Stock Market Playing Kick the Can with Liz Young, Jim Chanos and Danny Moses

Guy Adami (0:00)

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Dan Nathan (1:32)

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Welcome to our Monday edition of On The Tape. I am Dan Nathan. I am joined as always by Guy Adami, and on Mondays, our co-host, EY from SoFi. That would be Liz Young. Welcome people to this March Madness edition. Do we have any thoughts here? Oh, Liz lost her marquette. Guy, your Rangers are just on fire. 13-0 in two games?

Guy Adami (2:21)

So Madness is not taking place at these bullshit college basketball games. It's actually taking place in the magic world of Madison Square Garden, which oddly enough will be the home of the tournament over the next week or so, Dan.

Dan Nathan (2:33)

Yes, and Liz, we were pulling for your marquette, whatever they called. What do they call it?

Liz Young (2:36)

Golden Eagles. March Madness is over as far as I'm concerned.

Dan Nathan (2:40)

It is over for you.

Liz Young (2:41)

It's done.

Dan Nathan (2:41)

But let me tell you something. There's madness in the markets right now. So we're recording here shortly after the open on Monday. And I think all weekend long, a lot of investors were waiting to see what was going to happen with the Credit Suisse and UBS kind of forced merger, let's call it a bailout. Let's call it what it is here, especially with that backstop that you're getting from the Swiss National Bank. And then the other one over here, First Republic. Guy, you saw that, that guy, Tom Barrack, he was charged with finding something to shore up this bank here, and which I think is kind of funny in a way, because this is the one where Friday afternoon, it hits after the close. Danny might call that a Friday night dirty.

And just by the way, before we kind of finish the First Republic thing, stick around because at the other half of this podcast recording, Danny Moses and I spoke to Jim Chanos of Chanos & Co. on Friday afternoon on a very special market call, and we're going to put the audio in this feed. That was a great conversation, so stick around for that. But Tom Barrick was charged with, I don't know what that meant, Guy, helping them do a private sale of equity of a public stock, right? The stock immediately starts trading down in the aftermarket on Friday. It was down 25%, I think, on its first pre-market prints this morning. It's trading a little bit better right now, down 12.5% or so. But what do you make of this? Because, again, if you want to focus on these two banks, one being Credit Suisse, the other being First Republic, which are you going to place more emphasis on for the trading week right now?

Guy Adami (4:10)

Well, First Republic, I think, is more important. I mean, I think Credit Suisse and UBS have their own issues, and we've been talking about European banks seemingly forever on the different shows that we do. But First Republic is a bank that a lot of people loved. It was one of the darlings of the banking sector for a long time. You heard people wax poetic. And effectively, what is it saying? I mean, there are a lot of people out there that believe the equity is headed to zero. I'm not necessarily one of those people, but that $30 billion that they got from the 11 different banks last week in terms of deposits, that's for 120 days, which goes by really quickly as you know. So I'm not quite sure what happens after that. I guess there's this hope that that $30 billion will provide stability over that period of time and maybe they can sort of right the ship. But I gotta tell you something, the way the stock is trading, people are selling first, asking questions later.