Silicon Valley Bank shut down by regulators

[Dashinka 24,088]

I hope no one here was impacted.

 

Silicon Valley Bank shut down by regulators

https://www.foxbusiness.com/markets/silicon-valley-bank-shut-down-regulators-fdic

 

[Mike E 11,732]

SVB was a commercial bank. Big loans and big deposits   The venture capitalists who parked money there will take a bath unless Biden and Congress do a 2008 style bail out.

 

Other valley banks got pounded in the stock market, presumably due to fears of more bank runs.

 

https://www.cnbc.com/amp/2023/03/10/first-republic-leads-regional-bank-rout-as-silicon-valley-bank-crisis-raises-fears-about-bond-losses.html
 

“

SVB came under pressure after announcing Wednesday it had lost $1.8 billion on an asset sale and was looking to raise more capital. CNBC's David Faber reported Friday that the fundraising effort had failed and that SVB was exploring a potential sale. But Faber also reported the sale process was becoming difficult because of the rapid outflow of deposits from the bank.

At midday Friday, regulators said they were shutting down the bank and the Federal Deposit Insurance Corp. would take over insured deposits. ”

I’m going to presume most people here are not depositors in commercial banks. 
 

The fear of course is that the malaise spreads and mainstream banks get runs.

 

 

 

[yuna628 9,646]

Hearing that this bank was holding money for a big payroll company so now people at big firms (saw it was some tech and biohealth tech) aren't going to get a paycheck.

Edited March 10, 2023 by yuna628

[Dashinka 24,088]

Anymore coming?

 

https://www.thestreet.com/technology/two-us-banks-collapse-in-48-hours-which-one-is-next

[Dashinka 24,088]

2 hours ago, yuna628 said:

Hearing that this bank was holding money for a big payroll company so now people at big firms (saw it was some tech and biohealth tech) aren't going to get a paycheck.

Not to worry, the heads of the bank got theirs.

 

https://www.dailymail.co.uk/news/article-11846085/CEO-Silicon-Valley-Bank-sold-3-57-million-stock-dramatic-collapse.html
 

CEO of Silicon Valley Bank sold $3.57 million of stock in the troubled bank just TWO WEEKS before its dramatic collapse in automated trade planned on January 26 - and CFO ditched $575,000 the same day

[Neonred 3,514]

8 hours ago, Dashinka said:

Anymore coming?

 

Here you go.

 

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

 

https://www.marketwatch.com/story/20-banks-that-are-sitting-on-huge-potential-securities-lossesas-was-svb-c4bbcafa

 

[Mike E 11,732]

10 hours ago, yuna628 said:

Hearing that this bank was holding money for a big payroll company so now people at big firms (saw it was some tech and biohealth tech) aren't going to get a paycheck.

I’ve seen one report on Reddit r/personalfinance of this happening. I don’t think it was just big firms. It seems silicon valley startups routinely used SVB.

 

My wife is an Etsy seller and she says some sellers didn’t get their periodic payouts because Etsy puts pending payouts in an SVB bank account   
 

My wife wasn’t affected; her last sale was over a week ago abd she was paid. I suppose she will pause her listings. If enough sellers do this, Etsy will be in trouble: it’s effectively the same as a run on bank.

 

If Biden doesn’t have a plan in place by Sunday night, I think the stock markets will be Armageddon on Monday. 
 

 

 

[Mike E 11,732]

19 minutes ago, Neonred said:

Here you go.

 

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

 

https://www.marketwatch.com/story/20-banks-that-are-sitting-on-huge-potential-securities-lossesas-was-svb-c4bbcafa

 

Fta:

 

“The combination of a balance sheet heavy with securities and relatively light on loans, in a rising-rate environment in which bond prices have declined and in which depositors specific to that industry are themselves suffering from a decline in cash, led to a liquidity problem.”

 

OMG why why would a bank be permitted to invest in stocks? 

[TBoneTX 44,613]

10 minutes ago, Mike E said:

If Biden doesn’t have a plan in place by Sunday night

Since when does he work on weekends?  He's surely in Delaware, being pumped full of anti-Bidementia drugs.

11 minutes ago, Mike E said:

the stock markets will be Armageddon on Monday. 

Agree.

[Dashinka 24,088]

2 hours ago, Mike E said:

Fta:

 

“The combination of a balance sheet heavy with securities and relatively light on loans, in a rising-rate environment in which bond prices have declined and in which depositors specific to that industry are themselves suffering from a decline in cash, led to a liquidity problem.”

 

OMG why why would a bank be permitted to invest in stocks? 

They probably watch Jim Cramer.

 

https://www.foxnews.com/media/cnbcs-jim-cramer-eviscerated-touting-silicon-valley-bank-weeks-disastrous-collapse

 

CNBC's Jim Cramer eviscerated for touting Silicon Valley Bank weeks before disastrous collapse

 

 

[Dashinka 24,088]

Hitting the wine industry as well.

 

California wine industry faces financial crisis - with majority of vineyards locked out of their accounts amid SVB collapse

 

https://www.dailymail.co.uk/news/article-11847169/California-wine-industry-faces-financial-crisis-majority-vineyards-locked-accounts.html

[Nature Boy 2.0 8,361]

19 hours ago, Dashinka said:

Not to worry, the heads of the bank got theirs.

 

https://www.dailymail.co.uk/news/article-11846085/CEO-Silicon-Valley-Bank-sold-3-57-million-stock-dramatic-collapse.html
 

CEO of Silicon Valley Bank sold $3.57 million of stock in the troubled bank just TWO WEEKS before its dramatic collapse in automated trade planned on January 26 - and CFO ditched $575,000 the same day

They damaged the lives of 100s of everyday people and should be in jail. 

[Nature Boy 2.0 8,361]

11 hours ago, TBoneTX said:

Since when does he work on weekends?  He's surely in Delaware, being pumped full of anti-Bidementia drugs.

Agree.

Interesting off topic comment. I had a customer yesterday that is in the scrap business. We were discussing catalytic converter theft. He mentioned they contained a substance called

Rhodium.  I got a chuckle thinking of my Rhodium status, wich btw I am thinking of renewing despite not participating as much as I use to. BTW I been paving the way with upvotes.

[TBoneTX 44,613]

3 hours ago, Nature Boy 2.0 said:

my Rhodium status, wich btw I am thinking of renewing

Not your choice.   

3 hours ago, Nature Boy 2.0 said:

I been paving the way with upvotes

Invisible, or so anemic as to be ineffectual.   

[TBoneTX 44,613]

3 hours ago, Nature Boy 2.0 said:

They damaged the lives of 100s of everyday people and should be in jail. 

To the contrary, I expect that the bank will be bailed out.  Gov. Hair Gel or Bidementia's controllers will find the way.