FRC

wowasg

FRC on earnings day is a great representation of how even after markets earnings can fuck everything if you don't get out.

putsRnotDaWae

If you had the steel balls to buy the dip on the KBWB bank index in the March low, you got it at $38.92. It's now $41.22. Even with the renewed "scare" of tiny banks like PACW as well as the failure of FRC, you are STILL green.

Krtxoe

Uhhhhhh Michael Burry is making some serious money right now from his bet on regional banks. He fucked up and bought FRC which, if he didn't resell, blew up and went to zero. However, his other holdings more than made up for it. I am skeptical of inversing that guy, even if he does have some bad trades sometimes.

free_lions

I wonder how FRC puts guy is doing

john2557

It really is a pretty thin line...Looking at the other regionals, FRC probably could have survived if they were given a little more time.

ExtensionEbb7

That’s what I thought when I held my FRC shares through earnings 

Aggravating_Bag5420

How's your FRC puts?

Wonderouswondr

He borrowed $50B from the FDIC to yolo on FRC… https://preview.redd.it/hkou4bf6mc1b1.png?width=1800&format=png&auto=webp&v=enabled&s=a1758ba48d30380e5908cac92a29ab202f4ae2b1

hardcore_softie

I have a fairly large collection of FRC towels like [this](https://imgur.com/a/MhMYa4J). They're really nice. That bank was all about swag. I'm hoping that stuff appreciates in value. I would have a small fortune if that happens.

BeastSmitty

If another bank buys out FRC, the shareholders will receive a payout based on the value of their shares.

Thekes

Well Nvda had an earnings beat recently despite crypto winding down which restored some confidence. AI boom will also fuel demand. Look at fundamentals, just because something went up 100% doesn't mean it's overvalued, or vice versa (I.E FRC before it went boom for the second time)

Acceptable_Special45

Used to hear this same statement before FRC went kaput.

kensisapigeon

That is not what happened to FRC. FRC had little to no liquidity due to most of their money being tied up in bonds, loaned out 120% of their funds, had over 70% of their deposits above the FDIC limit and had a negative balance sheet when assets were marked to market. This meant that even before the fears, they didn’t have enough liquidity to cover even small shocks. Many in the financial community were talking about the major risks behind FRC in January-Feb.

noiserr

Michael Burry also bought $2M worth of shares of FRC.

hardcore_softie

Ask the people who went balls deep into FRC shares and calls.

NoobInvester018

Wait... If he bought it after March 14, my only question is at what price point did he buy those? Rip his FRC & PACW shares though.

WSBro0

In competition with FRC buyers.

ShortTermCptlDstrctn

I finally found the HTM section of FRC's 10K last night (the first PDF I had wasn't text searchable). It puts them at about 35% losses in Q1 assuming the HTM amount and loss didn't change. It's not great but CMA / ZION / TFC / KEY / PACW are all in the same region and aren't dead yet. It's really the uninsured depositor % and liquidity coverage for those depositors that matters, and how easily scared out they are. The AOCI to CET1 ratio (or AOCI to CET1 minus AOCI used in some places) identifies some weakness but not the main risk. I need to look more closely into CMA / ZION. Zion has close ties to the (extremely wealthy) Mormon church so I don't see them failing despite the high AOCI loss ratio and 55% uninsured - although that doesn't mean the share price won't go down. I think preferred shares are a reasonable choice. I looked at PACW common's upside in another post and by my estimate it's only around $8 unless a huge amount of depositors come back. The common dividend will probably take a long time to restore. I have a mix of WAL / PACW preferred, common, and options (CSP / CC).

ArielMizrahi

Will the FRC stock be taken off the market after the bank collapsed and was acquired by JPmorgan?

