Silicon Valley Bank has FAILED, becoming the largest US bank failure since 2008

[OK2]

The SVB collapse must be Joe Biden’s fault and the woke mob.

NSFW:

 

[Tellafriend]

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

it's as if they had never heard of laddering their bonds. smh. nothing makes sense any longer. time to take my ball and go home.

[Tellafriend]

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[Dan Druff]

Everyone in crypto watching USDC reaaaaaaaallllllll carefully, as its collapse could have huge implications. Even outside of crypto it could have huge implications.

It has rebounded from 87c to 96c, so maybe it will be okay.

[devidee]

BREAKING: Janet Yellen says the government won't bail out Silicon Valley Bank.

[MumblesBadly]

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.

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

But when you are financial instititution funded primary by short-term deposits that can be withdrawn very quickly, it is a MASSIVE mistake to invest those deposits in long-term bonds if unhedged by positions in interest rate futures because the interest rate risk is magnified by the diffential in maturities of the assets versus the liabilities. This concept is a core principle taught in an intro undergraduate course on banks and financial institutions.

The managers of SVB absolutely knew of this risk and arrogantly ignored it. IMO, they should have their pay and bonuses from over the previous year or two clawed back to help make the depositors whole as a message to the managers of other banks.

[OK2]

While Silicon Valley Bank careened toward its spectacular collapse, the bank's head of risk management for Europe, Africa and the Middle East devoted a chunk of her time to various LGBTQ+ programs.

https://www.zerohedge.com/markets/fa...-lgbt-programs

[Daly]

While Silicon Valley Bank careened toward its spectacular collapse, the bank's head of risk management for Europe, Africa and the Middle East devoted a chunk of her time to various LGBTQ+ programs.

https://www.zerohedge.com/markets/fa...-lgbt-programs

Let me give you a little secret. Anyone at the VP level at any of these banks is involved in some sort of diversity and inclusion project. Its mandatory.

[Daly]

BREAKING: Janet Yellen says the government won't bail out Silicon Valley Bank.

The bank its self…. Meaning the investors in SVB wont be bailed out. So if you own shares of stock in said bank your investment is going to zero.

The clients who have money on deposit at SVB….. Id say there is a very good chance there will be something put in place to guarantee said deposits.

Could be FDIC….. could be a forced sale of the bank to another bank with (or without, but bot likely) government help….. could be some negotiated group of government and private…….

Way way way goo much systemic risk that they can take care of Monday morning and instal confidance

[OK2]

While Silicon Valley Bank careened toward its spectacular collapse, the bank's head of risk management for Europe, Africa and the Middle East devoted a chunk of her time to various LGBTQ+ programs.

https://www.zerohedge.com/markets/fa...-lgbt-programs

Let me give you a little secret. Anyone at the VP level at any of these banks is involved in some sort of diversity and inclusion project. Its mandatory.

I know

It's absolutely disgraceful

ESG is cancer

Related:

https://www.zerohedge.com/markets/co...ool-admissions

America’s top medical schools, worried they have too few minority students, are doing something about it.

They are lowering academic standards for admission and trying to hide the evidence.

Columbia, Harvard, the University of Chicago, Stanford, Mount Sinai, and the University of Pennsylvania have already done so. The list already tops forty, and more are sure to follow.

After the covid capitulation career comfort clinging cult corrupt cringe crew completely castrated their credibility they're now adding even more incompetence into the system. Diversity!

Prepare for the lack of care to spiral even further

[limitles]

Let me give you a little secret. Anyone at the VP level at any of these banks is involved in some sort of diversity and inclusion project. Its mandatory.

I know

It's absolutely disgraceful

ESG is cancer

Related:

https://www.zerohedge.com/markets/co...ool-admissions

America’s top medical schools, worried they have too few minority students, are doing something about it.

They are lowering academic standards for admission and trying to hide the evidence.

Columbia, Harvard, the University of Chicago, Stanford, Mount Sinai, and the University of Pennsylvania have already done so. The list already tops forty, and more are sure to follow.

After the covid capitulation career comfort clinging cult corrupt cringe crew completely castrated their credibility they're now adding even more incompetence into the system. Diversity!

Prepare for the lack of care to spiral even further

I know you don't get it but this for anyone else reading.
Your copy and paste contribution was taken from an opinion piece.
Not based on fact. That's important
Carry on pea brain.

Regulations? "No way this is Merica."
You're getting played by your neighbour.

[OK2]

I wish they would just employ the (heeb™) whip it out and see method with CBDC's instead of all the bullshit coming down the line

[OK2]

I know

It's absolutely disgraceful

ESG is cancer

Related:

https://www.zerohedge.com/markets/co...ool-admissions

America’s top medical schools, worried they have too few minority students, are doing something about it.

They are lowering academic standards for admission and trying to hide the evidence.

Columbia, Harvard, the University of Chicago, Stanford, Mount Sinai, and the University of Pennsylvania have already done so. The list already tops forty, and more are sure to follow.

After the covid capitulation career comfort clinging cult corrupt cringe crew completely castrated their credibility they're now adding even more incompetence into the system. Diversity!

Prepare for the lack of care to spiral even further

I know you don't get it but this for anyone else reading.
Your copy and paste contribution was taken from an opinion piece.
Not based on fact. That's important
Carry on pea brain.

Regulations? "No way this is Merica."
You're getting played by your neighbour.

[OK2]

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[devidee]

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[devidee]

Thank God Donald Trump didn’t get re-elected. All of the banks would be collapsing right now and we’d be on the brink of WW3!

[Daly]

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And they can reverse this with the push of a button on monday.

This isnt 1929

[Sanlmar]

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And they can reverse this with the push of a button on monday.

This isnt 1929

Money supply contraction is the goal

[Sanlmar]

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Depositors are getting bailed out. Tech Lib Cali Donors? It’s automatic.



We will invent a new description for 2023 though. “Bailout is too boomer”. She was such a weasel on the Sunday morning shows

You’d swear Yellen was too busy with abortion and Ukraine to be hands on here

[OK2]

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one month ago