Keith
Super Anarchist
Silicon Valley Bank: Global bank stocks slump despite Biden reassurances
US authorities have stepped in to protect customers after the collapse of two American banks.
www.bbc.com
Silicon Valley Bank - tits up
- Thread starter P_Wop
- Start date
Foreverslow
Super Anarchist
signature bank just closed...
according to the article below, SVB did it by the book. Just just did not see rates ever going up and when they did rise, they were dead meat.
www.zerohedge.com
the concern is ALL banks who have been trying to do it by the book wtih no plan B for higher rates are also at risk. The Fed was slow to react (remember temporary inflation??) and now they are cranking the rates to stop runaway inflation while not understanding the havoc this will cause.
This discussion is about the impact of higher rates on banks.
Just wait until the discussion starts on zombie corporations who have been borrowing tons of cheap money for past 10 years to pay dividends instead of using cash flow when they cannot borrow any more money or at rates much higher. These corporations will fail when thy need to refinance, or they will be laying off every employee to make the loan payments. Ditto companies bought by VCs who mortgaged the farm to get their money out up front. 2001 all over again.
Financial Engineering is NOT engineering. Just some mumbo jumbo to cover their schemes. seems like every company who did it gets crushed in the end.
according to the article below, SVB did it by the book. Just just did not see rates ever going up and when they did rise, they were dead meat.
Silicon Valley Bank Followed Exactly What Regulation Recommended | ZeroHedge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com
the concern is ALL banks who have been trying to do it by the book wtih no plan B for higher rates are also at risk. The Fed was slow to react (remember temporary inflation??) and now they are cranking the rates to stop runaway inflation while not understanding the havoc this will cause.
This discussion is about the impact of higher rates on banks.
Just wait until the discussion starts on zombie corporations who have been borrowing tons of cheap money for past 10 years to pay dividends instead of using cash flow when they cannot borrow any more money or at rates much higher. These corporations will fail when thy need to refinance, or they will be laying off every employee to make the loan payments. Ditto companies bought by VCs who mortgaged the farm to get their money out up front. 2001 all over again.
Financial Engineering is NOT engineering. Just some mumbo jumbo to cover their schemes. seems like every company who did it gets crushed in the end.
Olsonist
Disgusting Liberal Elitist
signature bank just closed...
according to the article below, SVB did it by the book. Just just did not see rates ever going up and when they did rise, they were dead meat.
Silicon Valley Bank Followed Exactly What Regulation Recommended | ZeroHedge
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
the concern is ALL banks who have been trying to do it by the book wtih no plan B for higher rates are also at risk. The Fed was slow to react (remember temporary inflation??) and now they are cranking the rates to stop runaway inflation while not understanding the havoc this will cause.
This discussion is about the impact of higher rates on banks.
Just wait until the discussion starts on zombie corporations who have been borrowing tons of cheap money for past 10 years to pay dividends instead of using cash flow when they cannot borrow any more money or at rates much higher. These corporations will fail when thy need to refinance, or they will be laying off every employee to make the loan payments. Ditto companies bought by VCs who mortgaged the farm to get their money out up front. 2001 all over again.
Financial Engineering is NOT engineering. Just some mumbo jumbo to cover their schemes. seems like every company who did it gets crushed in the end.
ZeroHedge.
yup. Special treatment. Both banks. I’m not sure how I feel about special bailouts for excess money.Silicon Valley Bank: Global bank stocks slump despite Biden reassurances
US authorities have stepped in to protect customers after the collapse of two American banks.www.bbc.com
veni vidi vici
Omne quod audimus est opinio, non res. Omnia videm
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Hilarious headline
finance.yahoo.com
U.S. government guarantees all Silicon Valley Bank deposits, money available Monday
Silicon Valley Bank depositors will be made whole and have access to their money starting Monday morning, according to a statement from the Treasury, Fed, and FDIC on Sunday.
Foreverslow
Super Anarchist
Mighty simplistic statement.
Should I be listening to Jim Cramer and CNBC/Fox Financial flunkies with their list of Wall street whores pumping and dumping ?
You know, the ones who again will have Granny Janet on TV tomorrow saying all is well.
I track zero hedge along with over a dozen other sites and I have been doing it for over 10 years. One can bullshit on any given issue, but over time, bs is going to stick to you. Just ask the fools at CNN.
Zero hedge pushes gold and silver. I know that and filter accordingly.
But they very good at getting alternative views certain narratives that the MMM likes to pump if they let the information out in the first place. Go back and check their coverage in 07 and 08. They were sounding the warning long before most even knew who Lehman Brothers were.
Many like to dismiss the messenger instead of the content of the article.