OlyBomaye

Imgur isn't working but I'm trying ti show you a graph that shows core deposits as a % of assets is higher, significantly, than it has been in the banking system in the past decade. Regarding your exchange with the other guy, it isn't necessarily stressing the banking system. There were 2 banks that saw huge problems. SIVB lost 84% of their deposits in 2 days. Signature saw massive outflows over the course of a year relating to their bet on banking all the digital wallet, NFT, and crypto companies. Deposits sank while that market crashed. First Republic failed as contagion mostly, but also because they had an absolutely terrible asset-liability mismatch from their jumbo lending program for Google and Facebook employees. That is to say, those 3 banks were unique, in different ways from one another. But the one major similarity is absolutely massive deposit growth (200-300%) from 2020 to 2022. SIVB and FRC made similarly bad investments while SBNY just saw more than the 25-28% deposit runoff they had budgeted for from Q122 to Q123. Overall the banking system was prepared for the 3% deposit loss they saw in Q1. Banks are also not tightening standards (that SLOOS report showed like 0.3% of banks have tightened). Fewer borrowers are meeting their standards since debt is more expensive and fewer projects are expected to produce sufficient cash flow to service it. This is exactly the intention of the Fed raising rates. The point was to slow the economy. They still want to lend, but are finding fewer willing & capable borrowers.

OhCanVT

FRC: -99.71%

Krtxoe

Pacwest seems to be enough coverage for uninsured deposits and not a lot of HTM securities, so I don't think the fed has any reason to forcibly shut them down like FRC. That being said, they do seem open to a sale.

bbq-ribs

Okay lets sum up this recession cycle. It all started in 2020 when the Fed suggested that it wont keep easing forever, after pumping an infinite amount of money to .... idk turtles. 2021, the Fed stated that inflation is not an issue and its transitory. 2022 the Fed full blow panics and raises rates, however the market lives in a parallel universe and kinda just ignores it. 2023, the Fed raised rates alot, the market is pretty sure that didnt happen, but at the same time its a not a problem unit it is ... look at SVB, and FRC. So what is going on? Well nothing until literally at the point something bad happens.

generic_commenter99

They are absolutely under stress. Some have the same issues that plagued FRC and SVB but they just haven't had the same runs those banks dealt with.

robbinhood69

OP u ppl r fucking hopeless I heard the same argument from equally clueless OP about FRC Have fun getting rekt there r easier plays dog

NoRace5075

FDIC took over First Republic Bank from FRC because of insolvency. FRC now owns nothing. Chase purchases First Republic Bank from FDIC.

Correct-Ad9110

There will be no more FRC earnings

ShortTermCptlDstrctn

I read a painful amount of 10Qs for this. Some notes on the values: * Fuck press releases and investor summaries, they have the propaganda numbers. The SEC filings are much more detailed and honest. * I generally calculated unrealized losses as AOCI / CET1 capital. My Q4 values don't exactly line up with the original chart so I think Burry was probably including some other things. Some of the 10Qs were difficult to find the unrealized losses or uninsured depositor percentage in (or omitted altogether). * WAL / PACW are more recent as they released some values since May 3, most are Q1 (Mar31) values except for the banks that didn't make it that far * For EWBC I combined AFS and HTM unrealized losses * Zion didn't mention their uninsured % so I had to trust an article * For Keybank I used unrealized losses for AOCI * For RF I used stockholder equity as the CET1 value * For SoFi I used the holding co values * For SI I couldn't find the uninsured value so assumed 90% * FRC's AOCI values are really low, like consistently only -300M against 14.5B CET1. I couldn't find where they where hiding the rest of the losses on their balance sheet. * SIVB is so comically and tragically bad I excluded it so the chart would be better scaled to everything else. In my opinion this chart isn't actually that good for seeing the health of the banks. I think uninsured deposits % vs immediate liquidity as a % of uninsured deposits would give a much better idea of how many people are ready to bolt for the exits and how much it will affect the bank when it happens. My impression from all those 10Qs is that the banks were scared shitless by March (good) and have been improving liquidity, slowly reducing their unrealized losses, and started to look forward at how to deal with other risks like credit downgrades and further hikes, in addition to their existing asset-liability term mismatches. Many of them had significant reductions in uninsured depositor % too, so the most skittish uninsured depositors are already out. I think a lot of them are fairly priced given the circumstances and will be flat / slowly up for a while with occasional 5-15% dips on bad news with recovery over a few days. The ones with bigger drops like WAL still have some decent upside to them, especially on a dip. I am net long PACW / WAL.

