Late at night! 35% crash, the US retail giant filed for bankruptcy, and the wave of bankruptcy hit! 7000 billion deposits fled urgently, and the bank plunged 22%

Overnight, U.S. dividend bearish news continued.

First of all, 3B Home, once the largest household goods retail giant in the United States, announced that it has filed for bankruptcy protection. Affected by this news, after the opening of U.S. stocks overnight, 3B Home Furnishing's stock price once plunged by more than 40%, and as of the close, the decline was still as high as 35.7%, which expanded the company's stock price decline to 92.5% during the year.

The bankruptcy of 3B Home may only be a microcosm of this round of bankruptcy in the United States. Recently, a number of companies in the US retail industry have filed for bankruptcy protection, including David's Bridal, the largest wedding dress retailer in the United States. In addition, according to a new report released by S&P Global Market Intelligence, the number of bankruptcy filings in the United States in the first quarter of 2023 was 183, "more than any comparable period in the past 12 years."

Just now, another American bank sent red flags. After the US stock market on April 4, local time, First Republic Bank announced that as of the end of the first quarter, First Republic Bank's deposits were 24.1045 billion US dollars, a sharp decrease of about 720 billion US dollars (about 5000 billion yuan) from the previous quarter, a decrease of nearly 41% from the previous quarter, and the net outflow of deposits far exceeded market expectations. If deposits brought by JPMorgan Chase and other major banks are excluded, the actual loss of deposits by First Republic Bank exceeds US$1000 billion, reaching US$1020 billion (about 7076.22 billion yuan). Affected by this, the share price of First Republic Bank fell by more than <>% after hours.

Sudden announcement: bankruptcy

On April 4, local time, Bed Bath & Beyond, the former largest household goods retail giant in the United States, announced that the company and some subsidiaries filed an application for voluntary relief in the New Jersey District Bankruptcy Court under Chapter 23 of the US Bankruptcy Code.

3B Home suddenly announced that it was filing for bankruptcy protection because the company failed to raise enough capital to maintain operations.

Affected by this news, after the opening of the US stocks, 3B Home Furnishing's stock price once plunged by more than 40%, and as of the close, the decline was still as high as 35.7%, making the company's stock price decline expand to 92.5% during the year, and the total market value was only 0 million US dollars (about 81 million yuan).

According to previous media reports, the company needs to raise $4 million by selling shares by April 26 to avoid Chapter 3 restrictions in the US bankruptcy law, and if the allotment fails, it will lose its eligibility to continue operating.

3B Home said in a statement that the company's 360 eponymous stores and 120 Buybuy Baby stores will continue to operate during the bankruptcy process and continue to pay employee wages and benefits and meet obligations to suppliers, and has secured approximately $2 million in "debtor-held assets" financing commitments from lender Sixth Street Specialty Lending to maintain operations during the asset liquidation process.

As of the end of November 2022, 11B Home had approximately US$3.44 billion in assets and US$52.25001 billion in debt, with a total of 50000,<> to <>,<> creditors, according to court documents.

It is worth mentioning that 3B Home was once the largest retailer of household goods in the United States, with stores in the United States, Canada and Mexico, and at its peak, the total market value of 3B Home once exceeded 300 billion US dollars (about 2070 billion yuan).

Faced with the huge impact from Amazon and other online retailers, 3B Home Furnishing's sales continued to decline.

Since January, 1B Home has been warned of "troubled and on the verge of bankruptcy" when the company issued a "going concern" notice saying it may not have cash to cover day-to-day expenses after a dismal holiday sales season.

Wave of closures

Recently, a number of companies in the US retail industry filed for bankruptcy protection, including David's Bridal, the largest wedding dress retailer in the United States. The company suddenly announced that it was filing for bankruptcy and would close all stores if it could not find a buyer quickly.

Bob Nardelli, former CEO of Home Depot, another home furnishing retail giant, also warned that the current "very complex" economy in the United States puts medium-sized companies under "tremendous pressure."

Nadley believes that in the coming period, we will see many companies go bankrupt because more and more companies have "inventory backlogs". The complexity of the U.S. economy today is not seen in nearly 52 years.

Since the beginning of this year, the bankruptcy momentum of small and medium-sized enterprises in the United States has been particularly fierce. According to a new report released by S&P Global Market Intelligence, the number of U.S. corporate bankruptcy filings in the first quarter of 2023 was 183, "more than any comparable period in the last 12 years." Among them, 3 U.S. companies filed for bankruptcy protection in March, up from 71 in February and more than double the 2 in the same period a year earlier. This is also the highest monthly level since 58 bankruptcies occurred at the beginning of the pandemic in July 33.

Among them, the consumer goods industry is the industry with the most bankruptcies so far this year, but the increase in bankruptcy filings in the financial sector puts it in close second place with the healthcare industry, with 14 bankruptcies each.

In addition, the UBS analyst team also recently warned that more than 5,94 retail stores in the United States may be permanently closed in the next five years, which will reduce the number of retail stores by about 5% from the current <>,<>.

Another bank suddenly reported a big bearish

Another US bank sent red flags. After the U.S. stock market on April 4, local time, First Republic Bank announced that revenue in the first quarter of this year fell 24% year-on-year to $14.12 billion, higher than market expectations of $11.2 billion, and net interest income fell 19% year-on-year to $9 million, higher than the expected $23.8 million.

However, as of the end of the first quarter, First Republican Bank's deposits were only US$1045.2022 billion, a sharp decrease of about US$1765 billion (about 720.4965 billion yuan) from US$41.1450 billion at the end of 1530, a decrease of nearly <>%, and the net outflow of deposits far exceeded market expectations, StreetAccount's consensus expected a deposit balance of about US$<> billion at the end of the quarter, and FactSet's analysts expected a median deposit of US$<> billion.

If the US$300 billion in deposits brought by JPMorgan Chase and other major banks is excluded, the actual loss of deposits by First Republic Bank in the first quarter exceeded US$1000 billion, reaching US$1020 billion (about 7034.<> billion yuan).

After the release of the data on the large outflow of deposits, the share price of First Republic Bank fell sharply after hours, with the largest drop of more than 22%. On the eve of the earnings report, First Republic Bank was sought after by funds, and its share price jumped 12.2%.

First Republic Bank disclosed that it received additional liquidity through JPMorgan Chase, the Federal Reserve and the Federal Housing Loan Bank (FHLB) during the bank run last month, strengthening its own financial level. On March 3, the bank's total borrowings peaked at $15.1381 billion, when it had $340 billion in cash on its balance sheet, and by April 4, total borrowings had fallen back to $21.1041 billion, with cash and cash equivalents of just $100 billion.

Other sources of financing the bank received by March 3 included secured short-term borrowings from the Federal Reserve, securities sold under repurchase agreements, and medium- and short-term loans from FHLB totaling $31.1059 billion.

Credit Suisse, the newly acquired banking giant, also suffered an epic run, and on April 4, local time, Credit Suisse announced its financial report showing that Credit Suisse's net asset outflow in the first quarter reached 24.612 billion Swiss francs (about 4551.2022 billion yuan), accounting for 5% of the group's assets under management by the end of 57, and deposit outflows accounted for <>% of the net outflow of Credit Suisse Wealth Management and UBS in the quarter.

It is worth mentioning that this may be the last earnings report in the bank's 167-year history, and its acquisition by UBS is expected to close soon. (Brokerage China)