Silicon Valley Bank Goes Under, Won't be the Last...
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2023 Mar 10, 9:47am 43,627 views 326 comments
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67
Patrick
2023 Mar 11, 11:01pm
Patrick
2023 Mar 11, 11:01pm
https://www.charlotteobserver.com/news/business/banking/article272975790.html
Wells Fargo apologizes, pledges fix to computer glitch and incorrect account balances
Wells Fargo promised to fix by Saturday a nationwide computer glitch that left irate customers with incorrect — and sometimes negative — balances and missing transactions, according to a spokesman. It will also refund fees customers incurred because of the issue. Some customers started their Friday morning routines hoping to see their latest paychecks directly deposited in their accounts. Instead, they had negative balances, a number of customers reported on social media, and a message from the bank: “If you see incorrect balances or missing transactions, this may be due to a technical issue and we apologize. Your accounts continue to be secure and we’re working quickly on a resolution.”.
68
Patrick
2023 Mar 11, 11:02pm
Patrick
2023 Mar 11, 11:02pm
https://www.dailymail.co.uk/news/article-11846823/Fears-Silicon-Valley-Bank-collapse-hit-Republic-Bank.html
Fears Silicon Valley Bank collapse could topple First Republic Bank next, as shares slump 40% in a month and investors voice concerns over losses on its investments
Silicon Valley Bank was taken over by the government on Friday morning - the largest bank failure since Washington Mutual's fall in 2008
The bank's demise is a combination of a difficult economic environment and rising interest rates: it remains to be seen whether a savior can be found
Now investors are concerned about First Republic Bank, whose share price plummeted 50 percent on Friday
70
AD
2023 Mar 11, 11:28pm
AD
2023 Mar 11, 11:28pm
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From what I could tell most of the executives at Silicon Valley Bank (SVB) were flunkies from other banks, and I did not see within the SVB executive ranks any alum from Goldman Sachs or Morgan Stanley
Nor did I see any Wharton business school grads
Seems like SVB got the B-listers and Woke brigade for their management
.
From what I could tell most of the executives at Silicon Valley Bank (SVB) were flunkies from other banks, and I did not see within the SVB executive ranks any alum from Goldman Sachs or Morgan Stanley
Nor did I see any Wharton business school grads
Seems like SVB got the B-listers and Woke brigade for their management
.
71
Booger
2023 Mar 12, 7:21am
Booger
2023 Mar 12, 7:21am
Isn't this going to make people less likely to buy mortgage backed securities?
I'd think that this would, at the very least make MBS's less desirable and therefore make mortgage rates higher.
Plus the dump of MBS on the market just from SBV
I'd think that this would, at the very least make MBS's less desirable and therefore make mortgage rates higher.
Plus the dump of MBS on the market just from SBV
72
GNL
2023 Mar 12, 8:14am
GNL
2023 Mar 12, 8:14am
I've heard a ton of overblown BS over the last 3-4 years now. Hard to believe ANYTHING bad is going to happen.
73
RWSGFY
2023 Mar 12, 8:47am
RWSGFY
2023 Mar 12, 8:47am
I'm sorry, folks, but we'll have to bail SVB out, because HARRY & MEGHAN HAD ALL THEIR MONEY THERE!!!! HAVEN'T THEY SUFFERED ENOUGH ALREADY?!!!
74
clambo
2023 Mar 12, 8:58am
The bank employees were inept, but there was a chain of events which also contributed.
Congress was spending too much money so it borrowed money by selling debt/bonds/IOUS.
The US Treasury sells them.
The Federal Reserve bought a LOT of them; everyone was concerned that if they flooded the market (worldwide) with bonds they would get bought for less.
The difference between the price a bond gets at the auction and it's face value=the "interest".
Then, the Federal Reserve started selling some of them off to banks.
Then, bank regulators wanted banks to own some "safe bonds".
Then, the Federal Reserve started raising interest rates quickly; this caused the bonds the bank now owned to lose value.
