Silicon Valley Bank

[Hardcore troubadour 12,618]

Mooney is gettin upset. 

[Dizkneelande 839]

12 hours ago, dogcows said:

 

Startup culture is a scourge on society. A bunch of rich old white men decide to invest millions in new companies, mostly friends of theirs, or friends of friends. They are supposedly geniuses... But too stupid to pick a decent bank. FTX first, now this. I prefer businesses that start by making good products or services and growing naturally when they get more customers. Y combinator, angel funds, etc. are just the kingmakers picking who will get rich next.. or lose millions next in most cases.

As for the “woke” stuff? Right wingers just call everything woke now. The word no longer has any meaning.

You forgot to add they all vote for Democrats 

[RLLD 3,455]

 

Holy crap, where has this version of Biden been all this time?  Not b ad, not bad at all....

Now, show me the same level of competence toward the border and we can be friends....

 

[The Real timschochet 2,921]

This is bad and it’s going to get worse. 

[Bert 1,087]

3 hours ago, GutterBoy said:

Only the depositors will be made whole due to FDIC insurance and a special assessment on banks.

Really?  I have not seen where FDIC is going to cover deposits over $250,000.

[GutterBoy 2,277]

6 minutes ago, The Real timschochet said:

This is bad and it’s going to get worse. 

Much like your posting.

[Cdub100 3,379]

Just now, Bert said:

Really?  I have not seen where FDIC is going to cover deposits over $250,000.

https://www.forbes.com/sites/marisadellatto/2023/03/12/fdic-will-protect-all-silicon-valley-bank-deposits-after-sudden-collapse-treasury-says/?sh=7c58b1216c2f

Account holders will be able to access all of their deposits on Monday, the Treasury, Federal Reserve and Federal Deposit Insurance Corporation said in a joint statement.

The FDIC usually only insures $250,000 per account, but it can use its funds to protect uninsured deposits if the Treasury Secretary and two-thirds of the FDIC and Federal Reserve boards determine there is a “systemic risk” to the financial system—a strategy that federal officials appeared to pursue Sunday evening.

Taxpayers will not foot the bill for the rescue plan: The banks that fund the deposit insurance system will pay for any losses incurred from protecting Silicon Valley Bank’s uninsured depositors, with the FDIC charging them a “special assessment,” according to the Treasury.

[GutterBoy 2,277]

3 minutes ago, Bert said:

Really?  I have not seen where FDIC is going to cover deposits over $250,000.

https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm

Quote

After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

 

[Hardcore troubadour 12,618]

So the execs that wrecked the place are going to lose their jobs? You don’t say. Saying that as if it means something is funny. 

[Bert 1,087]

2 minutes ago, GutterBoy said:

https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm

 

Thanks.  Well that sux.  

[GutterBoy 2,277]

Just now, Bert said:

Well that sux.  

Why does it suck?

[The Real timschochet 2,921]

10 minutes ago, GutterBoy said:

Much like your posting.

Lol can’t argue with that 

[Bert 1,087]

5 minutes ago, GutterBoy said:

Why does it suck?

People like Mark Cuban do not need to be bailed out.  The people with large deposit balances are almost all high wealth individual that should have known better than to have that much cash in one place.

[Horseman 1,513]

9 minutes ago, Bert said:

People like Mark Cuban do not need to be bailed out.  The people with large deposit balances are almost all high wealth individual that should have known better than to have that much cash in one place.

He probably does, it's just how many 250K accounts does a guy have to set up though.  That's not enough for one Shark Tank investment.  

But yeah, Gutterboy doesn't understand that we're mostly bailing out the uber rich at the expense of the rest of us again.  When a natural tax the rich event happens and they bail them out you start to figure out that they aren't really interested in taxing the rich. 

[Hardcore troubadour 12,618]

Don’t call it a bailout. Even Though it is. It might even be the best thing to do, but let’s not kid ourselves. As if we’re all supposed to be ok with how these things always play out. The profits aren’t shared, but the losses are. 

[The Real timschochet 2,921]

My understanding is that the bailout money comes from other banks and not the taxpayer. Is that correct? 

[GutterBoy 2,277]

7 minutes ago, The Real timschochet said:

My understanding is that the bailout money comes from other banks and not the taxpayer. Is that correct? 

Yes that's correct.  Don't listen to these idiots.

[Horseman 1,513]

2 minutes ago, The Real timschochet said:

My understanding is that the bailout money comes from other banks and not the taxpayer. Is that correct? 

Banks buy into the FDIC insurance program.  Guess where they get the money to do that.

[Baker Boy 1,484]

28 minutes ago, Hardcore troubadour said:

Don’t call it a bailout. Even Though it is. It might even be the best thing to do, but let’s not kid ourselves. As if we’re all supposed to be ok with how these things always play out. The profits aren’t shared, but the losses are. 

