NYCB- Nothing To See Here Again \ stacker news ~econ

3852 sats \ 20 comments \ @siggy47 1 Mar econ

I checked in on CNBC this morning. The talking heads are hardly discussing it. You would think this would be the biggest story. My guess is NYCB is quickly taken over by another bank in a government arranged bailout by Monday.

Bank bailouts are becoming a tradition this time of year.

https://www.cnbc.com/video/2024/02/29/nycb-says-it-identified-material-weakness-in-internal-loan-review-controls-announces-new-ceo.html

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554 sats \ 14 replies \ @TomK 1 Mar

The really disgusting thing about the regional bank crisis is that the media always portray it as a consolidation process. But it is nothing more than an asset transfer to the big fed banks.

639 sats \ 13 replies \ @siggy47 OP 1 Mar

I agree, but I have a confession. I'm involved with one of these shaky regional banks (not NYCB) regarding loans on two retail buildings. The loans closed right before last year's crisis. I have never dealt with a more difficult situation. The bank is driving us crazy with insurance, audits, rent roll updates, even though we're current, the LTV is conservative, and we've never been late on a payment. I would sort of welcome a well funded, close to the spigot Cantillon bank right now, even though it goes against everything I believe in.

161 sats \ 3 replies \ @TomK 1 Mar

very interesting. perhaps you can keep us up to date with this process?

169 sats \ 2 replies \ @siggy47 OP 1 Mar

I don't want to mention the bank, but I'll let you know if it fails. It always gets mentioned when they all start teetering.

153 sats \ 0 replies \ @TomK 1 Mar

Thanks. Now I'm on the hook

0 sats \ 0 replies \ @TomK 1 Mar

Thanks. Now I'm on the hook

183 sats \ 5 replies \ @freetx 1 Mar

I was dealing with a shaky regional bank as well...they closed my account because I deposited 23k in cash. The money was from a customer payment and I brought the referenced invoice to the bank when depositing the money.

The actual deposit went fine, but I got a call from bank manager 3 weeks later saying that I was "high risk" and corporate was closing the account. The manager was actually very apologetic and sympathetic to my situation. He basically threw corporate under the bus and said there were so many forms to fill out for high cash transactions that it was no longer worth the risk (having a bank tell you its too risky for you to hand them money is peak clown world).

Its an impossible situation: What was I to do? If you try to deposit under the 10k reporting threshold then the feds charge you with "structuring" (ie. a made-up name and made-up crime). If you deposit the full amount, the bank closes your account because they themselves now need to answer too many questions to feds regarding "large currency deposits".

Of course the real hilarity is that back when the $10K "high cash limit" was set, was early 80s....so probably $75K in todays money?

The client in question was a retail store that we installed POS system into....like 1 server + 2 client PCs + some cabling + software license fees.

The point of my saga is that yes, the regional banks are being squeezed out of existence but I don't have too much sympathy frankly.....

20 sats \ 3 replies \ @siggy47 OP 1 Mar

Thanks for posting. You raise two great points:

The structuring bullshit. I dealt with this as a criminal defense lawyer. Classic catch 22. The government has you either way if they want you. My clients had no good options but the mattress.
The 10k limit. The law exists as if 45 years of currency debasement never happened.

87 sats \ 0 replies \ @justBrian 1 Mar freebie

imagine item 2 in just 10 more years at this rate 😬

162 sats \ 0 replies \ @freetx 1 Mar

10k

Yeah, like when they passed Income Tax in 1913. They got it thru because the bracket started at $20K - which would be something like $600K today.

They've essentially never really adjusted the brackets all that much but allowed inflation to do their dirty work.

76 sats \ 0 replies \ @Bell_curve 14 Mar

Bank secrecy act, 1970

21 sats \ 0 replies \ @Bell_curve 13 Mar

Money laundering laws are fairly recent, I think 1983 or 84

My guess is based on the debut date of Scarface and Miami Vice

76 sats \ 2 replies \ @BlokchainB 1 Mar

So basically this is crushing small business owners

50 sats \ 1 reply \ @siggy47 OP 1 Mar

Yep. That's the plan.

76 sats \ 0 replies \ @BlokchainB 1 Mar

Hopefully you and the bank can survive.

Even though I don’t like the soul sucking, to big to fail, Nickel and dime the working class while raking in billions in profit banks.

I know some banks out there that try to run an honest business and help their communities. It sounds like maybe this bank is one of those.

76 sats \ 3 replies \ @kr 1 Mar

will be interesting to see if the shutdown of new BTFP loans on March 11th plays a role here.

I’m skeptical that it will, but lots of Bitcoiners seem to be highly aware of the date.

149 sats \ 2 replies \ @siggy47 OP 1 Mar

I'm not sure of the process. Wouldn't it be fairly simple to just extend the deadline? I don't know why they wouldn't. What's a few billion more dollars conjured out of thin air?

76 sats \ 1 reply \ @kr 1 Mar

yeah the process should be simple, but the perception of weakness would bring its own challenges too

77 sats \ 0 replies \ @siggy47 OP 1 Mar

True. It probably will expire unless NYCB quickly gets the crisis ball rolling, which is unlikely.

0 sats \ 0 replies \ @orange_crush 4 Mar

CNBC is not going to inflame a bankrun with a progressive in office.