I experienced this myself; I own a couple funds which contain bonds of various types and the accounts have fallen although I don't need cash so I keep collecting the interest.
The bank which is not careful will need to sell something to pay depositors their money and evidently the house of cards collapsed.
Congress was spending too much money so it borrowed money by selling debt/bonds/IOUS.
The US Treasury sells them.
The Federal Reserve bought a LOT of them; everyone was concerned that if they flooded the market (worldwide) with bonds they would get bought for less.
The difference between the price a bond gets at the auction and it's face value=the "interest".
Then, the Federal Reserve started selling some of them off to banks.
Then, bank regulators wanted banks to own some "safe bonds".
Then, the Federal Reserve started raising interest rates quickly; this caused the bonds the bank now owned to lose value.
I experienced this myself; I own a couple funds which contain bonds of various types and the accounts have fallen although I don't need cash so I keep collecting the interest.
The bank which is not careful will need to sell something to pay depositors their money and evidently the house of cards collapsed.
75
RWSGFY
2023 Mar 12, 9:07am
RWSGFY
2023 Mar 12, 9:07am
clambo says
They also were allowed to not mark these bonds to market if they claimed the intent to hold to maturity.
The bank employees were inept, but there was a chain of events which also contributed.
Congress was spending too much money so it borrowed money by selling debt/bonds/IOUS.
The US Treasury sells them.
The Federal Reserve bought a LOT of them; everyone was concerned that if they flooded the market (worldwide) with bonds they would get bought for less.
The difference between the price a bond gets at the auction and it's face value=the "interest".
Then, the Federal Reserve started selling some of them off to banks.
Then, bank regulators wanted banks to own some "safe bonds".
Then, the Federal Reserve started raising interest rates quickly; this caused the bonds the bank now owned to lose value.
I experienced this myself; I own a couple funds which contain bonds of various types and the accounts have fallen although I don't need cash so I keep collecting the interest.
The bank which is not careful will need to sell something to pay deposit...
They also were allowed to not mark these bonds to market if they claimed the intent to hold to maturity.
76
WookieMan
2023 Mar 12, 9:30am
WookieMan
2023 Mar 12, 9:30am
clambo says
It will unfold and we'll probably never find out the truth. Given the name of the bank and a 78% drop from peak of crypto, methinks that has something to do with it. People lost their asses on crypto and they needed to pay actual bills with actual money. They couldn't loan out and make a profit anymore because these startups were too intertwined with crypto and started pulling out deposits.
I don't claim to know the bond shit or other banking talk. But it makes sense people put a ton of money in crypto that it would go to the moon forever, put $10M into crypto that then went to $3M, only had $5M in cash and had to cover their losses. Pulled deposits and the bank can't lend/borrow from the Fed. The question is how much is wiped out? I never even knew SVB existed. It's not like BOA or Chase in flyover country. Seems like a massive regional bank, so losses are going to hit that region bigly.
This seems like a bank that just had too much $$$ wrapped up in businesses that generally don't cashflow that made risky bets on crypto because it was hip and was appreciating. Just like buying 3-4 houses was hip in 2005 because you could.
I don't think it moves the rest of the country much though if we're being honest.
The bank which is not careful will need to sell something to pay depositors their money and evidently the house of cards collapsed.
It will unfold and we'll probably never find out the truth. Given the name of the bank and a 78% drop from peak of crypto, methinks that has something to do with it. People lost their asses on crypto and they needed to pay actual bills with actual money. They couldn't loan out and make a profit anymore because these startups were too intertwined with crypto and started pulling out deposits.
I don't claim to know the bond shit or other banking talk. But it makes sense people put a ton of money in crypto that it would go to the moon forever, put $10M into crypto that then went to $3M, only had $5M in cash and had to cover their losses. Pulled deposits and the bank can't lend/borrow from the Fed. The question is how much is wiped out? I never even knew SVB existed. It's not like BOA or Chase in flyover country. Seems like a massive regional bank, so losses are going to hit that region bigly.