ShortTermCptlDstrctn

I read a painful amount of 10Qs for this. Some notes on the values: * I generally calculated unrealized losses as AOCI / CET1 capital. My Q4 values don't exactly line up with the original chart so I think Burry was probably including some other things. Some of the 10Qs were difficult to find the unrealized losses or uninsured depositor percentage in (or omitted altogether). * WAL / PACW are more recent as they released some values since May 3, most are Q1 (Mar31) values except for the banks that didn't make it that far * For EWBC I combined AFS and HTM unrealized losses * Zion didn't mention their uninsured % so I had to trust an article * For Keybank I used unrealized losses for AOCI * For RF I used stockholder equity as the CET1 value * For SoFi I used the holding co values * For SI I couldn't find the uninsured value so assumed 90% * FRC's AOCI values are really low, like consistently only -300M against 14.5B CET1. I couldn't find where they where hiding the rest of the losses on their balance sheet. * SIVB is so comically and tragically bad I excluded it so the chart would be better scaled to everything else. In my opinion this chart isn't actually that good for seeing the health of the banks. I think uninsured deposits % vs immediate liquidity as a % of uninsured deposits would give a much better idea of how many people are ready to bolt for the exits and how much it will affect the bank when it happens.

crazycoconut247

I lost 40K on FRC so I feel ya buddy

maddhy

FRC

hardcore_softie

And he lost a decent amount on FRC. One of us!

StephenElliott

I strongly believe WAL will hit $60 within the next 3 to 4 months as it was unfairly targeted in the media shitstorm. PACW maybe $12-$15, which is fine by me. I see Janet Yellen is now investigating the FRC debacle.

22firefly

I'm an idiot, but this is my opinion, which is crap, like actual garbage. I have no idea what ccl will do over the long-run. It is backed by the Saudis. So there is money. Carnival Cruises has been around for a very long time. So there is that as well. We are no longer in a pandemic, but possibly a recession. We know that CCL is leveraged with debt. We also know every cruise line has been hurt. That said, CCL has seen $20 multiple times over the past 2 years. The reality is I'm not sure when I'll probably buy some, but I think it will be towards the fall when all this economic turmoil stuff has settled or we're in the throws of it. At least then it should be a little better of a bet. As I say that, I'm considering buying a little PACW eventhough I just got burned on FRC@13 for $1000, so I'm an idiot that makes bad decisions. This is not financial advice and comes from a person who has had, on four separate occasions, received skull fractures.

OhCanVT

the man's dropping hundred dollars like it's FRC

CheesyFoopa

I’m still holding my 150 shares of FRC I bought @ 13.50 avg. there’s always a chance 😏😂

DerpyMcOptions

banks just rallied for 3 days, but the emergency BTFP program just hit a new record post FRC's collapse signaling another bank collapse is imminent. 

DerpyMcOptions

BTFP is now higher than when FRC went under, what this means is that another bank is 100% failing and going under...

wowasg

FRC

Jrecondite

Strong like SVB and Signature bank. Resilient like FRC. So strong.

DerpyMcOptions

FRC had a boost of 30bn in deposits from the mega banks before it collapsed.... just sayin...

AwwTheSwineFlu

Why haven’t you made your donation yet? Still holding FRC? Did you seek counseling for being addicted to gambling? Are you still a raging asshole?

IDesireWisdom

You can’t blame him. If it was 2008 they would have bailed out FRC without a doubt.

OkCitizen

**THREE BIG BANK FAILURES? (FRC, SVB, SIG) **THREE MORE RATE HIKES (March, May, June)**

Paperhands_RC

Nah bearish thesis was an FDIC seizure straight after FRC because of bank runs caused by that. Didn't happen. Bank is stable by all reports.