85% of deposits at SVB are uninsured!

[Tree of Knowledge 829]

57 minutes ago, Hardcore troubadour said:

So the execs that wrecked the place are going to lose their jobs? You don’t say. Saying that as if it means something is funny. 

Hopefully they are subject to personal lawsuits.  

[lickin_starfish 1,479]

They'll just whip up a few billion and we'll pay through the ass via inflation.

[Engorgeous George 1,160]

1 hour ago, Cdub100 said:

https://www.forbes.com/sites/marisadellatto/2023/03/12/fdic-will-protect-all-silicon-valley-bank-deposits-after-sudden-collapse-treasury-says/?sh=7c58b1216c2f

Account holders will be able to access all of their deposits on Monday, the Treasury, Federal Reserve and Federal Deposit Insurance Corporation said in a joint statement.

The FDIC usually only insures $250,000 per account, but it can use its funds to protect uninsured deposits if the Treasury Secretary and two-thirds of the FDIC and Federal Reserve boards determine there is a “systemic risk” to the financial system—a strategy that federal officials appeared to pursue Sunday evening.

Taxpayers will not foot the bill for the rescue plan: The banks that fund the deposit insurance system will pay for any losses incurred from protecting Silicon Valley Bank’s uninsured depositors, with the FDIC charging them a “special assessment,” according to the Treasury.

Well i am sure the cost of that assessment will not get passed on to use consumers/taxpayers in any way. so we have that going for us, which is nice!

[Mike Honcho 4,014]

On 3/11/2023 at 11:58 PM, TimHauck said:

It’s Biden’s fault a bank apparently didn’t know how to manage its portfolio?

First chance to open this thread and as I did my first fault was how long before someone blamed current administration.  This place never disappoints. 

[RLLD 3,455]

5 minutes ago, Mike Honcho said:

First chance to open this thread and as I did my first fault was how long before someone blamed current administration.  This place never disappoints. 

The bank owns this one.  The question in my mind was why would they not liquid earlier. That is pretty strange.  The only thing that makes sense is that maybe they were buying into the administrations lies about inflation.  Because these jokers should have known better.....and moved much earlier...

[GutterBoy 2,277]

6 minutes ago, Mike Honcho said:

First chance to open this thread and as I did my first fault was how long before someone blamed current administration.  This place never disappoints. 

They gotta go through the bingo card.  We got Biden being blamed, Diversity being blamed, Woke culture being blamed...

I'm surprised we didn't see anything about drag queens being at fault here.

[Hardcore troubadour 12,618]

6 minutes ago, GutterBoy said:

They gotta go through the bingo card.  We got Biden being blamed, Diversity being blamed, Woke culture being blamed...

I'm surprised we didn't see anything about drag queens being at fault here.

It’s the concentrating significant efforts on the woke bullshit being blamed, not the woke bullshit. No one is blaming lgbtq, or diversity. It’s a bank, not a campus, simple Sam.  

[The Real timschochet 2,921]

1 minute ago, Hardcore troubadour said:

It’s the concentrating significant efforts on the woke bullshit being blamed

This really seems unlikely. “We should have paid more time studying our investments, but we were too busy trying to achieve diversity!” I mean really? 

[jerryskids 5,188]

4 minutes ago, RLLD said:

The bank owns this one.  The question in my mind was why would they not liquid earlier. That is pretty strange.  The only thing that makes sense is that maybe they were buying into the administrations lies about inflation.  Because these jokers should have known better.....and moved much earlier...

This strikes me as very similar to an investment we had that went belly up -- without going into those details, my sense for SVB is that they were making above market on their treasury strategy during low interest times, then it started to go south, and instead of cutting losses they just kept doubling down (or at minimum, doing nothing).  I'm no finance expert but the exposure they had wasn't rocket surgery. 

[RLLD 3,455]

1 minute ago, jerryskids said:

This strikes me as very similar to an investment we had that went belly up -- without going into those details, my sense for SVB is that they were making above market on their treasury strategy during low interest times, then it started to go south, and instead of cutting losses they just kept doubling down (or at minimum, doing nothing).  I'm no finance expert but the exposure they had wasn't rocket surgery. 

Agree completely.  They simply must have seen this.  Their actions run counter to how you should respond.  Its really strange. 

[GutterBoy 2,277]

3 minutes ago, jerryskids said:

This strikes me as very similar to an investment we had that went belly up -- without going into those details, my sense for SVB is that they were making above market on their treasury strategy during low interest times, then it started to go south, and instead of cutting losses they just kept doubling down (or at minimum, doing nothing).  I'm no finance expert but the exposure they had wasn't rocket surgery. 