This seems like a bank that just had too much $$$ wrapped up in businesses that generally don't cashflow that made risky bets on crypto because it was hip and was appreciating. Just like buying 3-4 houses was hip in 2005 because you could.
I don't think it moves the rest of the country much though if we're being honest.
77
Booger
2023 Mar 12, 9:44am
Booger
2023 Mar 12, 9:44am
Supposedly Megan and Harry, as well as Oprah had a bunch of money in SVB.
78
fdhfoiehfeoi
2023 Mar 12, 9:44am
fdhfoiehfeoi
2023 Mar 12, 9:44am
Apparently SVB was without a chief risk manager for the past 9 months. Meaning there was supposed to be someone over wokie, but there wasn't.
80
fdhfoiehfeoi
2023 Mar 12, 9:46am
fdhfoiehfeoi
2023 Mar 12, 9:46am
Also, executives sold millions in stock before the collapse. Didn't realize insider trading is now legal...
81
mell
2023 Mar 12, 9:57am
NuttBoxer says
They said it was part of a plan which is usually legal, however if they changed that plan recently to sell or sell more they should be facing criminal charges.
Also, executives sold millions in stock before the collapse. Didn't realize insider trading is now legal...
They said it was part of a plan which is usually legal, however if they changed that plan recently to sell or sell more they should be facing criminal charges.
82
mell
2023 Mar 12, 9:59am
NuttBoxer says
They don't need to. Bunch of startups affected, most people with bank accounts have less than 250k which is the insured amount. Sucks for them, but I'd never open a bank account with svb, they had nothing but negative news for years now and went full retard woke. Don't support woke businesses. Period
Yellen said they won't bail out. Won't or can't...
They don't need to. Bunch of startups affected, most people with bank accounts have less than 250k which is the insured amount. Sucks for them, but I'd never open a bank account with svb, they had nothing but negative news for years now and went full retard woke. Don't support woke businesses. Period
83
RWSGFY
2023 Mar 12, 10:02am
RWSGFY
2023 Mar 12, 10:02am
mell says
If they didn't violate the law as written then we need a better law. Can't charge people based on feelz.
NuttBoxer says
Also, executives sold millions in stock before the collapse. Didn't realize insider trading is now legal...
They said it was part of a plan which is usually legal, however if they changed that plan recently to sell or sell more they should be facing criminal charges.
If they didn't violate the law as written then we need a better law. Can't charge people based on feelz.
84
Booger
2023 Mar 12, 10:04am
Booger
2023 Mar 12, 10:04am
Shopify and Roku will lose a bunch of money here as well.
Those MBS's that SVB will be liquidated at a heavily discounted rate so expect the balance sheets of those two companies to take a major haircut.
Those MBS's that SVB will be liquidated at a heavily discounted rate so expect the balance sheets of those two companies to take a major haircut.
85
RC2006
2023 Mar 12, 10:12am
RC2006
2023 Mar 12, 10:12am
Suprised they arnt trying to push bailout or maybe they are and I havent seen it.
86
mell
2023 Mar 12, 11:25am
RWSGFY says
Not sure if you're allowed to make changes to the plan on material information.
mell says
NuttBoxer says
Also, executives sold millions in stock before the collapse. Didn't realize insider trading is now legal...
They said it was part of a plan which is usually legal, however if they changed that plan recently to sell or sell more they should be facing criminal charges.
If they didn't violate the law as written then we need a better law. Can't charge people based on feelz.
Not sure if you're allowed to make changes to the plan on material information.
87
Ceffer
2023 Mar 12, 11:26am
Ceffer
2023 Mar 12, 11:26am
Without SVB or FTX, the Dems are going to need a bigger launderer for donations? Was SVB the conduit for DOD and DARPA funds to SiCoValley for all of the surveillance and propaganda strategies to be directed against the populace?
