Rescuing First Republic Bank – InsideArbitrage Friday Wrap

  • March 17, 2023


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Rescuing First Republic Bank (FRC)

Breaking: First Republic Bank received $30 billion in deposits from 11 banks in a deal to support the beleaguered lender, U.S. regulators said

OK lets do the quick math on $FRC. Smooth brained workings time (I'm not a banks guy remember 😳).

I’ve had ALCO meetings for the 5 bank boards I sit on in the past 24 hours.

Spoke with executive at regional bank today. They have daily conference call with the 10 CEO's for the various regions.

Banks Under Pressure

In the wake of SVB, smaller banks will be reorganizing their balance sheets, leading to tighter credit conditions in the US.

Banks sought record Fed liquidity in wake of SVB collapse

SVB part 3: If only SVB had been forced to run stress tests on interest rates... right?

Barney Frank defends role at Signature Bank: ‘I need to make money’

Credit Suisse is hit with its first US investor lawsuit alleging that it overstated its financial prospects to shareholders

Insiders at regional banks significantly stepped up their purchases last Friday and Monday.

Insider buying continues unabated.

The insider activity at the banks that are in the eye of the storm is interesting.

"It's just been an emotional weekend," Altimeter Capital’s Brad Gerstner says after the collapse of Silicon Valley Bank.

Why do we have exclusion of mark to market loss for hold to maturity securities? WSJ explains

Special Situations

Pfizer $PFE buys Seagen $SGEN, maker of targeted cancer drugs, for $43 billion

Another @WSJdeals SCOOP with @LCooperReports : Apollo Global has agreed to acquire chemical company Univar Solutions for $8.1 billion including debt, sources say.

Blackstone said that it would buy Cvent for roughly $4.6 billion, paying $8.50 per share.

$MNTV - SurveyMonkey parent Momentive to be taken private in deal valuing it at ~$1.5B

I don't participate in too many pre-deal situations or rumors but decided to buy Momentive $MNTV last November after writing about it in our special situations newsletter.

Synchronoss Technologies $SNCR confirms receipt of Non-Binding proposal from B. Riley Financial for a price of $1.15 per share.

Traders and analysts are fretting over the price cut risk amid rout in financing stocks.

Aerojet $AJRD/L3 Harris $LHX receive 2nd request from #FTC re pending 4.7bn #merger despite pull and refile.

DocuSign’s CFO Cynthia Gaylor to Step Down – C-Suite Transitions

Kellogg, the maker of Cheez-It crackers and Frosted Flakes, is splitting its business in two: its namesake cereal division, and a snacks business dubbed Kellanova

Applied Materials $AMAT boosts dividend by 23% and share repurchase program by an additional $10B, representing around 10% of its market cap at announcement!


6 Financial Ratios that every investor must know!!

"Earnings don't repay loans, Cash flow does"

Private market markdowns -- $23 billion in value was lost from Tiger Global's venture wagers last year

Amgen to cut 450 jobs in second round of layoffs this year

$OXY will be Warren Buffett’s cheapest and easiest acquisition.. like a slow dripping faucet.. robbery in broad daylight.. and the market isn’t batting an eye!

What's the opposite of $SIVB $BAC $WFC $FRC large MTM losses on HTM securities?

"I personally have spent $50,000 in 3 months in Clash of Clans" - CEO of $MTCH Bernard Kim

This is nuts. $MMM might have $50 billion in legal liabilities on an enterprise value of $69 billion.

Schwab Market Update: Stocks are rising as the consumer price index (CPI) indicates core prices (excluding food and energy) were higher in February than in January, but lower than in February 2022.

#sp500 earnings estimates continue to drop for 2023, now at new lows, and a 17.6 PE for no growth is an insanely high valuation

Kiss your rate hikes goodbye

Zuck with an open letter to every company in tech