bred_by_papa_safe

He should take over FRC bank 🚀🚀🚀🗼

havegravity

While the subject-matter pertains to trading of thy company equitorials, asking about “it’s full potential” is actually a bilateral translation of predicting the death of said company or at least it’s ticker symbol. Thus, for a company as innovative as NVDA, ie their objective history maintaining a position of adaptability, per my very special adaptability-to-date measurement or ATD% underpinned by a specific set of parameters that are able to actually calculate the context-variable (per adaptability), which is an extremely productive asset to operate as it happens to be a majority-stakeholder in quantifying the linear efficiency ratio of a company, aka it’s ability to progress. A high linear efficiency rating is based on, again, a specific set of parameters that culminates a nice little dataset for identifying the estimated strength thus return of a company, then multiplied against input of opposing datasets called environs, producing what is called the capacity of progression, another fun ratio, which is the other half/counterpart to another fun ratio measuring the capability of progression, where those two datasets multiply against each other (or invert each other as dividends where one is “rise” and the other is “run”) and if their summation measures a certain numerical variable, or aggregate value, it points to the indication of what is known as a “coefficient” (think of how capacity and capability can multiply as integers and producing an exponent with it’s value of potentiation is tied to the profiles of said preceding-integers) and when it comes to this particular *game* it’s basically a cheat code for trading in long-term mode (ayyy!) But it’s not all percs and addies tho. There are of course other environs representing high threat-potential, which is another ratio, I fucking love measurements, pertaining to random ass absurdly fucking rare events like some guy tweeting his piece about a company and leads to the effective demise of said company (unlike any recent companies of course). Anyways that’s ^kinda how I pick my investables and so far it’s been ight. No complaints, basically that astronaut chillin with a beer on the moon. I’m thinking about wrapping this into a licensed algorithm to peg my gf’s husband with. Edit: Oh I do have a casualty unfortunately a recently one, I admit FRC was a calculated coefficient that failed which I think is the first one since inception of framework.

neothedreamer

Imagine I started shorting RAD in August 2022 at $10. Currently, even with the 15% pop up from 52 week low I would be 80% in profit. Why would I need to close from a tiny pop. I doubt many shorts would even start to get nervous unless it popped back up to $4 or $5 which is a 100 to 150% run feom where it is now. When something drops this much it takes a huge run up to put any real pressure on short sellers. Blood is in the water with SVB, FRC, SI, BBBY all getting delisted. Shorts know other companies are going that direction especially with anything other bad news.

d3nv3rite

Many banks hold US treasuries, as evidenced by SVB and FRC

Sterling-Archer

I told myself a few months ago that I was tired of losing my money in options and only stick to stocks because even if it goes down you are still left with some value. So I bought a bunch of FRC stock lmao

TowerOfSatan

U haven't learned from FRC?

shawman123

if you have puts and its in the money, I would recommend you close it. You dont want to wait for it to delist and then left holding the back like some of the FRC put holders. Plus its possible the company has some intrinsic value since it does have some cash on hand. If they shutdown its possible the cash is distributed to stock holders.

Neverbeenonthis

Did you see the s&p report on CMA recently: Favorable points called out about Comerica in the S&P report include: · Comerica’s quality of capital is strong. · The bank's securities portfolio is entirely available-for-sale, unlike many regional bank peers. · Cash balances were roughly $11 billion as of March 31, 2023, or about 12% of total assets, which is above pre-pandemic levels. · At March 31, 2023, CMA reported total liquidity capacity of roughly $42 billion (or $21 billion excluding discount window availability), versus roughly $35 billion in uninsured deposits. · They also expect Comerica to remain solidly profitable over the next two years. Again, my point is that CMA is not gonna go down. You are shorting the wrong bank. Go short something that is unprofitable. FRC and svb was unprofitable.

tachyonvelocity

Except they were heavily buying in the 30s, and now it's 6. I agree it's a good sign though, better than none like FRC and SVB.