They didn't lose anything by investing in the Treasuries, except liquidity, and that is what did them in.

[GutterBoy 2,277]

6 minutes ago, The Real timschochet said:

This really seems unlikely. “We should have paid more time studying our investments, but we were too busy trying to achieve diversity!” I mean really? 

And they actually believe this.  It's amazing.

[Hardcore troubadour 12,618]

45 minutes ago, The Real timschochet said:

This really seems unlikely. “We should have paid more time studying our investments, but we were too busy trying to achieve diversity!” I mean really? 

It’s obvious they were better at diversity than they were at banking.  

[GutterBoy 2,277]

6 minutes ago, Hardcore troubadour said:

It’s obvious they were better at diversity than they were at banking.  

https://www.svb.com/leadership

100% White

75% White Male

[Hardcore troubadour 12,618]

10 minutes ago, GutterBoy said:

https://www.svb.com/leadership

100% White

75% White Male

White males can be more concerned with nonsense too. Mirror handy? 

[nobody 2,037]

4 hours ago, RLLD said:

 

Holy crap, where has this version of Biden been all this time?  Not b ad, not bad at all....

Now, show me the same level of competence toward the border and we can be friends....

 

The only part that worries me is when he said, "No losses will be born by the tax payers.  Let me repeat that.  No losses will be born by the tax payers."

I didn't think losses would be born by the tax payers before listening to him, but now I have to assume we're going to be on the hook for some kind of bailout (called by some other name, of course).

[nobody 2,037]

19 minutes ago, GutterBoy said:

https://www.svb.com/leadership

100% White

75% White Male

That's how diversity works.  It only happens at the levels below the wokies.  They obviously aren't going to replace themselves with a diversity hire.

[jerryskids 5,188]

1 hour ago, GutterBoy said:

They didn't lose anything by investing in the Treasuries, except liquidity, and that is what did them in.

I'm not sure what you are saying; they did lose money, although it may technically have been unrealized losses (which would be consistent with my statement about not getting out before it got too bad.  I'm presuming here that one could sell such long-term bonds on the open market, albeit at a loss).  Also, as you said, they had too much of their money in such investments which made them less liquid, but also to my point of trying to provide higher-than-market return to investors.

Quote

What happened to SVB and Signature Bank?

Several factors led to the precipitous collapse of SVB. Most of SVB's clients include tech and venture capital companies, in addition to executives for these firms. In an effort to attract clients, SVB offered relatively higher rates on deposits compared with many larger rivals. To help fund these higher rates, SVB bought longer-term, higher-yielding bonds when it was cash rich. But that was before the Fed began aggressively hiking rates and the venture capital market experienced some turbulence. The value of most of those bonds SVB purchased has declined substantially (bond values generally decrease as interest rates increase), resulting in big investment losses.

"This is a classic asset-liability mismatch, triggered by higher rates, and compounded by leverage," according to Jurrien Timmer, director of global macro at Fidelity. "Some banks have offered to pay higher rates to their depositors, but as the Fed has raised rates and bond values decreased, banks like SVB are taking losses on their bond assets."

Complicating the situation, SVB kept a lower level of deposits on hand and invested a greater percentage of its capital in order to try and pay its relatively higher rates. Consequently, SVB has been on looser footing than most other banks.

https://www.fidelity.com/learning-center/personal-finance/silicon-valley-bank-collapse

[jerryskids 5,188]

4 minutes ago, nobody said:

The only part that worries me is when he said, "No losses will be born by the tax payers.  Let me repeat that.  No losses will be born by the tax payers."

I didn't think losses would be born by the tax payers before listening to him, but now I have to assume we're going to be on the hook for some kind of bailout (called by some other name, of course).

I know I'm preaching to the choir, but there is no money tree, despite the belief of many on the Left in "modern monetary theory" or the belief that you can just print money with no ramifications.  In the end, either through taxes or fees or increased FDIC charges to offset the "bailout", we the people always pay in the end.

[TimHauck 1,799]

3 hours ago, Bert said:

People like Mark Cuban do not need to be bailed out.  The people with large deposit balances are almost all high wealth individual that should have known better than to have that much cash in one place.

I thought the reports were that many startups/small businesses used this bank.  So the founders/owners might have “large wealth” but are using a significant portion of it to pay their employees which they wouldn’t have been able to do if their money was not available.

[RLLD 3,455]

49 minutes ago, nobody said:

The only part that worries me is when he said, "No losses will be born by the tax payers.  Let me repeat that.  No losses will be born by the tax payers."

I didn't think losses would be born by the tax payers before listening to him, but now I have to assume we're going to be on the hook for some kind of bailout (called by some other name, of course).

Right, I get you there.  That is one of his "tells".  I think we all know right now that is a bold-faced lie.