Bank stocks

[Chiefster23]

Anyone here own stock in a bank? I have a modest investment in M&T Bank. It has done well for me and is paying around 5% in dividends. It is rated ‘C’ by Schwab which is a ‘hold’ rating. But I’m getting very concerned about holding this (or any other) bank stock. What say you?

[red442joe]

What with all the pistol brace nonsense, I thought the title was "Ban Stocks".
I got nothing.

Joe

[Slippy]

No single bank stocks in my stable, but I'm pretty sure I've got mutual funds with bank holdings galore.

Funny story, my Mom worked at at bank in the 1950's as a teller and was given something like 5 shares $50 bucks or so, of that bank's stock as a Christmas bonus.

Crazy old lady held that stock for years until it it was bought by a larger bank, than a few years later by an even larger bank, then sometime in the 2000's by a mega bank.

Recently when she asked about buying a new vehicle, I suggested a new Ford F350 (with ulterior motives of course! HA) using funds from the current value of that stupid stock!

Nearly 70 years holding it! :mammasboy:

[Chiefster23]

Traded off 50% of my bank position and bought General Dynamics instead. Warships and submarines should be a solid investment since war seems to be the order of the day.

[Prepared One]

Traded off 50% of my bank position and bought General Dynamics instead. Warships and submarines should be a solid investment since war seems to be the order of the day.

Yep, banks would be a problem for me. Investing in war is a good bet these days.

[Inor]

There is absolutely NOTHING to stop the absolute slaughter of any bank stock that is not JP Morgan, Wells Fargo, etc.

The two new banks that look like they will be taken over by the FDIC this weekend look to be Pac West and Western Alliance. But given how the Fed and the FDIC handled Silicon Valley, Signature and the others, there is absolutely NO reason why any private money would try to shore up any bank (other than the big 4) right now. Nobody is going to come in and buy enough shares or corporate bonds to backstop a non-big 4 bank from bleeding out when they know the FDIC will just swoop in, take them over (jacking the shareholders in the process) and sell their good assets to JPMC or Wells for pennies on the dollar and the taxpayers will buy all the bad assets.

The Federal Reserve has already spent more money since February on the collapse of 3 medium sized banks than it did in 2007-08 on the Washington Mutual collapse. (We won't know how much they spent on Credit Suisse for another 2 years.) And we are just getting started... This has the potential to make 2008 look like a picnic.

[Chiefster23]

I sold off all my remaining bank stock. The handwriting is on the wall. I actually made a small profit on it. But I collected good dividends while I held that stock.

[MountainGirl]

There is absolutely NOTHING to stop the absolute slaughter of any bank stock that is not JP Morgan, Wells Fargo, etc.

The two new banks that look like they will be taken over by the FDIC this weekend look to be Pac West and Western Alliance. But given how the Fed and the FDIC handled Silicon Valley, Signature and the others, there is absolutely NO reason why any private money would try to shore up any bank (other than the big 4) right now. Nobody is going to come in and buy enough shares or corporate bonds to backstop a non-big 4 bank from bleeding out when they know the FDIC will just swoop in, take them over (jacking the shareholders in the process) and sell their good assets to JPMC or Wells for pennies on the dollar and the taxpayers will buy all the bad assets.

The Federal Reserve has already spent more money since February on the collapse of 3 medium sized banks than it did in 2007-08 on the Washington Mutual collapse. (We won't know how much they spent on Credit Suisse for another 2 years.) And we are just getting started... This has the potential to make 2008 look like a picnic.

I wont put money (deposit accounts, not stocks) in the big 4.
Inor - in your opinion - would funds be "safer" in a (non-FDIC) Credit Union?
I dont care about earning interest, etc.; just not sure how long our regional bank here can avoid what's coming.
Thanks much -

And as always - any of you yahoo's opinions are most appreciated as well.