Neverbeenonthis

I'm just trying to help you to stop losing your money on this trade. You never heard the term "don't fight the fed?" The fed doesn't want the regional banks to go under. Too much blood in there hands. They will do whatever policy necessary to continue the train ride. This is the dip of a lifetime for those with no exposure to kre. I'm a big buyer even here. Selling is being exhausted as dividend yield is attractive here. Trust. We won't see another top 10 regional bank collapse in 2023. Don't read the fud about how bad it is. It's really not. Have you looked at their balance sheet ? CMA balance sheet is top notch compared to FRC. You are shorting the wrong stock

DerpyMcOptions

Seeing the copium oozing over on FRC forums is sad.... There's going to be so many more retail burnt buying these banks here... There's no chance the banking problems are resolved. Some people claim Congress is going to save them... but I guess they forgot the calibur on the banking committee... Go watch fetterman attempt to ask a question to a banker...

xxTheForcexx

Is PACW a buy or is it going to shit like FRC & the others ?

mrnotadvice

Are you saying that FRC and SVB share price did not accelerate their downfall? If thats true then why is there consideration of a short selling ban on bank stocks? Go argue with someone else who will waste their time. I certainly wont. Why are you so obsessed? Put up a post of your own. Or are you incapable of anything else other than criticism.

PortC954

https://preview.redd.it/9q3mni74uf0b1.jpeg?width=2048&format=pjpg&auto=webp&v=enabled&s=2c9a5472ba012569eef8d24f685dae210b4e1726 When they say people are stupid this is prime example. Probably same people who were buying $FRC and $PACW dips. Same people thinking $GME going to $1000 😂😂

LizHurleyFan

I bought FRC around 13 and bought BABA at 86 again. Its sad Burry thinks like me. He can do better.

lipmanz

Is Porter Collins the new teen idol from Big Short after shorting SIVB and FRC to 0?

StruceDeuce

FRC as a company doesn’t exist any more. Pretty sure the OTC trading is so brokers can close out option positions. I would be surprised if a broker let you purchase them.

Theta_Ome

I know FRC is trading in the pink sheets but can I still get physical shares? Does anyone know?

Theta_Ome

I want to buy shares of FRC and get the physical shares. But it's technically and fundamentally no longer a company and it's trading pink sheets. Can I still get the physical shares?

Krtxoe

Banks can only sell a portion of their HTM securities before they are considered non-compliant. Likely attributed to FRC getting taken over by FDIC quickly. They can also hide their unrealized losses in these HTM securities. If you look at FRC's balance sheet you can see that they had 31b in this category. That being said, I didn't really look at silicon valley so not sure if that's what happened.

kk7766

that doesn't matter at all. everyone can short it to zero then there will be a bank run. same thing happened with FRC and happening now with PACW. PACW is gone in a couple weeks then everyone will turn to WAL next

OkCitizen

US's largest bank (JPM) wants to buy another huge bank (FRC) with hundreds of billions AUM: >SEC: I sleep Takeover done in a matter of days. Large software company (Microsoft) wants to buy a video game studio (Blizzard): >SEC: **REAL SHIT?!** Pending antitrust investigation for over a year.

itsahornyalt

Yeah he was in on FRC at like $13

Sharky-Li

I hear you but it just seems a bit strange they would even mention it since the only possible outcome is panic, especially in this climate. The shares fell quite a bit and still haven't recovered so I don't know what the point was. It's kind of like if your pilot was like "Don't worry guys we're not going to crash". It plants doubt in people's minds just by mentioning it and is probably one of those things that are best left unsaid until it really needs to be addressed. To add onto this the past few bank acquisitions, FRC and CS both screwed shareholders even if that's not typical.

doerpy

PACW really is the next FRC

OdeToRocket

Banks fail regardless of excellent balance sheets. PACWP is dead. Let it die. Stay away from it. SVB had an INCREDIBLE balance sheet. So did FRC, look where that got people trying to buy the dip.

moonmannative

Different ones, there’s a list on the 13f filings but FRC was one of them

OdeToRocket

It's very possible he bought shares to hedge a larger short position elsewhere. For instance FRC was so beat up that he might have shorted JPM on the grounds that JPM will be sold later as fallout of FRC continued. A small buy-hedge in a volatile underlying would be a cheap way to hedge a more expensive short on big banks. Burry said "never trade what someone else trades, you never know what the other sides of their trades are because the K-1s don't require you to declare certain trades or short."

