Silicon Valley Bank SVB is shut down by regulators - withdraw ASAP
Goto page 1, 2  Next
 
Post new topic    LakersGround.net Forum Index -> Off Topic Reply to topic
View previous topic :: View next topic  
Author Message
ContagiousInspiration
Franchise Player
Franchise Player


Joined: 07 May 2014
Posts: 13823
Location: Boulder ;)

PostPosted: Fri Mar 10, 2023 12:09 pm    Post subject: Silicon Valley Bank SVB is shut down by regulators - withdraw ASAP

affecting Rippling Payroll currently
https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html
MARKETS
Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis
PUBLISHED FRI, MAR 10 202311:46 AM ESTUPDATED 1 MIN AGO

Quote:
The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning.
SVB’s branch offices will also reopen at that time, under the control of the regulator.
The FDIC’s standard insurance covers up to $250,000 per depositor, per bank, for each account ownership category.


Last edited by ContagiousInspiration on Fri Mar 10, 2023 1:01 pm; edited 2 times in total
Back to top
View user's profile Send private message Reply with quote
ContagiousInspiration
Franchise Player
Franchise Player


Joined: 07 May 2014
Posts: 13823
Location: Boulder ;)

PostPosted: Fri Mar 10, 2023 12:19 pm    Post subject:

209 Billion in Assets

Is this the tip of the iceberg somwhere?
Back to top
View user's profile Send private message Reply with quote
ContagiousInspiration
Franchise Player
Franchise Player


Joined: 07 May 2014
Posts: 13823
Location: Boulder ;)

PostPosted: Fri Mar 10, 2023 1:00 pm    Post subject:

https://www.reddit.com/r/wallstreetbets/comments/11nw54y/973_of_svb_deposits_arent_fdic_insured/
97.3% of SVB deposits aren't FDIC insured
Back to top
View user's profile Send private message Reply with quote
Basketball Fan
Franchise Player
Franchise Player


Joined: 03 Feb 2004
Posts: 24828

PostPosted: Fri Mar 10, 2023 5:15 pm    Post subject:

ContagiousInspiration wrote:
209 Billion in Assets

Is this the tip of the iceberg somwhere?



Yep think depression.
Back to top
View user's profile Send private message Reply with quote
lakersken80
Retired Number
Retired Number


Joined: 12 Aug 2009
Posts: 38948

PostPosted: Fri Mar 10, 2023 7:05 pm    Post subject:

Well one major company some people may have heard of (Roku) may have just lost $487 million in cash....
https://www.engadget.com/roku-says-it-could-lose-25-percent-of-its-cash-after-silicon-valley-bank-fails-000615481.html
Back to top
View user's profile Send private message Reply with quote
lakersken80
Retired Number
Retired Number


Joined: 12 Aug 2009
Posts: 38948

PostPosted: Sun Mar 12, 2023 4:30 pm    Post subject:

Got bailed out. I guess the Federal government didn't want things to snowball.
Back to top
View user's profile Send private message Reply with quote
LakersRGolden
Star Player
Star Player


Joined: 13 Jan 2002
Posts: 7964
Location: Lake Forest

PostPosted: Sun Mar 12, 2023 8:02 pm    Post subject:

Signature Bank goes down.
Back to top
View user's profile Send private message Reply with quote
I Bleed P&G
Starting Rotation
Starting Rotation


Joined: 01 Dec 2015
Posts: 888

PostPosted: Sun Mar 12, 2023 8:24 pm    Post subject:

LakersRGolden wrote:
Signature Bank goes down.

& Silvergate
Back to top
View user's profile Send private message Reply with quote
ContagiousInspiration
Franchise Player
Franchise Player


Joined: 07 May 2014
Posts: 13823
Location: Boulder ;)

PostPosted: Sun Mar 12, 2023 8:29 pm    Post subject:

Who is making the withdrawls and is this a coordinated attack on our system?
Saw Peter Thiel may have been involved in the last one

Is this a Trump long game plan.. He was the one who killed regulations
Back to top
View user's profile Send private message Reply with quote
LongBeachPoly
Franchise Player
Franchise Player


Joined: 14 Jul 2012
Posts: 16265

PostPosted: Sun Mar 12, 2023 8:41 pm    Post subject:

ContagiousInspiration wrote:
Who is making the withdrawls and is this a coordinated attack on our system?
Saw Peter Thiel may have been involved in the last one

Is this a Trump long game plan.. He was the one who killed regulations


Businesses are making the withdrawals since the money wasn't insured, so they wanted to take all their money out before the collapse.
Back to top
View user's profile Send private message Reply with quote
Palin
Star Player
Star Player


Joined: 26 Feb 2008
Posts: 1828

PostPosted: Mon Mar 13, 2023 5:11 am    Post subject:

So Biden just blamed Trump, only 3 min statement and didn't take questions.

Yeah it seems bad.
Back to top
View user's profile Send private message Reply with quote
DaMuleRules
Retired Number
Retired Number


Joined: 10 Dec 2006
Posts: 52738
Location: Making a safety stop at 15 feet.

PostPosted: Mon Mar 13, 2023 9:00 am    Post subject:

Palin wrote:
So Biden just blamed Trump, only 3 min statement and didn't take questions.

Yeah it seems bad.


Because that administration eliminated many of the regulations intended to prevent this kind of event.
_________________
You thought God was an architect, now you know
He’s something like a pipe bomb ready to blow
And everything you built that’s all for show
goes up in flames
In 24 frames


Jason Isbell

Man, do those lyrics resonate right now
Back to top
View user's profile Send private message Reply with quote
lakersken80
Retired Number
Retired Number


Joined: 12 Aug 2009
Posts: 38948

PostPosted: Mon Mar 13, 2023 10:02 am    Post subject:

ContagiousInspiration wrote:
Who is making the withdrawls and is this a coordinated attack on our system?
Saw Peter Thiel may have been involved in the last one

Is this a Trump long game plan.. He was the one who killed regulations


You have it the other way around. Companies or people don't go to rush to take out their deposits unless the bank is over leveraged.
Back to top
View user's profile Send private message Reply with quote
ContagiousInspiration
Franchise Player
Franchise Player


Joined: 07 May 2014
Posts: 13823
Location: Boulder ;)

PostPosted: Mon Mar 13, 2023 11:01 am    Post subject:

LongBeachPoly wrote:
ContagiousInspiration wrote:
Who is making the withdrawls and is this a coordinated attack on our system?
Saw Peter Thiel may have been involved in the last one

Is this a Trump long game plan.. He was the one who killed regulations


Businesses are making the withdrawals since the money wasn't insured, so they wanted to take all their money out before the collapse.


This wasn't everyday businesses withdrawing money to deal with normal stuff.

From a reddit post

Quote:
There is even more to this story. It's an illustration of how absurdly tight-knit Silicon Valley is and the disproportionate power the rich have.

You have the Paypal Mafia, Facebook's early employees, Google's early employees, etc.

Peter Thiel's Founders Fund became uneasy and advised every company they invested in to withdraw their funds. Union Square Ventures and Coatue Management did the same around the same time. Because venture capitalists are lemmings, the smaller firms mimicked the bigger firms. By the end of Thursday, hundreds (?) of VC firms and their portfolio companies tried to withdraw $42 billion in one (bleep) day.

*Virtually no bank survives a bank run.
Back to top
View user's profile Send private message Reply with quote
LongBeachPoly
Franchise Player
Franchise Player


Joined: 14 Jul 2012
Posts: 16265

PostPosted: Mon Mar 13, 2023 11:16 am    Post subject:

ContagiousInspiration wrote:
LongBeachPoly wrote:
ContagiousInspiration wrote:
Who is making the withdrawls and is this a coordinated attack on our system?
Saw Peter Thiel may have been involved in the last one

Is this a Trump long game plan.. He was the one who killed regulations


Businesses are making the withdrawals since the money wasn't insured, so they wanted to take all their money out before the collapse.


This wasn't everyday businesses withdrawing money to deal with normal stuff.

From a reddit post

Quote:
There is even more to this story. It's an illustration of how absurdly tight-knit Silicon Valley is and the disproportionate power the rich have.

You have the Paypal Mafia, Facebook's early employees, Google's early employees, etc.

