Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

WB was answering a question right after the lunch break on Saturday about the current woes in banking.

He was making a point about just how messed up and ill aligned the banking regulators are.

In Navy's video clip, Warren said that he and Charlie could have done the work of 150 people or so at the Federal Housing Finance Agency.

What was he referring to as 'if __________ weren't/wasn't sticky anymore, they are just living in a different era"? Was he saying 'private insurance' or 'mortgage rates'?

Deposits.

Warren was saying that if anyone in banking thinks "Deposits" are "sticky" anymore, they are just living in a different era.

Warren is saying that bank regulators (Jamie Dimon said this too in his latest quarterly earnings call) and others believe that bank depositors (basically the funding for banks) tend to not move their funds rapidly from their primary bank and are "sticky".

The reality is SVB, where depositors showed bank regulators and SVB management that $40 BILLION in deposits can be moved from 1 bank to another financial intermediary in as little as 1 day and therefore are NOT STICKY.

Bill Ackman the other day tweeted a great article on this from Bloomberg.

It's a great read, just go over to his Twitter account page.