Rare-ish_Bird

Probably a condition on their FRC transaction, to prevent them from becoming too big to fail...oh, wait.

phdchef

So I have a small position in WAL approx 700 shares. I have a much bigger position on PNC, for several reasons. First, PNC is a very conservative bank, almost to a fault. While they have a large percentage of uninsured deposits, they gained deposits since March because they are closer to a super regional than just a regional and thus viewed by most as safe (and they are). Second, they have ample liquidity to make an acquisition, and they do intend to make one since they are the only rival bid to JPM for FRC. The fact that Yellen is signaling to regulators to fast track regional consolidation also tells me that road is paved for PNC to make an acquisition. The real question is who. I've thought about WAL and Apollo dividing up PACW on the basis that Apollo's Atlas SP provided a $1.4b lifeline to PACW in March, of which PACW suggested to have paid back approx $1b. It is trying to sell off some assets to pay back the remainder. WAL has some regional overlap with PACW but not terribly so, and based on its deposit gains along with cash on hand, it can make an acquisition (though I imagine stock swap might also be involved). Apollo, for its part, was one of the PE bidders for SVB and wants to funnel some loans to sell to its insurance clients, who don't have the deposit flight problem that banks do and thus can better withstand long dated HFI loans that are currently underwater. The lynchpin there is that Ken Vecchione, WAL's current CEO, used to be Apollo's CFO and that WAL had already retained Sullivan & Cromwell, the law firm that has advised on many prominent M&A deals. Finally, I just opened a small position on ZION this morning. Beta is reasonable, day of record, no red flags on books.

Headinclouds583

Why did PACW pay pref dividends and pay 1¢ on common shares? Debt to equity is at 400% according to Zacks and they are trying not to repeat same steps as FRC

hardcore_softie

Oh yeah, 99% of the DD these days is utter trash, whether it's some kind of plant or just a regarded redditor. I hope we'll eventually get back to more high quality posts. I still think Tkid was legit too, but that kind of stuff is way more suspect and I always have my doubts about it, even when I go through their post history. Dude wasn't only cocky af, it was literally like he was trying to be an FRC stock salesman. Plus his DD mainly consisted of "media is negative about this stock because shorts are scared and trying to keep retail away." Not so much DD as it was just straight up shilling a stock by appealing to the "apes'" beliefs and values. This sub was already pouring into FRC, and I'm sure his posts got others to pile into that money incinerator.

hardcore_softie

Oh I have no doubt that hedge funds etc have invested some money to monitor subs like this and even actively done astroturfing and social engineering campaigns. A lot of this stuff really doesn't cost them all that much. Now they just realize how to do it and how important and useful it can be to them. At the same time, I don't think retail needed a whole lot of help losing over $10B last year on OTM premiums, but that's why I still do take everything I see online with a grain of salt. Like I said before Tkid was a loudmouth pumper who made multiple posts that got heavily upvoted pumping FRC so that could be a little suspect. That girl, on the other hand, only posted once about being down 45% on the stock and hearing it was going to $1. That's not exactly a ringing endorsement to buy the way that the other guy's posts were, and like I said, reading through her post history makes it seem extremely unlikely that she was part of some astroturfing or other campaign.

free_lions

/u/happyniu please tell me you sold FRC before you lost all your 200K

hardcore_softie

Trillionairekid might have been a pumper and exaggerated his position, but his post history reads a lot more like someone who was convinced he was going to become rich from this play and had it all figured out. Then, after being so loud and arrogant, he went silent right after FRC collapsed. If you read through the girl's post history, that one is almost certainly real. She only made one post about it, then just made some comment replies. She wasn't screaming from the rooftops about FRC like Tkid. She also mentions her father passing away in comments made before posting about FRC. It's good to be skeptical with shit online, but not everything is fake with ulterior motives. Also, this sub collectively has so little money relative to big players that I think you're really overestimating how much MMs or whatever would spend their time and resources to make up bullshit like that on here to try to "rake in hella premiums."

hardcore_softie

Trillionairekid's last post was two weeks ago. He was arguing that all the news about FRC going under was unconfirmed and likely fake news to get retail to sell. It received 12 downvotes. Then there's the girl who posted here asking for advice regarding her FRC investment. She had taken her late father's inheritance along with most of her savings and put $200k into FRC. She was down 45%. Most people here told her to cut losses and preserve capital. $100k is still a lot to work with. However, she agreed with heavily downvoted posts saying "it's not a loss if you don't sell." Her last post was a month ago, saying she was still holding because "it's the regard way." RIP and RIP.

