Today I Want to talk about how another bank run is happening right now? New York Community Bank is down another 25% today and 40% of its assets are not covered under FDIC Insurance I Also want to talk about how tons of Leverage loans were taken out in January and how this spells big trouble. so stay tuned and let's make some money. I Also wanted to quickly give a massive shout out to Sporty Swing who made $2,200 in One Singular Trade today in the millionaire mindset Trading Group But now dive straight in with the key information. So the Cabes letter tweeted saying: Breaking News New York Community Bank Stock The bank that acquired the collapsed Signature Bank crashed another 25% today.

The stock is now down a massive 61% in 2024 to its lowest level since the year 2000. You can see from this chart. NYCB took a massive drop just a few days ago from $10.40 down down to around $6 but has now dropped even further below $4 And right now, roughly 40% of Nycb's assets are not insured under FDIC insurance. That basically means that tons of deposits that customers have at NYCB are not covered under FDIC Insurance They're above the threshold and therefore all of these customers are going to be withdrawing money from NYCB in the event of a collapse or in preparation for the coming collapse at this rate.

I Give it a week or two before they collapse and they're taken over and bought out for pennies on the dollar. The Cesi letter said the stocks decline accelerated after the bank posted an unexpected $260 million loss in Quarter 4 of 2023 and cut dividends. asking. is the Regional Bank crisis back now? Gario has actually posted a very interesting thread asking if NYCB is the canary in the UBS coal mine.

He said two things are clear: The FED knows they've screwed up in the fight against inflation and it will flare back up unless they keep rates higher for longer. But by keeping rates higher for longer, it obviously means banks will continue struggling and more banks will collapse. But obviously the FED can't cut rates right now. Otherwise, inflation would bounce straight back up to 6, 8, 9, or 10% And therefore, the US banking system is not sound and safe anymore.

As a matter of fact, that exact phrase has been crossed out in the new Fomc statement. He then highlighted the similarities between NYCB and UBS because NYCB brought up tons of toxic assets from Silicon Valley Bank and obviously UBS bought up those toxic assets from credit. Sweet. So if NYCB is currently collapsing as we speak, UBS can't be far behind, especially as UBS posted a massive loss where gains of over 175 million were expected.

but a loss of around 700 million was posted on top of that gold. Telegraph has also tweeted saying Janette Yelen is now warning that some banks may be quite stressed by empty Office Buildings So let me quickly explain why Banks would be stressed by empty Office Buildings And it's because the banks provided these loans. Many of them leverage loans on these Office Buildings And obviously, the longer these buildings remain empty, the more the prices on those buildings crash. the less of those loans, these banks are going to be able to recover.

And not only they going to be able to recover less, they're therefore going to have to realize more losses. And obviously, what does realizing losses do? well? It triggers a bank run and a bank collapse just like what's currently happening to NYCB. So it's effectively this giant giant spiral of banks recognizing losses, the share price tumbling, playing, investors withdrawing which leads to even more losses being realized and the cycle restarts again. until eventually, the bank cannot survive any longer and this style of Crash happens and another bank goes bust.

I Also wanted to go through today's fast moving momentum news play which was Nviv or Inv Vio Therapeutics that ran for a massive 132% Now MV was a stock that I mentioned in the pre-market and was also watching at the market for that 45 C break. Now Jet do and Jacob locked in some massive gains. Jet Do bought in at 38 cents and sold very close to the very tippy top at 94 cents and Jacob lock in a whopping 46% gain. Now that trade wasn't the only trade for the day as I said earlier, spotty swing made $2,200 on paler calls.

icon locked in 129% gains and 145% gains and many duck. He took his first 110% trade. So guys, be sure to join the millionaire mindset. Trading Group Using the link in the description below.

On top of that, as Pxu has tweeted, Janary just saw a record Us Leverage Loan issuance. Now, Bams has explained what exactly a Leverage loan is and what it means. But let's quickly go through the tweet from Pixe. So it says the first month of the year recorded $140 billion in Gross institutional loan issuance.

Last month o saw the heaviest refinancing volume on record at $ 51.4 billion because clearly many banks, businesses, and institutions are trying to draw out additional Capital. But so, Bams has tweeted the definition of a leverage loan which is a type of loan extended to companies or individuals that have considerable amounts of debt or poor credit history. Lenders consider leverage loans to carry a higher risk of default and as a result are more costly to the borrowers because they take on more losses. But yet, these Banks which are already drowning in losses, are pretty much throwing these Leverage loans out the door, issuing 140 billion in new bad loans.

Clearly not only are the businesses and institutions desperate, but banks are clearly equally as desperate to try and get loans out the door to receive at least some kind of Interest I Think at this point, the banks are pretty much banking on the FED to back stop their losses and bail them out. But seemingly the FED is trying to send the exact opposite message by obviously stopping that bank term funding program and sapping that liquidity. I've spoken about the bank term funding program before, which is where many banks in the system, especially through November December and January of 2024 have been taking out or taking record bailouts now up to $167 billion. Now, the reason why this is so important is because obviously Bank collapses will lead to a stock market crash which will bankrupt many hedge funds institutions and Banks out there many banks like UBS which are holding tons of toxic derivatives which would need to be closed upon their failure.

unless of course they can find someone big enough to take on those toxic liabilities and to take on UBS which UBS is now already so so large. The only Bank big enough to take over UBS would be JP Morgan. Not even Citadel is big enough to take on the UBS losses or to take over UBS in the event of a collapse. And even though JP Morgan is just about big enough to take over UBS I Don't think it' happen because UBS is more than half the size of JP Morgan.

it would simply be far too risky for JP Morgan to perform that acquisition and eventually UBS would end up destroying them too. Now on top of that, there's also a hedge fund out there with a 2,000% leverage ratio currently catching the Eu1 watch dog's eye. So a leverage ratio of 2,000% is pretty much a leverage ratio of 20 to1. Remember Citadel have a ratio of 7 to1.

so this hedge fund out there is taking even more risk than Citadel. It says European Regulators are closely following a group of hedge funds with exposure to mortgage bonds and average gross leverage in excess of 2,000% a position so large it risks impacting markets. So this isn't even just one hedge fund, it's an entire group of hedge funds with leverage ratios exceeding 2,000% And they've said Leverage is an approach to trading that tends to compound Market moves and can be an added source of instability. and saying the group represents as much as 15% of trading in the local mortgage backed.

note: Market which is actually really big because if this small group of hedge funds ends up going under or taking on significant losses, they wipe out 15% of the entire Market Alongside and the European Regulators have said leverage for hedge funds remains very high and this may pose a risk of Market impact and even highlighted how these leverag trades almost blew up the Treasury market four years ago and blew up the UK Market 2 years later. And these risky levels of high leverage will also bring down the market and cause those squeezes like the AMC and GameStop squeeze and Janette Yellen Also believes that Fed should be the regulator for financial companies that pose severe threats to financial stability. Now, there's two things that are interesting about this: a There are companies out there that currently pose severe threats to financial stability and B the fact she believes the FED should regulate them AK Saying the SEC clearly aren't doing the right job. Now that is actually something I wholeheartedly agree with.

There are indeed Financial companies that do pose severe threats to the entire Financial system and also the SEC are definitely not doing their job. But guys, be sure to let me know what you think down in the comments below. And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when I upload a new video. Cheers!.