[Prepared One]

I am no money genius but from what I am reading and hearing on the inter-webs it's going to be a blood bath. People are actually borrowing money just to keep their heads above water. The FED just went up another 1/4 of a point so there will be more banks that suddenly are upside down. Inflation is way up across the board so you money is worth much less and despite dementia Joe is bragging about the unemployment numbers now that will soon change. In the next few months look for those numbers to go up.

I have a tidy sum in my 401K so I am watching this very carefully. Get your ducks in a row guys, it's going to get bumpy.

[Slippy]

Going back to 1919, the story line was that the "government was just here to help".

BULL-FARKIN-SHAT!

it's always been about a power grab and a system that favors socialism where the government workers are the elites and the rest of us are the slaves.

[Chiefster23]

Small deposits should be protected by FDIC and the s&l bank equivalent. It’s the bank’s stockholders that are in jeopardy. Of course FDIC could fail too. But if that happens, it’s all going to shit anyway. The only protection I can see if that happens is gold, silver, and a paid off mortgage and car. But if too many banks fail, I suspect they will just print more money to bail em out and allow inflation to go crazy.

[T-Man 1066]

Small deposits should be protected by FDIC and the s&l bank equivalent. It’s the bank’s stockholders that are in jeopardy. Of course FDIC could fail too. But if that happens, it’s all going to shit anyway. The only protection I can see if that happens is gold, silver, and a paid off mortgage and car. But if too many banks fail, I suspect they will just print more money to bail em out and FORCE inflation to go crazy.

There Chiefter23, FIFY!

[Prepared One]

I think it's going to get ugly. When people can't feed their kids or are getting murdered in sufficient numbers in the streets, the sheep will be in the streets. They will have no mind and will be easily controlled. Opportunity for those who wish to control the sheep. The cities will go first. Don't be were it goes bad first.

[Inor]

I wont put money (deposit accounts, not stocks) in the big 4.
Inor - in your opinion - would funds be "safer" in a (non-FDIC) Credit Union?
I dont care about earning interest, etc.; just not sure how long our regional bank here can avoid what's coming.
Thanks much -

And as always - any of you yahoo's opinions are most appreciated as well.

I use a regional bank for my business accounts and Mrs Inor and I have always used credit unions for our personal banking. I am not worried about either. We do not keep enough in either of them to spend time worrying about them. Even if it all does go away, the biggest hassle will be setting up new checking accounts.

My FAR bigger concern is my deposits losing purchasing power. And frankly, that is going to happen no matter where they are deposited.

<Rant On>

The FDIC is nothing but a scam to nationalize the banks. So far, all of the American banks that have failed, except Signature Bank, have done so precisely because they followed the guidance from the FDIC on maintaining their capital requirements. In other words, they have done exactly what the government told them to do in terms of buying government bonds to back their debt, then the same government came in and took them over and sold them off to JP Morgan.

The FDIC NEEDS to go away! If banks want to insure their deposits, let them buy a policy from a non-government insurance company and use that as a marketing point when they are competing for our deposits. For the banks that do not want to buy deposit insurance, fine; let them pay an extra quarter or half point in interest to get customers and let the customers assume the risk of depositing their money in an institution that guarantees NOTHING!

Not only is a government insurance company (who banks are required by law to buy a policy from) an extreme moral hazard, it has also greatly contributed to so many people being financially illiterate. If a person is too damn stupid or too lazy to figure out if their bank is a well-run organization and likely to be solvent before they deposit their money, they deserve to lose every penny they have! Piss on 'em!!!

And while it is completely off-topic from your question, I will mention it anyway because you mentioned the word "stocks" in your question...

Anybody that buys stock in a company because of some larger "social goal" or because the company is "ethical" is a freakin' moron and is part of the problem with our current society! Those idiots deserve to be shot! There is only 1 reason to buy stock in ANY company: TO MAKE MONEY! There are only 2 rules for buying stock (or options):

1 - Is it legal?

2 - Will it make money for me?