Peter Thiel's Founders Fund became uneasy and advised every company they invested in to withdraw their funds. Union Square Ventures and Coatue Management did the same around the same time. Because venture capitalists are lemmings, the smaller firms mimicked the bigger firms. By the end of Thursday, hundreds (?) of VC firms and their portfolio companies tried to withdraw $42 billion in one (bleep) day.

*Virtually no bank survives a bank run.



Understood. Bank runs are panic moves. But the panic is due to all their deposits being unsecured.

It's easier to say, don't panic when it's not your funds that are unsecured...

When 97% of your deposits are unsecured, you're very liable to panic driven bank runs. That's just the nature of the business you're in.
Back to top
View user's profile Send private message Reply with quote
ContagiousInspiration
Franchise Player
Franchise Player


Joined: 07 May 2014
Posts: 13823
Location: Boulder ;)

PostPosted: Mon Mar 13, 2023 11:27 am    Post subject:

From everything I've read they would have survived because their assets/bonds enough to cover everything but not fast enough to cover a run on the bank that wasn't entirely justified and was possibly malicious?
Back to top
View user's profile Send private message Reply with quote
LongBeachPoly
Franchise Player
Franchise Player


Joined: 14 Jul 2012
Posts: 16265

PostPosted: Mon Mar 13, 2023 11:45 am    Post subject:

^

From what I read, they were selling off assets at a loss to cover clients pulling out money.

1) So, it started with clients already withdrawing money:

Quote:
...some Silicon Valley Bank clients started pulling money out to meet their liquidity needs. This culminated in Silicon Valley Bank looking for ways this week to meet its customers' withdrawals.


2) Then on Wednesday, they sold $21B in securities at a $1.8B loss to cover the withdrawals:

Quote:
To fund the redemptions, Silicon Valley Bank sold on Wednesday a $21 billion bond portfolio consisting mostly of U.S. Treasuries. The portfolio was yielding it an average 1.79%, far below the current 10-year Treasury yield of around 3.9%. This forced SVB to recognize a $1.8 billion loss, which it needed to fill through a capital raise.


3) Then on Thursday, they announced they'd raise capital (to cover this loss) by selling shares of equity. This caused their stock to plunge:

Quote:
SVB announced on Thursday it would sell $2.25 billion in common equity and preferred convertible stock to fill its funding hole. Its shares ended trading on the day down 60%, as investors fretted that the deposit withdrawals may push it to raise even more capital.


4) Which lead to the bank run:

Quote:
Some SVB clients pulled their money from the bank on the advice of venture capital firms such as Peter Thiel's Future Fund, Reuters reported. This spooked investors such as General Atlantic that SVB had lined up for the stock sale, and the capital raising effort collapsed late on Thursday.

https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/



Is this malicious? I mean, everyone is sitting on unsecured deposits. I don't know how secure clients should feel when others are currently withdrawing and the bank is selling assets at a loss to meet these withdrawals while its stock is dropping by 60%.

I mean, if we're going to blame all those who pulled out on Thursday, why not blame the ones who started pulling out before last week which lead to SVB having to sell $21B in assets at a loss?

If you think about it, $21B is half of $42B. So, there was already a bank run of $21B before Wednesday.
Back to top
View user's profile Send private message Reply with quote
ContagiousInspiration
Franchise Player
Franchise Player


Joined: 07 May 2014
Posts: 13823
Location: Boulder ;)

PostPosted: Mon Mar 13, 2023 1:07 pm    Post subject:

Thank you Very much for all of that. Takes so many levels of research to get past the fud propaganda. Doesn't look malicious with all the data you provided. Thanks again.

If I saw my bank trying to cover debts by throwing away a billion dollars I'd pull it all out too
Back to top
View user's profile Send private message Reply with quote
DuncanIdaho
Franchise Player
Franchise Player


Joined: 26 Apr 2004
Posts: 17294
Location: In a no-ship

PostPosted: Mon Mar 13, 2023 2:02 pm    Post subject:

The whole thing goes back to all of the free money the Fed injected into the economy in early covid, the bank needing to do something with their deposits quadrupling during that timeframe, and then being in a really bad situation when the fed raised the interest rate. This was a Fed-created problem, and I'm glad it got solved before impacting the greater economy.

