SVB Failed! Silicon Valley Bank.

[CB750F]

I don't think their investments are a great deal more risky than the big banks. I do think the Fed made a decision to raise interest rates knowing the end result. They know the weaknesses of all banks. They suspend rules arbitrarily to save/protect the chosen ones. Mark to Market comes to mind. 0% interest rates for the chosen few also comes to mind.

IMO, This is a consolidation operation.

Follow the money. Who gains? Who loses?

Not you or me, that's for sure.
I want to go back to mark to fantasy, unicorns & skittles pls.

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[AzScorpion]

I don't think their investments are a great deal more risky than the big banks.

I do think the Fed made a decision to raise interest rates knowing the end result. They know the weaknesses of all banks. They suspend rules arbitrarily to save/protect the chosen ones. Mark to Market comes to mind. 0% interest rates for the chosen few also comes to mind.

IMO, This is a consolidation operation.

Follow the money. Who gains? Who loses?

From what I red they matched deposits to the 10 year T bills. Sure there is no risk of principal but there is enormous interest rate risk which they should've known was coming. So now the only way to repay depositors was to sell their US Treasury investments at a loss. I never have and still don't trust financial advisors and most banks. It's always easy to gamble with someone else's money knowing you have ZERO risk in the game. They should've know rate hikes were coming and went with short term T bills but they got greedy. Doesn't matter they got bailed out anyways so no lesson learned here.

 

[TJC]

Not you or me, that's for sure.
I want to go back to mark to fantasy, unicorns & skittles pls.

You won't have too wait long...

 

[CB750F]

From Warren Buffett:
“Never invest in a business you cannot understand.”

Banks like Silicon Valley specialized in making loans to tech sector and startups , some of those loans enabled startups to become larger successful companies so understandably they stayed with SVB who was well connected in tech circles and undoubtedly did their fair of schmoozing. And as someone pointed out Forbes or maybe Barrons was giving recent positive ratings to this bank.

https://www.sarwa.co/blog/warren-buffett-quotes#:~:text

These banks passed a test 14 days ago! WTF!!!!

 

[AzScorpion]

Did you hear/read that SVB wanted all the customers business or
nothing? Big red flag for me. Other regional banks seemed to have been run properly(I have no proof). Now will there be new regulations, new fees? If so, again for a big client it won't be much, but for the normal person with 500/5000$ in the bank, it will.
It make me sick.
Oh look, the S&P was up 2% earlier, now only 1%... hmmmm.

I did. It was an "all or nothing" deal with them and you're right, a huge red flag.

 

[TJC]

These banks passed a test 14 days ago! WTF!!!!

And what does that tell you?

 

[AzScorpion]

When I read this I had to look at the calendar to make sure it wasn't April 1st! I'm sure some will stick around but no way would I.

New Silicon Valley Bank CEO Asks Customers to Come Back

https://www.thestreet.com/investing...ers-to-wire-money-back?puc=yahoo&cm_ven=YAHOO

The new chief executive of the new Silicon Valley Bank, Tim Mayopoulos, asked its customers to keep their deposits with the new company, which is called Silicon Valley Bridge Bank NA.

"We are open for business and are hard at work bringing all systems and solutions back online to support you," he wrote in a LinkedIn post.

He said the bank is issuing new loans and honoring existing credit facilities.

Mayopoulos asked customers to either leave their money at the bank or wire their money back.

"The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days," he wrote.

 

[TJC]

I repeat - Follow the money.

 

[AzScorpion]

I repeat - Follow the money.

Plus you have to remember the elections are coming up. Now how bad would this look if this string of banks didn't get bailed out and more continue to fail? Funny because I remember watching this same show and most of the same people were in it the last time.

 

[dtech]

When I read this I had to look at the calendar to make sure it wasn't April 1st! I'm sure some will stick around but no way would I.

New Silicon Valley Bank CEO Asks Customers to Come Back

https://www.thestreet.com/investing...ers-to-wire-money-back?puc=yahoo&cm_ven=YAHOO

No mention if I open account with SVB if I'd get a set of knives, cheese slicer or a toiletry bag ? Maybe offering a damper but that could cause a stampede at the bank.

 

[TJC]

What is really happening... Nationalization of US Banking System

We are now by definition, a fascist state.

 

[TXRangerTim]

What is really happening... Nationalization of US Banking System

We are now by definition, a fascist state.

Now they can push for their own digital currency. That's not good at all. They would be able to control what the peasants purchase and how much.

 

[dtech]

What is really happening... Nationalization of US Banking System

We are now by definition, a fascist state.

Oleary is being sour grapes because the feds bailed out Mark Cuban's investment, can't say I blame him. A lot more banks likely would have collapsed had the fed not acted. Now the fed can raise rates without forcing more banks to fold, all part of a big interconnected mess. The dike though is getting more holes than can be plugged.

Speaking of dikes though - a longtime fav, when the levee breaks , outstanding work by jon bonham on the drums along with Plant on harmonica and of course the incomparable Jimmy Page on guitar, goin down, goin down now..........

 

[TJC]

A 1971 version of a very old song from the late 1920's. Both classics.

 

[TJC]

I am not sure it is sour grapes. Every bank in the country now has the guaranteed financial backing and protection of the US government. They can not fail unless the US government wishes it so.

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