined with the inability of the Federal Reserve to provide sufficient liquidity, then I believe Truist would be at material risk of collapse. Those two assumptions are certainly not guaranteed, so I would not short TFC today.
However, I think the probability of those occurrences is great enough that TFC offers a poor risk-reward profile today, even at its lower valuation. Based on the data, my personal view is that a sizeable recession is likely this year, opening the door to a broader contagion risk in banks like Truist Financial Corporation that may likely be too large for the government to manage.
Stock closed down another 1 percent today. Many that were hammered yesterday recovered much more than this. What’s going on Teammates?
Stock had recovered almost 10 percent of yesterday’s loss this morning. Now back to where it closed. This may not end well.
Folks are moving deposits from regional to the big banks, like JPM and BAC. This is bad for TFC and other regionals and needs to be rectified.
Whoo hoo! Happy days are here again! What a dante-licious day this is!
SunTruist carrying on as if all is normal. Released executive compensation for 2022. Of course Bill got a major increase in overall comp.
Meanwhile SunTruist thought today would be a good day to announce Gregg’s retirement and Hackett replacing him as CEO of SunTruist securities, seriously!
Re: the comment about Beau’s shares… at his level you will always have what is considered inside informs and you can’t just trade company stock when you feel like it. All trading of company stock is often externally managed and in all cases is executed on a predetermined schedule (the rules around said schedule are regulated).
One reason for sale of part of insurance was likely that Truist is in danger of breaching CET1 ratio without additional capital.
Truist stock is being heavily shorted today by hedge funds. Not a good sign.
Beau recently sold 35000 of his 300000 plus shares. Coincidence?
Anybody have any real insight why SunTruist of the top 7 banks has been hammered the hardest in this time of turmoil?
Down 20% at market open. Oh fudge.
Financial institution
Deposits not insured by the FDIC
Signature Bank 90%
SVB 88%
Citigroup 85%
First Republic 68%
JPMorgan 59%
BNY Mellon 56%
Citizens Financial 49%
KeyCorp 47%
PNC 46%
Truist 46%
M&T Bank 45%
Fifth Third 42%
Bank of America 33%
Goldman Sachs 33%
Huntington Bancshares 33%
I would be interested to know if anyone else has noticed this. In recent weeks, the number of “fed-up” Truist clients in my segment has ramped up markedly. It is like a dam burst.
On top of the poor service and endless employee turnover, are clients figuring out the “Truist Cares” slogan is an empty and laughable smokescreen? Who knows, but maybe the ruse will end before Bill and Beau’s (next) big payday.
On the bright side, at least we can still bring our "whole selves" to work and not have to hide our s-xuality.
Time to sell more furniture. And by furniture I mean the good assets like insurance. Go woke and go broke.
Don't worry, Teammates! Our brilliant leaders will figure something out! I bet Dante already has an idea that is "off the chain, yo!"
If you think the market was hard on SunTruist last week, as the re----k says, “y’all watch this”! It will be ugly next week Teammates.
They just botched their payroll and overpaid employees.
Now what “Teammates”
Truist Financial Down Nearly 7%, on Pace for Largest Percent Decrease Since June 2020 -- Data Talk
On pace for largest percent decrease since June 11, 2020, when it fell 9.71%
- Currently down eight of the past nine days
- Currently down five consecutive days; down 16.26% over this period
- Longest losing streak since Dec. 19, 2022, when it fell for five straight trading days
- Worst five day stretch since the five days ending April 3, 2020, when it fell 18.21%
- Down 17.53% month-to-date
- Down 10.02% year-to-date
- Down 42.56% from its all-time closing high of $67.41 on Jan. 14, 2022
- Down 32.24% from 52 weeks ago (March 11, 2022), when it closed at $57.14
- Down 36.06% from its 52-week closing high of $60.56 on March 29, 2022
- Would be a new 52-week closing low
- Traded as low as $37.85; lowest intraday level since Sept. 30, 2020, when it hit $37.00
- Down 9.05% at today's intraday low; largest intraday percent decrease since June 11, 2020, when it fell as much as 9.77%
- Fifth worst performer in the S&P 500 today
SIVB ain’t got a Dante
Just a reminder that BBT stock price was above 50$ per share all of 2018!
All bank stocks were down hard earlier today. Of all the top 7 banks SunTruist is now down over 7 percent while others have basically recovered. Makes you wonder what the market knows that we don’t. But I’m sure Bill Beau and Mike have it all under control.
Makes me wonder if this is why the sold off insurance.