US Banks Are Crashing

Tyler Durden's picture

"Fortress balance sheets"?

The Brexit contagion is spreading as USD liquidity and counterparty risk in the interconnected global financial system has reached US banks with Goldman at 3 year lows and BofA and Citi plunging over 12%. This happens just two days after the Fed released its latest stress test results finding that none of the 33 banks tested would need additional capital in case of a "severe" financial crisis. That conclusion may be tested soon.

BofA and Citri are ugly:


S&P Financials ETF is down almost 8% in the last 2 days - the biggest drop since the summer of 2011 US downgrade... and below the August crash close:


Who could have seen this coming?

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santafe's picture

Reaping what was sown.

J S Bach's picture

They're "falling"... not "crashing".  Crash implies total destruction.  "Fall" implies downward descent.

Sorry to be anal about it, but, words mean things.

ParkAveFlasher's picture

Disaster ... called home to the wife to go check my physical pm, it was all still shiny but then she had a boating accident and it was all lost!  Woe is me!

FL_Conservative's picture

Mr. Yellin says everything is good??  Phew!  That makes me feel so much better!


BTW, I hate when those boating accidents happen. Damn shame!

Harlequin001's picture

'This happens just two days after the Fed released its latest stress test results finding that none of the 33 banks tested would need additional capital in case of a "severe" financial crisis'

So what's everyone so worried about then?

Heavy's picture

Is that you, Hank Paulson?  Is this me?

Citxmech's picture

No shit, huh?  

Same with the EU FWIW.

It sure must be a robust organization if the threat of just one member leaving is enough to sink the whole deal.

Harlequin001's picture

Well it's not sunk yet has it? I mean, give it an hour or two...

TheReplacement's picture

But your wife is fine right?  Double dose of woe for you.

SuperRay's picture

It's "shocking" "stunning" "(insert overused gerund here)"

Nobody For President's picture

You are correct, Johann.  The crash is scheduled for Friday, when DB goes down...

(And thank you for reminding me to put on a little Bach for background to todays 'adjustment'.)

On Friday, it will be Tchaikovsky and the 1812 Overture...

The one with real cannons:

Top Martian's picture

I absolutely love the cuts that include the real cannons. Timbales dont do the song justice.

Nobody For President's picture


Some may suggest Vaaaghner's 'Ride of the Valkyries' (due to its brilliant use in Apocalypse Now), but that we save for Yellen and crew's helicopter money drop.

(Yeah, I know it's Wagner, but I had a pretentious acquaintence in college that prounced it that way - she was cute, but not cute enough to put up with that shit.)

For those not in the market, and viewing soley as entertainment, may I suggest, along weith your popcorn, a little can-can music: for the Crash. Ten hours should be enough.

And finally, for Trump fans: Rossini -

Thus ends today's classical music lecture...

new game's picture

jump and crash, fuckers...

Manthong's picture

“This is the captain speaking… If you will look out either side of the aircraft, both of our engines have exploded, the wings are on fire, we have lost control and are falling. Please remain calm because the crash will not occur for a few minutes yet. Just loosen your seatbelts, sit back and relax because there is nothing that will save you now.“


xtop23's picture

...... and if you have the time please peruse the airline ETF prospectus we have provided in the back pouch of the chair in front of you, as we accelerate to terminal velocity toward the ground below. Thank you.

ZH Snob's picture

time for a stress test of the stress test.

IridiumRebel's picture


101 years and counting's picture

Lew: "no financial crisis from brexit".  let me paraphrase:

"good luck stock bulls.  you're on your own, you greedy morons.  we conned you again.  haha haha haha"

RadioFlyer's picture
RadioFlyer (not verified) Jun 27, 2016 9:12 AM

Here, hold this nail gun.

NoDecaf's picture

Nail yourself twice in head then jump fuckers!!

new game's picture

and may the nail gun land just right to pound the gun and a nail right the fuck in your head as it crushes from impact. I would fucking love to see this action in slow motion as the brains, skull fragments and blood splats on the concrete...

i luv bankers...

Berspankme's picture

Pretty soon Barack Chavez will take to the airwaves

Shizzmoney's picture

At least Chavez tried (and failed) to be an actual socialist.  

Obama is a (pretend) socialist in the streets but an actual Wall St fascist in the sheets.

That's the problem with people diagnosing political problems today.  They think it's ideologies like capitalism and socialism that need to be shifted; where in fact, we just need some god damn honest leaders.  I don't care what sides Stien or Trump or Sanders lean towards - but at least they are honest.  

The people "running" things today are not honest.  If you asked me what are the policies that Mitch McConnell or Obama support, I'd have no idea.  All I know is that they help rich people, on one "side" of the political spectrum or the other, and that's it.  