88
Ceffer
2023 Mar 12, 11:42am
Ceffer
2023 Mar 12, 11:42am
It seems like somebody is pulling the toothpicks out from under the support structures of the Ponzis. Which Ponzi is next, and when will The FED Ponzi collapse?
89
Ceffer
2023 Mar 12, 11:46am
Ceffer
2023 Mar 12, 11:46am
If they re-name it "Banco Cartel Internacional", then the Rockefellers will bail it out.
90
RayAmerica
2023 Mar 12, 11:47am
RayAmerica
2023 Mar 12, 11:47am
No one seems to be talking about this:
What about the derivatives? How many of these bad loans were used as collateral to make new loans, with this insane process being repeated into infinity?
With the size of SVB, this very well could be the colossal, weak link that breaks the financial chain.
What about the derivatives? How many of these bad loans were used as collateral to make new loans, with this insane process being repeated into infinity?
With the size of SVB, this very well could be the colossal, weak link that breaks the financial chain.
91
WookieMan
2023 Mar 12, 11:48am
WookieMan
2023 Mar 12, 11:48am
Ceffer says
If I'm being honest I think it's just young gun, moronic Californian's, startup types and even bigger businesses that lost sight of the details that got burned on crypto as I've said. Lost a shitload on crypto and freaked that they "actually" had to run a business and drained their deposits from SVB. This is a basic bank run due to losses elsewhere. Basically venture capital got pissed away into crypto and not the business, yet they still held balances. Shit hits fan and they have to make payroll for mostly useless employees "hanging out" at work. Sell the crypto at a loss and pull money from SVB.
During the housing bust lenders would lend to purchase large parcels to developers with NO buyers. For a while they found the buyers. That stopped and there was then 15 months of inventory on basically worthless land and no buyers because FINANCING changed. Wasn't interest rates. This is a different type of bust. Convinced it's crypto. I don't think I'm wrong. I'll admit if I am, but we'll see as this unfolds.
Without SVB or FTX, the Dems are going to need a bigger launderer for donations? Was SVB the conduit for DOD and DARPA funds to SiCoValley for all of the surveillance and propaganda strategies to be directed against the populace?
If I'm being honest I think it's just young gun, moronic Californian's, startup types and even bigger businesses that lost sight of the details that got burned on crypto as I've said. Lost a shitload on crypto and freaked that they "actually" had to run a business and drained their deposits from SVB. This is a basic bank run due to losses elsewhere. Basically venture capital got pissed away into crypto and not the business, yet they still held balances. Shit hits fan and they have to make payroll for mostly useless employees "hanging out" at work. Sell the crypto at a loss and pull money from SVB.
During the housing bust lenders would lend to purchase large parcels to developers with NO buyers. For a while they found the buyers. That stopped and there was then 15 months of inventory on basically worthless land and no buyers because FINANCING changed. Wasn't interest rates. This is a different type of bust. Convinced it's crypto. I don't think I'm wrong. I'll admit if I am, but we'll see as this unfolds.
92
Eman
2023 Mar 12, 12:06pm
Eman
2023 Mar 12, 12:06pm
Booger says
They will likely not according to a buddy of mine who works for the Federal Reserve. Looks like all depositors will be made whole with the assets and equity SVB has on the book.
Shopify and Roku will lose a bunch of money here as well.
Those MBS's that SVB will be liquidated at a heavily discounted rate so expect the balance sheets of those two companies to take a major haircut.
They will likely not according to a buddy of mine who works for the Federal Reserve. Looks like all depositors will be made whole with the assets and equity SVB has on the book.
93
Eman
2023 Mar 12, 12:42pm
Eman
2023 Mar 12, 12:42pm
To protect the innocent, I had to blank out his name. Basically, FDIC will provide a backstop on the losses, IF ANY, to the buyer of SVB.
FDIC money is NOT taxpayers money. High probability all uninsured depositors will be made whole. I’m not an expert on this subject so I would prefer to listen to the people who work in the trenches rather than speculating.
