Silicon Valley Bank

[Recaster]

A good Substack article which goes into some depth on this company especially the problems with HTM vs. AFS designations on investments:

https://www.netinterest.co/p/the-demise-of-silicon-valley-bank?utm_medium=email

[Valuegrowth]

https://tech.eu/2023/03/10/after-a-60-stock-price-drop-silicon-valley-bank-trading-suspended/

[Recaster]

First Republic Bank the next domino to fall?

https://www.dailymail.co.uk/news/article-11849049/Customers-line-outside-Republic-Bank-money-SVB-bank-collapsed.html

[winner69]

First Republic Bank the next domino to fall?

https://www.dailymail.co.uk/news/article-11849049/Customers-line-outside-Republic-Bank-money-SVB-bank-collapsed.html

When you line up like that do you get cash to take away?

Suppose not allowed to do internet banking when this happens?

[fungus pudding]

When you line up like that do you get cash to take away?

Suppose not allowed to do internet banking when this happens?

You could try .:D:t_up::p

[moka]

Joseph Wang - Looks like SVB held $120b in securities but basically didn't hedge their interest rate exposure.
That's totally crazy. No wonder they failed.

https://twitter.com/FedGuy12/status/1634360773555388416?s=20

SVB was just a badly run bank that went bust. Happens all the time. What's special about SVB is that many influential people banked with them, and are now lobbying for special treatment. Let's hope our system is fair.

https://twitter.com/FedGuy12/status/1634569006752624640?cxt=HHwWgMDThb72k68tAAAA

[moka]

Big change in policy guaranteeing ALL deposits, not just $250,000.

US guarantees ALL deposits after Silicon Valley Bank collapse, as Biden promises action.
On Friday, SVB was placed under the control of the FDIC, which guarantees deposits up to $250,000.

https://www.theguardian.com/business/2023/mar/12/silicon-valley-bank-collapse-no-bailout-janet-yellen
(https://www.theguardian.com/business/2023/mar/12/silicon-valley-bank-collapse-no-bailout-janet-yellen)
US financial regulators rolled out emergency measures Sunday night to stem potential contagion from the collapse of Silicon Valley Bank. The measures include ensuring that depositors with the failed bank would have access to all their money on Monday morning.

Regulators announced the measure in a joint statement from the treasury secretary, Janet Yellen, the Federal Reserve chair, Jerome Powell, and the Federal Deposit Insurance Corporation (FDIC) chair, Martin Gruenberg.
“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,” they said in a statement.

The failure of SVB “could be the first cockroach in the cellar”, the investment manager Fredric Russell told the Wall Street Journal. (https://www.wsj.com/articles/wall-street-braces-for-the-next-silicon-valley-bank-956b8f03) The failed bank was reportedly without a risk management officer for months before it collapsed.

[moka]

The chief executive officer of failed Silicon Valley Bank, Greg Becker, is no longer on the board of directors at the Federal Reserve Bank of San Francisco.
Becker's departure was effective on Friday, a spokesperson for the Federal Reserve said. Earlier on Friday, Silicon Valley Bank was closed by regulators (https://www.reuters.com/business/finance/global-markets-banks-wrapup-1-2023-03-10/).

https://www.reuters.com/markets/us/ceo-failed-silicon-valley-bank-no-longer-director-sf-fed-2023-03-10/

[moka]

https://www.theguardian.com/business/2023/mar/11/silicon-valley-bank-weaken-risk-regulations-svb

(https://www.theguardian.com/business/2023/mar/11/silicon-valley-bank-weaken-risk-regulations-svb)Silicon Valley Bank chief pressed Congress to weaken risk regulations.

CEO Greg Becker personally led the bank’s half-million-dollar push to reduce scrutiny of his institution – and lawmakers obliged.

In 2015, SVB President Greg Becker submitted a statement to a Senate panel pushing legislators to exempt more banks – including his own – from new regulations passed in the wake of the 2008 financial crisis. Despite warnings from some senators, Becker’s lobbying effort was ultimately successful.

Touting “SVB’s deep understanding of the markets it serves, our strong risk management practices”, Becker argued that his bank would soon reach $50bn in assets, which under the law would trigger “enhanced prudential standards”, including more stringent regulations, stress tests and capital requirements for his and other similarly sized banks.

Becker insisted that $250bn was a more appropriate threshold. ..… legislation (https://www.congress.gov/bill/115th-congress/senate-bill/2155/text?ref=the-lever) ultimately signed by President Donald Trump increased the regulatory threshold for stronger stress tests to $250bn.

In 2021, SVB passed the threshold of $100bn under management, triggering some additional scrutiny as a Category IV bank but remaining exempt from the more frequent and detailed analyses that regulators perform to determine whether banks above $250bn of assets have sufficient capital to withstand a crisis.

A press release on Friday from the Federal Deposit Insurance Corporation noted that as of December 2022, SVB had $209bn in assets under management – keeping it below the $250bn threshold for which the bank had lobbied.

SVB is the biggest bank to collapse since Washington Mutual failed in 2008 during the financial crisis, and the second-biggest bank failure in US history.

In 2019, Becker was elected to serve on the board of directors at the Federal Reserve Bank of San Francisco. Becker left the board on Friday.

[Valuegrowth]

https://www.news.com.au/finance/business/banking/us-signature-bank-shut-down-by-regulators-days-after-svb-collapses/news-story/a31b2ad2158151bf91acf811da1be7e6

[Valuegrowth]

https://www.youtube.com/watch?v=vSZcPvp7NVU

[Waltzing]

First Citizen bank just got a great deal and look at the share price rise.

[SBQ]

First Citizen bank just got a great deal and look at the share price rise.

Only because SIVB share holders had to take 100% of the loss.

[Recaster]

Peter Schiff's view on the stress tests of SVB:


https://www.youtube.com/watch?v=44mOUGW0MSc

[SBQ]

Peter Schiff's view on the stress tests of SVB:


https://www.youtube.com/watch?v=44mOUGW0MSc

Schiff is spewing the same rhetoric since the GFC and he's been saying gold to $4000 forever. Sings the same tune but in short, you will under-perform if you follow his advice. What I don't like about him is he only tells 1 side of the story.

[Crypto Crude]

Everything is predictive programming so they tell is in many different ways before it happens .. here it was told decades ago... I believe it's for clause of deny ability... ie... we told yah...

https://www.facebook.com/reel/174488425359968?s=yWDuG2&fs=e&mibextid=Nif5oz