Bank failures have started

[Circe]

MSN

That is so sick.

 

[Circe]

Customers line up outside First Republic Bank to take their money out

On Saturday, dozens of customers were shown lining up outside of a First Republic Bank in southern California, eager to withdraw their funds in the wake of the collapse of SVB this week.

www.dailymail.co.uk

I went in Friday to my bank and took out extra cash --------- I was the only customer there, however!!

The interesting thing will be whether there are lines at vulnerable banks (or worse: lots of banks) tomorrow morning. Let's watch for that. If so, the Fed will have to move FAST.

Powell did sort of imply that to fight inflation you have to raise interest rates till something breaks ------- well, something broke.

 

[turbofish]

Ever heard of the canary in a coal mine?

And the reason for the failure is scary as well. The bank had 60% of their assets in government bonds, something that is usually considered to be safe assets. Those assets were wipe out due to inflation. More banks will likely follow

 

[amethyst]

I went in Friday to my bank and took out extra cash --------- I was the only customer there, however!!

The interesting thing will be whether there are lines at vulnerable banks (or worse: lots of banks) tomorrow morning. Let's watch for that. If so, the Fed will have to move FAST.

Powell did sort of imply that to fight inflation you have to raise interest rates till something breaks ------- well, something broke.

We r pulling 30 k from an ira to assure our remodeling gets done as we r setting ourselves up for retirement life. I have been prepping for a while as well.

I have heard that some banks are limiting withdrawals to $2,000. Once the runs start, it will spread like wildfire.

 

[amethyst]

The article separates the banks into 2 batches.

20 banks that are sitting on huge potential securities losses—as was SVB

SVB Financial faced a perfect storm, but there are plenty of other banks that would face big losses if they were forced to dump securities to raise cash.

www.marketwatch.com

 

[Ringo]

 

[Missourian]

SVB Fallout Spreads Around World From London to Singapore

(Bloomberg) -- The fallout from the collapse of Silicon Valley Bank is beginning to spread around the world. Most Read from BloombergUS Discusses Fund to Backstop Deposits If More Banks FailSVB Fallout Spreads Around World From London to SingaporeStartup Bank Had a Startup Bank RunFDIC Races to...

news.yahoo.com

Silicon Valley Bank fallout starts to spread around the world

SVB had branches in Canada, the UK, China, Denmark, Germany, India, Israel and Sweden, and the scenes coming out of California are just the beginning.

www.jpost.com

 

[Ringo]

Let him lead the third bank, because as they say, a shell doesn't hit the same crater twice, much less three times in a row.

 

[Circe]

We r pulling 30 k from an ira to assure our remodeling gets done as we r setting ourselves up for retirement life. I have been prepping for a while as well.

I have heard that some banks are limiting withdrawals to $2,000. Once the runs start, it will spread like wildfire.

I hadn't heard that!! If there is any truth to their limiting withdrawals, like tomorrow when banks open, yeah, trouble coming.

 

[Circe]

Silicon Valley Bank fallout starts to spread around the world

SVB had branches in Canada, the UK, China, Denmark, Germany, India, Israel and Sweden, and the scenes coming out of California are just the beginning.

www.jpost.com

"SVB’s Collapse Was Rooted in Treasury Bets During Pandemic" was a link in the top one of your articles. Ya think? Maybe all that helicopter money floating in to excuse their shutting down the entire U.S. economy might have been pumping? We didn't know what to DO with that cash coming in: apparently a lot of people didn't. So presto, inflation. Presto II, inflation fighting, and then bank collapses. I blame the stupid helicopter money during the pandemic.

 

[Circe]

Let him lead the third bank, because as they say, a shell doesn't hit the same crater twice, much less three times in a row.
View attachment 765021

Great catch! This poor guy, he can't win for losing!

 

[mak2]

"SVB’s Collapse Was Rooted in Treasury Bets During Pandemic" was a link in the top one of your articles. Ya think? Maybe all that helicopter money floating in to excuse their shutting down the entire U.S. economy might have been pumping? We didn't know what to DO with that cash coming in: apparently a lot of people didn't. So presto, inflation. Presto II, inflation fighting, and then bank collapses. I blame the stupid helicopter money during the pandemic.