FDIC money is NOT taxpayers money. High probability all uninsured depositors will be made whole. I’m not an expert on this subject so I would prefer to listen to the people who work in the trenches rather than speculating.
95
AD
2023 Mar 12, 1:17pm
AD
2023 Mar 12, 1:17pm
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all of this liquidation of silicon valley bank is inside deal making to their ivy league educated friends
its just a lot more sophisticated form of back slapping good ole boys and legacy families in the florida panhandle
roll tide
.
all of this liquidation of silicon valley bank is inside deal making to their ivy league educated friends
its just a lot more sophisticated form of back slapping good ole boys and legacy families in the florida panhandle
roll tide
.
96
GNL
2023 Mar 12, 1:29pm
GNL
2023 Mar 12, 1:29pm
mell says
Probably the best investing advice for an entire generation.
Don't support woke businesses. Period
Probably the best investing advice for an entire generation.
100
AD
2023 Mar 12, 4:01pm
AD
2023 Mar 12, 4:01pm
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Now the crypto friendly bank, Signature Bank, has been shut down by the government
https://www.coindesk.com/policy/2023/03/12/crypto-friendly-signature-bank-shut-down-by-state-regulators-fed/
,
Now the crypto friendly bank, Signature Bank, has been shut down by the government
https://www.coindesk.com/policy/2023/03/12/crypto-friendly-signature-bank-shut-down-by-state-regulators-fed/
,
101
AD
2023 Mar 12, 4:04pm
AD
2023 Mar 12, 4:04pm
mell says
yep, the guvmint and federal reserve don't want a panic which results in panic or fire sale prices and shark investors coming in and buying pennies on a dollar
go back to washington mutual and see how it got sold off for a ridiculous low price ... just like housing sold for $270,000 and then 2 years later bought for $115,000 ...
no more exploited chaos resulting essentially in freebee's for those investors with cash ...
.
https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html
yep, the guvmint and federal reserve don't want a panic which results in panic or fire sale prices and shark investors coming in and buying pennies on a dollar
go back to washington mutual and see how it got sold off for a ridiculous low price ... just like housing sold for $270,000 and then 2 years later bought for $115,000 ...
no more exploited chaos resulting essentially in freebee's for those investors with cash ...
.
102
Misc
2023 Mar 12, 5:13pm
Sometimes you just gotta print the money.
Someone on another thread asked "Why a country would need a Central Bank"?
Someone on another thread asked "Why a country would need a Central Bank"?
103
Ceffer
2023 Mar 12, 6:28pm
Ceffer
2023 Mar 12, 6:28pm
They'll shore it up because DARPA shit in those SiCo Valley start ups.
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104
RWSGFY
2023 Mar 12, 6:55pm
RWSGFY
2023 Mar 12, 6:55pm
PRAISE ALLAH, HARRY & MEGHAN SAVED FROM FINANCIAL RUIN AND WON'T NEED TO GIVE HAND JOBS FOR CASH!!!!
105
AmericanKulak
2023 Mar 12, 7:12pm
AmericanKulak
2023 Mar 12, 7:12pm
RWSGFY says
They won't be forced to "Abandon their privacy" and do more Netflix Specials on Mental Health and tell crap stories about dumb sibling arguments from their childhood
PRAISE ALLAH, HARRY & MEGHAN SAVED FROM FINANCIAL RUIN AND WON'T NEED TO GIVE HAND JOBS FOR CASH!!!!
They won't be forced to "Abandon their privacy" and do more Netflix Specials on Mental Health and tell crap stories about dumb sibling arguments from their childhood
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Oh yeah, and to once again blow away the bullshit about everyone being insured, read the article about how some depositors will have to pray dividend sales will someday return their deposits to them.
For some fun search bank run and see what some of the top images are.
https://www.zerohedge.com/markets/300-billion-reasons-why-svb-contagion-spreading-broader-banking-system