This is why you should never even consider voting republican.
Vote Dem
Vote third party
Don't vote at all.
There's your only options, choose wisely.
The managers of this bank were supremely stupid about how they managed their exposure to interest rate risk. And by “supremely stupid”, I meant that stupidly held a sizable amount of their interest-bearing assets in longterm government bonds. When interest rates spiked due to the Fed moving to slow down the economy — and rein in inflation, the bank’s bond portfolio lost a LOT of value, especially so for a bank that had over 4/5ths of its deposits not protected by the FDIC $250,000 limit per depositor, something like $150+ BILLION. Those kinds of deposits are SUPER sensitive to any whispers of a possible problems with the bank’s net worth, which is why the bank so quickly experienced a devastating bank run.
In essence, those idiot bank managers would get an F in my Financial Institutions course for such a massive fuck-up.
Addendum: Their unprotected deposits were over 90% of deposits, $155B out of $173B. So, yeah. Effing stupid.
The CEO of Silicon Valley Bank was also on the board of directors at the Federal Reserve Bank of San Francisco. He was removed Friday.
"In Canada, only two small regional banks have failed since 1923 when the Home Bank of Canada failed. This was both Canadian Commercial Bank and Northland Bank in September 1985."
That's right. We don't trust no Rockefeller, no Abromowitz.
Free enterprise with an asterisk
If they held the bonds to maturity that might have been one thing but they needed to sell as the tech startups gegqn needing cash more than ever as VC’s weren’t in the position or as willing to fund them. Even if they didn’t sell the bonds they needed to mark them to market (present value which because interest rates went up their value went down)
Druff’s observation about a “bank run” was just icing on the cake.
But yes, the dumbest finance guys are in banking and the Fed. It’s something you can count on.
Whether banking as we know it now exists in ten years is a very interesting proposition. The answer is no especially because of the coming CBDC
"Regulations, schmegulations, we'll figure it out later
Free flag with every deposit"
I had to
Bank failures U.S.. since 2009
You guys got it all worked out
Year Total number of bank failures: 512 2023 1 2022 0 2021 0 2020 4 2019 4 2018 0 2017 8 2016 5 2015 8 2014 18 2013 24 2012 51 2011 92 2010 157 2009 140
There's a sign post up ahead
Don't freak out just yet
This data came from mainstream media, so, you know
idiots
good luck crossing the border to Mexico
the word is out
Last edited by limitles; 03-11-2023 at 01:54 PM.
This bank story only matters to me for what it portends about the future. More honestly, it begins to confirm Tellafriend and my forecast.
A thought that revisits me daily is that every business is using present inflation as “cover” to raise prices on their goods or services. Higher prices equal better profits. Higher prices and smaller packages lol.
Inflation isn’t going to be transitory by anyone’s definition. Nobody has any notion of the 70’s and 80’s which allows for behavior which guarantees a redux of that period. It’s magical how short and longer term cycles work. It is very much human psychology at play.
Being an autistic iconoclast gives me super powers
Silicon Valley Bank Chief Administrative Officer served as Lehman Brother’s CFO prior to joining the bank.
All the markets that are open over the weekend all the risk on assets are slightly up.
If word was out that they were going to allow collapse this shit would be down 25%.
One of the wall street banks is going to get the bargain of a lifetime. A company with federal backing.
what if you are paying a bank a mortgage and it goes under. What happenes?
Easy solution.
Fed cuts rates to 0%, then the value of the fixed-income securities covers the deposit liability.
I have Wells fargo think I saw them in this thread,
The SVB collapse must be Joe Biden’s fault and the woke mob.
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