I don't pretend to be an economist, but I believe it had something to do with the bank having high risk bonds, and interest rates going up. Poor buisness practices maybe?

 

[Synthaholic]

Still suffering TDS?

Don't you miss the good ole days when it was Bush.

The fact that Trump is responsible for 25% of all the debt accumulated under every single president is a FACT.

You can whine about people pointing it out, but that's all you're doing.

 

[Synthaholic]

 

[Circe]

I don't pretend to be an economist, but I believe it had something to do with the bank having high risk bonds, and interest rates going up. Poor buisness practices maybe?

No, the Wall Street Journal analysis said the opposite: none of those dubious lower-class housing scams like in the 2008 disaster were involved. Indeed, SVB had the most conservative imaginable investments made with all their billions --- 1) Treasury Bonds, and 2) regular house mortgages. What I'm reading happened is that the unrealized value of BOTH those sank drastically because of the higher interest rates Powell is causing and at the same time people wanted a lot of withdrawals on Wednesday ----- $42 billion.

Which is a LOT. So: who wanted that $42 billion and why? I just read a breaking news thing that it was the Peter Thiel group that did a "capital call" to acquire capital from several other banks into SVB for a specific investment as these venture capital people do ---------------- and for some mysterious reason they are NOT being open about, the transfers didn't go through!! There were delays, there were problems, not specified. At which moment, on Wednesday, Thiel stepped in and removed every last penny belonging to his firm from SVB --------- and after that, the bank collapse was rapid. VERY interesting. No fool, Thiel. Whatever happened about those transfers, he quickly figured out there was a systemic problem and he moved fast.

 

[Missourian]

Yellen Rules Out Bailout For Silicon Valley Bank

Yellen called the American banking system “resilient” amid concerns of widespread fallout from Silicon Valley Bank’s crash.

www.forbes.com

 

[turbofish]

People here keep on saying that this is a rich person/tech world issue. Just found out how personal it can get.
My Kids [adults with kids of their own] are over for lunch where my oldest had issues getting paid at his HVAC job. Seems that the company he works for uses a payroll service that just so happened to use this bank. The owner of this local Arkansas company at least had some personal funds that he used to be able to pay his employees but there isn't a way that he can continue to that. All of the funds are out of reach until the FDIC can get around to releasing the funds. Not sure if they had more than the FDIC covers but the HVAC world is an expensive business since they have to have a variety of HVAC equipment to be able take care of their customers.
Again, not just a rich people/tech world issue and it effects people across the US, even in a small NW Ark world.

 

[Synthaholic]

I said earlier in this thread that I bet Peter Thiel is responsible for this, or even concocted this scheme to tank this bank.

All of a sudden I'm seeing a bunch of people saying on Twitter "maybe Peter Theil should be investigated for this". Ya think?

 

[Synthaholic]

I said earlier in this thread that I bet Peter Thiel is responsible for this, or even concocted this scheme to tank this bank.

All of a sudden I'm seeing a bunch of people saying on Twitter "maybe Peter Theil should be investigated for this". Ya think?

 

[Circe]

Yellen Rules Out Bailout For Silicon Valley Bank

Yellen called the American banking system “resilient” amid concerns of widespread fallout from Silicon Valley Bank’s crash.

www.forbes.com

Fifteen minutes ago this was posted at the WSJ:

Regulators are auctioning failed Silicon Valley Bank, according to people familiar with the matter.

The Federal Deposit Insurance Corp. seized Silicon Valley Bank on Friday after a run on deposits doomed its efforts to raise fresh capital and shore up its finances. Regulators are trying to find buyers for the bank in an effort to repay depositors.
******************************************************************************************

If they CAN sell this bank, say to Chase or JP Morgan? they won't have to bail out the depositors, which would certainly be better than another "too big to fail" performance.

Here's a link to the report that the Peter Thiel firm suddenly withdrew all its money on Wednesday, which presumably preciptated the collapse.

Peter Thiel's Founders Fund got its cash out of Silicon Valley Bank before it was shut down, report says