Killdo's picture

psychopaths are like that - they are great actors and know how to press your buttons in the right way to get the reaction they want. (i.e. talk like a Marxist, act like a robber barron) Masters at turning somoene's goodnes against them etc...There is no way to understand modern Western  countries  (especially the USSA or the UK where they run the country) without understanding how psychopaths work. here is a great primer on how to spot them and not get fucked by them:

swmnguy's picture

An excellent recommendation.  That book scared the hell out of me.

In my personal experience, I've encountered 3 people I'm certain were/are psychopaths.  I can't deal with them at all.  The only thing I've been able to do is get the hell away from them.  They know I've seen them for what they are, and each of us knows if we ever cross paths again it won't go well for one or both of us.  So I've stayed away from them, and they've stayed away from me.

It can be tricky to spot them.  Some people who seem like possible psychopaths are actually alcoholics or  some other form of addict.  Some are extremely insecure people who are right  on the edge of fight-or-flight panic.  And some psychopaths hide themselves under a mask of more-reasonable dysfunction, and pretend to be alcoholics, addicts or insecure ticking time bombs.  It's a good cover.  Gets lots of sympathy and misdirected attention.

But if you ever spot one for sure, it's like that moment in every re-telling of "Dracula" when the young protagonist realizes the dignified, urbane Count is actually a terrifying, loathsome monster.  Once you see it and know it, you can't un-see or un-know it.  And it's almost impossible not to give away that you know.  Once the psychopath knows you know, it's on, and it's a matter of life and death to them.  Fleeing with utmost speed, waving arms and screaming if possible, is the best course of action I can advise.

Hard to do when they run your government and economy, but it's better to know than to not know.

swmnguy's picture


I don't know that Obama ever tried to pretend he's a Socialist.  A few of his dumber, hopelessly idealistic follower may have thought he was a Socialist; don't know why, as he was talking about privatising Social Security and the "need" to impose Austerity on the American people to benefit Finance since he was a representative in the Illinois state legislature.

Obama's opponents have called him a "Socialist" because they think Americans will reflexively oppose anything called "Socialism."  Bernie Sanders has done a pretty good job putting paid to that outdated notion, however.

No Socialist has ever favored diverting the wealth of the nation into corporate hands to make the Finance sector appear not to be utterly insolvent.  The French "Socialist" Party is as anti-Socialist as any of the others.  When control of the economy is solidified in corporate hands, it's not Socialism.  Nor is it liberal "free-market" Capitalism, as is supposedly the dominant ideology in the developed world.  It's a hybrid version of Mussolini's "Corporatism," or as we call it, "Fascism."

Prinicpled people have long seen the corner our corporate finance capitalism was painting itself into.  They've been mostly pushed out of any postion of power by opportunists who see huge short-term opportunities co-opting the collapse they all know is inevitable.  Most of those opportunists are full-blown psychopaths.

You get to a point where you'd vote for a monster you knew was at least honest, if only for the novelty of it.

OregonGrown's picture

Ok.... Who brought the nail gun?


Silver Bug's picture

Look out below, this could be the beginning of the end for this highly corrupt and fradulent system the elites have built. Good riddance to them I say.

Max Cynical's picture

In the mean time, they're going to teach us a real lesson.

Doubleguns's picture

A house of cards does not crash. 

hibou-Owl's picture

That's right cards have little mass (substance), they flutter, and burn real well.

dcau1's picture

That's a shame

clue4sum's picture

Time to warm up the printing press?

ParkAveFlasher's picture

Time to gas up the helicopters.

chiswickcat's picture

"Perkins, get the farm/ranch ready"

FranSix's picture

Guys, this is ugly coffee.

American Psycho's picture

Put that coffee down!  Coffee is for closers.

PavlovPup's picture

+100 for Glengarry Glenross


Jethro's picture

Ahhh, darn. Those poor banksters.

Dr. Engali's picture

They aren't crashing fast enough.

yellensNIRPles's picture

Still too early to tell. I hope the financial SHTF and we get this show on the road, I do.

But it's not even 3pm yet.

WOW101's picture

Countdown to the PPT......

Bam_Man's picture

PPT has been smashing the VIX all morning to keep the Dow from being down 1000+ points.

1stepcloser's picture

No worries! They all passed the stress test...right Fed?

peddling-fiction's picture

Now they really are stressed...

Yen Cross's picture


Tyler that was "well done".   Stateside banks are just as [asses and elbows deep in debt as their european counterparts] THey just have MOAR N.Y. Fed. slush $ to play with.

 Ask that shapeshifting Iguana Greenspan,,,, Why[overnight] rates always drop from the ponzi 50 basis points, to zero every EOQ [[end of quarter]] ?

 No mas reverse REPOS?