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

[Jayjami]

We have a system where they can and do bribe our supposed law makers, total regulatory capture.
They get bailed out and nobody goes to jail, the banks that don't fail are doing it wrong.

Why do you use “our”? You’re a Russian troll. Quit pretending to be an American.

[dwai]

We have a system where they can and do bribe our supposed law makers, total regulatory capture.
They get bailed out and nobody goes to jail, the banks that don't fail are doing it wrong.

Why do you use “our”? You’re a Russian troll. Quit pretending to be an American.

[Entropy]

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.

[Jayjami]

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.

Dude, both parties are corrupt as fuck. I choose to accept it. I feel blessed to live in America, even with its flaws.

[devidee]

[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.

[devidee]

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.

[limitles]

"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

[Sanlmar]

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

[limitles]

"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

"Regulations, schmegulations, we'll figure it out later
Free flag with every deposit"

I had to

Bank failures U.S.. since 2009

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

You guys got it all worked out

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

[Sanlmar]

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

[limitles]

This story only matters to me for what it portends in 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.

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

That sounds like a mail out from the bank.
Bigger picture. Have you heard of patterns?

Joe's Fish and Chips goes out, oh well.
Joe's Bank?
It's more accounting than psychology

[devidee]

Silicon Valley Bank Chief Administrative Officer served as Lehman Brother’s CFO prior to joining the bank.

[Daly]

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.

[FRANKRIZZO]

what if you are paying a bank a mortgage and it goes under. What happenes?

[Daly]

what if you are paying a bank a mortgage and it goes under. What happenes?

Gets sold to a third party and added to the funds available to be disbursed to creditors.

[turdzilla]

Easy solution.

Fed cuts rates to 0%, then the value of the fixed-income securities covers the deposit liability.

[FRANKRIZZO]

I have Wells fargo think I saw them in this thread,

[WSPreadHead]

This might belong in the Bitcoins Donkdown thread, but I think it's more appropriate here.

$3.3 billion of USDC's reserves were at Silicon Valley Bank: https://www.coindesk.com/business/20...n-valley-bank/


It immediately fell to 0.993, but has since popped back to 0.996.

If you have USDC, time to sell. BTW, other stablecoins such as BUSD, DAI, and TUSD are also down. Tether is actually up for the moment, so I'm guessing people are moving to there.

Whether this event is going to kill some stablecoins remains to be seen. USDC is the second largest one. I read reports that it was depegged from USD, but those have been deleted, soooo...

USDC seems to be climbing back up (currently at $0.98)... Circle has vowed to cover the $3.3 billion, so the hopium is growing

[BartHanson]

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