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Alectas svarta hål i amerikanska nischbanker balanserar nu på 20 miljarder kronor.  Korten måste upp på bordet och ansvarsfrågan vädras ut ordentligt. Torbjörn Isacson  DI 21 mars 2023 Isacson: Alecta måste presentera en ordentlig genomgång (di.se) Räknar vi bort passiva indexförvaltare är Alecta största ägare i världens just nu mest omtalade krisbank Englund: Räknar vi bort passiva indexförvaltare är Alecta största ägare i världens just nu mest omtalade krisbank (englundmacro.blogspot.com) Alecta arbetar på uppdrag av  Svenskt Näringsliv  och  PTK   Alecta – Wikipedia

First, banking rests on confidence. For uninsured depositors, running at the first sign of trouble is a perfectly rational response.  Second, systemic importance isn’t solely a matter of size. Even a small bank can cause big problems if other banks look like it. Third, panic is difficult to stop once it starts. Fourth, a bank’s prospects depend on more than just the credit quality of its assets. Interest-rate risk, and the composition of assets and liabilities, also are important. Fifth, incentives matter. When bank executives’ compensation is tied to earnings and to the bank’s stock, they’ll be motivated to take more risk.  What to do? First, address the issue of uninsured depositors. Forget the notion that they can monitor banks and provide market discipline. In practice, they do so only in a binary way: not at all, or suddenly and completely.  Second, restore systemic-risk supervision of mid-sized banks. Third, head off panics by making central bank lender-of-last reso...

Liabilities to the public that are supposed to be perfectly liquid and redeemed at par (“money”) should be matched one-to-one with similar assets. This could be done by forcing intermediaries to hold reserves at the central bank or similarly liquid government liabilities. This is the famous “Chicago Plan”.  Martin Wolf FT 21 March 2023  The Answer To The Banking Problem: The Chicago Plan The banking system of the United States is in disarray right now and needs changing, but at the moment, its leaders seem to be confused as to where to go. Not only do the authorities need to be cognizant about the current financial crisis, but they need to be aware of how technology is changing the whole system. John M. Mason 21 March  2023 https://seekingalpha.com/article/4589122-the-answer-to-the-banking-problem-the-chicago-plan Chicago plan The Chicago plan was a monetary and banking reform program suggested in the wake of the Great Depression by a group of University of Chicago econom...

In the week after Lehman Brothers declared bankruptcy on Monday, Sept.  15, 2008, the US stock market somehow managed to close slightly higher than it had started.  This was not in any way a reliable indicator of what was to come. After that, the S&P 500 went on to fall 46% before hitting bottom almost six months later.  John Authers Bloomberg 21 mars 2023 https://www.bloomberg.com/opinion/articles/2023-03-21/markets-calm-after-ubs-credit-suisse-a-lehman-pause-or-the-real-thing First Republic is facing intense pressure to reassure investors that it is viable.  Its stock has lost more than 90% in March. Shares closed down 47% at $12.18 on Monday 20 March https://www.wsj.com/articles/jamie-dimon-leading-efforts-to-craft-new-first-republic-rescue-plan-a39b9bb First Republic rallies after bank backstop pledge from Treasury’s Yellen  Whipsaws into positive territory one day after sliding 47% to an all-time low. Yellen is due to deliver a speech to the American Ba...

 A $30 billion deposit influx from biggest U.S. banks fails to calm jittery investors. First Republic Bank FRC shares fell more than 30% Friday 17 March  First Republic’s stock has lost nearly 70% of its value over the past week. Still, the S&P and Nasdaq notched weekly gains.  The Dow industrials posted a small weekly loss. WSJ 17 March 2023 https://www.wsj.com/articles/first-republic-stock-plunges-after-bank-rescue-plan-dividend-suspension-e18fa90c First Republic Cut to Junk by Moody’s After $30 Billion Rescue The company’s share price tumbled 33% on Friday, an indication that investors remain unsatisfied.   Bloomberg 18 mars 2023 k https://www.bloomberg.com/news/articles/2023-03-18/first-republic-cut-to-junk-by-moody-s-after-30-billion-rescue First Republic Set to Get $30 Billion of Deposits in Rescue https://englundmacro.blogspot.com/2023/03/jpmorgan-m-fl-banker-satter-in-typ-300.html