Krtxoe

FRB doesn't even exist. I was referring to FRC and that's already at $0. Zion is also riskier than PACW and WAL imo but I could be wrong, who knows.

polloponzi

I already learned my lesson buying bank stocks on the dip: $SI, $FRC, $CS NO THANKS

BlockStraight9550

His trying to recover from $FRC Bags

Red_or_Black1

So Big Short bought FRC 2m position before it tanked. 

satireplusplus

Looks like he lost 2mil on FRC. In a couple of days probably too buying it at $12, just like the rest of WSB. But also looks like he can afford to lose that much.

Sansoldier

You must be able to withstand short-term losses for longer term gains. I underestimated the correlation between stocks, and failed to look at the short interest of ETFs such as KRE. I think it will be worth it once the "bad news spiral" dies down, but until then, I believe gains will be depressed in the short term. I invested in WAL and PACW before they became the center of attention. Had a chance to sell before FRC results, but mistakenly thought FRC's bad results wouldn't tank the entire sector. Fortunately, I bought at the huge dip on May 4th and found chances to move my PACW into PACWP preferred shares. I was also greedy about PACWP dividends and held too long when it was at $12, now ~10. I just about broke even overall since my investment in KRE is down, but I'm looking for better exit points (trimmed a lot today). You never know when bad news (or rumors) comes out or management says something that will unexpectedly tank the stock. Too stressful right now. The stronger your thesis, the more you should stick to plan.

Republic8583

Even Michael Burry lost n FRC 🥸

ninkorn

>Michael Burry loaded up on bank stocks (**FRC, PACW**) in Q1 - Bloomberg Wonder how much he lost

PharmDinvestor

Dude got destroyed in FRC

Krtxoe

I'm surprised no one roasted me for putting FRB instead of FRC. For some reason my brain assumed it was B for Bank lol

LeMondain

What happened to the FRC prefered stock? Are the holders gonna get pay out?

someonesaymoney

Remember slutnuggets. 13-Fs coming out today. Burry's (Scion) already released. Motherfucker tryna to catch the regional bank knife and looks like took a big fat L on FRC lmao.

hardcore_softie

Every single bull has been calling Burry a dumbass for the last decade but now that he goes long bulls think he knows what he's doing. Also you don't know if he's just hedging against CDs, treasuries, etc that he holds. This also shows he bought $2.5k of FRC, not that that's a huge position for him.

ShortTermCptlDstrctn

I've avoided KRE / DPST since I don't want to research every single major holding to make sure none of them are FRC tier bad and for DPST 3x leverage daily ETFs scare me lol. A 2% holding going into receivership is a 6% loss as well as the constant slow bleed that leveraged or short ETFs have. My account wasn't approved for CSP until today (started with cash instead of margin), I'll have to look into that strategy. Are you selling the NTM closer in expiration to increase the chance of getting assigned and profit from theta decay or longer dated as well for bigger initial premium?

hardcore_softie

Lol $2.5k in FRC

latending

150k shares of FRC for \~$14, big ooof. Imagine also being a perma bear but trying to catch the falling knife of a failing bank lmao.

Joseph590

In an environment where banks aren’t sitting on unrealized losses banks could sell their loan portfolios for the cash. All banks are sitting on unrealized losses, there was even an article that banks are under water on every mortgage made in 2022 because of the rate hikes. This is a systemic problem where only tbtf banks will be able to survive because fdic insurance fears as depositors flee to them(case FRC). All banks need accounts over the fdic limits to function and if the accounts over the fdic leave then that bank wouldn’t be able to function.

liteagilid

FRC at $12. Ouchie

Joseph590

The FDIC absolutely has the authority to seize a bank to stop fear. The guidelines to seize a bank are absolutely vague. In the case of FRC, FRC Still had on hand double it’s uninsured deposits in cash or other lines of credit when it was seized.