JPMChase doesn't care about your deposits

ayokunle.substack.com

16 pointskunle5 comments

First SVB was effectively insolvent way before they had a run. There are many other bank with the same problem.

Not having to mark to market doesn’t make you any less insolvent it just makes you a zombie bank

I think on this basis most banks in the us are functionally insolvent.

Not defending SVB - just calling out that the dynamics that make svb insolvent (400bp rate rise in a couple years after a spike in deposits with lots of deployment in fixed income securities) are essentially true for all banks in the us.

It may be true, depending on how low the bar for reserves was set it’s possible a lot of banks are sitting around as zombies

Not just possible. Likely.

Better said here than me: https://twitter.com/squawkcnbc/status/1636705550237851648?s=...

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