Over the years, I have owned stocks in lots of companies that I personally disagree with. So what?!? I do not buy stock to "feel good about myself"! I buy stock to make money! If whorehouses sold stocks, I would buy shares in a heartbeat. If I had an ethical problem with whorehouses, I'd donate some of the profits from trading their shares to a non-profit organization helping whores.

Activist investors need to die a slow and painful death!

<Rant Off>

[StratBastard]

The FDIC is nothing more than an illusion of safety for depositors. It is in place to privatize profits, while passing off/socializing losses.

[Inor]

The FDIC is nothing more than an illusion of safety for depositors. It is in place to privatize profits, while passing off/socializing losses.

Under the current administration, they are even worse. They are nothing but a way to shakedown small banks and bust them up and sell them off to big banks for political favors. They are worse than La Cosa Nostra.

Remember 2008-09 when they passed Dodd-Frank telling us the law was to prevent any bank from becoming so big that it was "too big to fail"? JPMC and Wells Fargo are almost twice the size they were then. (And don't even get me started on those bastards at Golden-Slacks!)

[Chiefster23]

“Anybody that buys stock in a company because of some larger "social goal" or because the company is "ethical" is a freakin' moron and is part of the problem with our current society! Those idiots deserve to be shot”. Inor quote

Best advice I’ve heard in a long time!

[red442joe]

I think it's going to get ugly. When people can't feed their kids or are getting murdered in sufficient numbers in the streets, the sheep will be in the streets. They will have no mind and will be easily controlled. Opportunity for those who wish to control the sheep. The cities will go first. Don't be were it goes bad first.

Marauding will be business.
Business will be good.

Joe

[MountainGirl]

....
And while it is completely off-topic from your question, I will mention it anyway because you mentioned the word "stocks" in your question...

Anybody that buys stock in a company because of some larger "social goal" or because the company is "ethical" is a freakin' moron and is part of the problem with our current society! Those idiots deserve to be shot! There is only 1 reason to buy stock in ANY company: TO MAKE MONEY! There are only 2 rules for buying stock (or options):

1 - Is it legal?

2 - Will it make money for me?

Over the years, I have owned stocks in lots of companies that I personally disagree with. So what?!? I do not buy stock to "feel good about myself"! I buy stock to make money! If whorehouses sold stocks, I would buy shares in a heartbeat. If I had an ethical problem with whorehouses, I'd donate some of the profits from trading their shares to a non-profit organization helping whores.

Activist investors need to die a slow and painful death!

<Rant Off>

This will be disjointed, but I think you'll know what I'm talking about -
Not long ago, I think I heard about new regulations? for stock brokers etc - that pretty much ended their fiscal responsibility to make the most money for their clients... so they could instead invest in woke/green companies. Ring any bells? I might have been hallucinating - talk radio, half asleep.

Thanks for all of your post above, most appreciated.

[Chiefster23]

MG. That change in regulations made it ‘possible’ for your advisors to consider this nonsense. It didn’t make it ‘mandatory’. You gotta due your own research into how your $ is managed. I told my guy that I don’t want any of this bullshit. That said, if you invest in funds, you are probably involved in this crap. Blackrock and Vanguard are big into this stuff. Schwab, not so much (although I’m sure it’s in there somewhere). Individual companies are big into this too. Coca-cola is one example (I own coke stock)

[Inor]

MG. That change in regulations made it ‘possible’ for your advisors to consider this nonsense. It didn’t make it ‘mandatory’. You gotta due your own research into how your $ is managed. I told my guy that I don’t want any of this bullshit. That said, if you invest in funds, you are probably involved in this crap. Blackrock and Vanguard are big into this stuff. Schwab, not so much (although I’m sure it’s in there somewhere). Individual companies are big into this too. Coca-cola is one example (I own coke stock)

:potd:

If you are paying somebody to manage your money, just make sure they do not subscribe to this bullshit. You will make a lot more money.