Wrap – Week Ended 3/10/23



We're traveling this weekend so this will be brief.  Almost made it to Spring Break without a bank blowing up due to forces well known to said bank for months now. The ZLT gave back more than the prior week's gain falling 12.8%, slightly underperforming our benchmarks on the week on weaker than group performances from our oil service and gassy upstream names.

Holdings Watch:

  • We added to two oil service names and sold one renewables names last week but were mostly quiet, not adding early in the week after the prior week's rally.
  • The blotter is updated.

Questions about the site may be directed to zman@zmansenergybrain.com 

Questions and comments under The Wrap will be addressed in the Monday post.

Have a good weekend,





5 Responses to “Wrap – Week Ended 3/10/23”

  1. 1
    zman Says:

    “WASHINGTON, DC — The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg:

    Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.

    After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

    We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.

    Shareholders and certain unsecured debtholders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.

    Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

    The U.S. banking system remains resilient and on a solid foundation, in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry. Those reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure that depositors’ savings remain safe.”


  2. 2
    zman Says:

    Odds of the Fed tightening at next week’s meeting:
    Friday night were 32% for 25 bp and 68% for 50 bp.  
    currently 82.6% for 25 bp, 17.4% for 50. 

  3. 3
    Anonymous Says:

    What a great time to be a well-connected, California venture capital firm!

  4. 4
    Anonymous Says:

    The crit­ics have a point. For the sec­ond time in 15 years (ex­clud­ing the brief Covid-caused panic), reg­u­la­tors will have en­cour­aged a credit ma­nia, and then failed to fore­see the fi­nan­cial panic when the easy money stopped. De­moc­rats and the press corps may try to pin the prob­lem on bankers or the Trump Ad­min­is­tra­tion, but these are po­lit­i­cal di­ver­sions.

  5. 5
    Anthony Says:

    GS: No rate hike for March. Considerable uncertainty when they resume.

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