So I have to ask.
What do you disagree in that article?
Be like Dorothy. If Toto pulls the curtain back, as least take a look instead of screaming Bad Doggie..
sumpin
Super Anarchist
hoops...and now Signature in NY, gonzo. Tomorrow will be a ride
Olsonist
Disgusting Liberal Elitist
No. If they have a valid point then you should have zero problem finding that point made by a more credible source. And I did read the article and had problems with it.
Hilarious headline
U.S. government guarantees all Silicon Valley Bank deposits, money available Monday
Silicon Valley Bank depositors will be made whole and have access to their money starting Monday morning, according to a statement from the Treasury, Fed, and FDIC on Sunday.
Yup - bad paper for good money. That's the easiest 'no one gets blamed' resolution for now and buys time.
Tax payers aren't covering it seems like a disingenuous claim but that does depend on the terms of the 'loans' and how they relate to collateral. Its not IMPOSSIBLE that its true - but it seems pretty unlikely to be the case.
Still waiting to see if there's a new ownership at the bank itself. As @OPAL / @Lark 's link said, the Brits appear to be taking over the UK piece.
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@OPAL gets credit for that scoop,
One of Trump’s banks. Good luck moving that account.
sumpin
Super Anarchist
don't know about that but his real estate is not. nobody would deal with that family going back to Fred. real estate was/is all CMBS through DB. he has been despised locally for decades by banks.
Having 5 bankruptcies and the personality of a honey badger will do that for you.
Olsonist
Disgusting Liberal Elitist
Wall Street pays which is fine by me.
www.cnbc.com
This will all come out in the wash.
nongaap.substack.com
Wall Street — not taxpayers — will pay for the SVB and Signature deposit relief plans
The funds to reimburse depositors will be paid out of the Deposit Insurance Fund, which is made up of quarterly fees assessed on financial institutions.
This will all come out in the wash.
SIVB: Held-to-Mortem Governance
When did Silicon Valley Bank insiders begin to realize they were potentially in trouble?
nongaap.substack.com
Ease the sheet.
ignoring stupid people is easy
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Cracks in the system: Why the collapse of Silicon Valley Bank matters
Unlike the debacle surrounding the collapse of Sam Bankman-Fried's crypto kingdom FTX late last year, the sudden demise of Silicon Valley Bank last weekend has its origins at the other end of the financial spectrum.
www.abc.net.au
Peter Andersen
Super Anarchist
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With this POTUS? How dare you!?
Peter Andersen
Super Anarchist
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apparently they were big in Crypto
Fat Point Jack
Super Anarchist
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This takes me back to Management 487, Business Policy at The Florida Atlantic University. The prof announced the first day of class, "This class is all about Money, Greed and Avarice.
What you teach is what you get.
What you teach is what you get.
MagentaLine
Super Antichrist
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Barney Frank Sat on Board for Collapsed Signature Bank
Barney Frank Sat on Board for Collapsed Signature Bank
Former Rep. Barney Frank (D-MA), author of the 2010 Dodd-Frank bill, sat on the board for Signature Bank, which has collapsed.
www.breitbart.com
“Dodd-Frank imposed additional regulatory safeguards on banks with more than $50 billion in assets, but the rollback that passed this week, among other things, raises that threshold to $250 billion,” the Washington Post reported in 2018.
“Signature Bank has more than $40 billion in assets and can now grow significantly without automatically facing additional regulation. Frank has served on Signature’s board for three years and has received more than $1 million in payments from the bank during that time,” the report added.
Foreverslow
Super Anarchist
Barney is just as dirty.
He led the fight to stop red lighting in inner cities.
Basically twisted banker arms to give inner cities folks mortgages.
Well except they could not afford them because they were low income inner city residents.
That rocket scientist (not!) W went to Congress not once, or twice but 3 times to warn this was a bad idea, but old Barney called him evil and rich.
well when the smoke cleared in 2008, almost all those inner cities folks who had taken out loans on their triple decker row houses lost it all. In some cases torching several generations of savings in 1 shot. And only after running up the average selling price to the moon.
Go talk to the poor SOBs in his district of New Bedford and Taunton or further out in Roxbury, Worcester, Springfield
Putting Barney Frank on any bank board is akin to having Jack Kevorkian run your local hospice... But I am sure Barney is making calls on the banks behalf today.
Greedy shitheads can easily be found on either side.
In other news, First Republic down 60% this morning.
Pro Tip: If you do not already have cash in the house, you may want to put a grand or two of yuppie food stamps (aka $20) under your pillow today. No telling when the ATMs lock up for a bank holiday or 3..