However, now that the FDIC is essentially saying it'll guarantee all deposits, there needs to be more regulations around what banks are allowed to invest deposits in. Should be like treasury bills only, or something similar?
Back to top
View user's profile Send private message Reply with quote
FernieBee
Star Player
Star Player


Joined: 17 Nov 2003
Posts: 8033
Location: 921SD

PostPosted: Mon Mar 13, 2023 6:31 pm    Post subject:

The Young Turks

(Silicon Valley Bank Paid Out Bonuses HOURS Before Collapsing & Lobbied For Years To Deregulate)

Quote:
The President of Silicon Valley Bank argued to exempt his bank from regulations. Ana Kasparian and Cenk Uygur discuss on The Young Turks.

_________________
Garvey, Lopes, Cey, Russell
Back to top
View user's profile Send private message Reply with quote
LongBeachPoly
Franchise Player
Franchise Player


Joined: 14 Jul 2012
Posts: 16265

PostPosted: Mon Mar 13, 2023 6:53 pm    Post subject:

^ I heard the bonuses were scheduled for that day. It wasn't a last minute decision.

Quote:
The Santa Clara, California-based bank has historically paid employee bonuses on the second Friday of March, said the people, who declined to be identified speaking about the awards. The payments were for work done in 2022 and had been in process days before the bank’s collapse, the sources said.


I think it's nothing shady going on as far as the bonuses.

Friday Mar 10 happened to be the 2nd Friday of March. Such a coincidence, but it lines up with what they've done in the past (if what they're saying is true).
Back to top
View user's profile Send private message Reply with quote
jonnybravo
Retired Number
Retired Number


Joined: 21 Sep 2007
Posts: 30863

PostPosted: Mon Mar 13, 2023 7:13 pm    Post subject:

LongBeachPoly wrote:
^ I heard the bonuses were scheduled for that day. It wasn't a last minute decision.

Quote:
The Santa Clara, California-based bank has historically paid employee bonuses on the second Friday of March, said the people, who declined to be identified speaking about the awards. The payments were for work done in 2022 and had been in process days before the bank’s collapse, the sources said.


I think it's nothing shady going on as far as the bonuses.

Friday Mar 10 happened to be the 2nd Friday of March. Such a coincidence, but it lines up with what they've done in the past (if what they're saying is true).


Yep.

There's absolutely ZERO rationale for the employees to not receive the bonuses that were due to them. Granted the timing made the optics look poorly but that's irrelevant. Just feels like another "a-ha! Gotcha" moment from the peanut gallery.
_________________
KOBE
Back to top
View user's profile Send private message Reply with quote
FernieBee
Star Player
Star Player


Joined: 17 Nov 2003
Posts: 8033
Location: 921SD

PostPosted: Mon Mar 13, 2023 8:37 pm    Post subject:

The Majority Report w/ Sam Seder

(Katie Porter Blames Bipartisan Deregulation For Silicon Valley Bank Turmoil)

Quote:
Katie Porter posts a video to Twitter Explaining how Republican and Democratic members of Congress who helped passed rollbacks of Dodd-Frank regulations are responsible for the turmoil at the Silicon Valley Bank.

_________________
Garvey, Lopes, Cey, Russell
Back to top
View user's profile Send private message Reply with quote
FernieBee
Star Player
Star Player


Joined: 17 Nov 2003
Posts: 8033
Location: 921SD

PostPosted: Mon Mar 13, 2023 8:45 pm    Post subject:

MSNBC

(LA Times columnist on the hypocrisy of Silicon Valley ‘libertarians’)

Quote:
The Los Angeles Times’ business columnist Michael Hiltzik joins MSNBC’s Lawrence O’Donnell to discuss the lessons we can learn from the recent bank failures and why the same people who are against student debt relief are now asking the government to “save them.”

_________________
Garvey, Lopes, Cey, Russell
Back to top
View user's profile Send private message Reply with quote
jonnybravo
Retired Number
Retired Number


Joined: 21 Sep 2007
Posts: 30863

PostPosted: Mon Mar 13, 2023 8:50 pm    Post subject:

I'll be honest...before this happened, I didn't even know there were banks that weren't FDIC insured.
_________________
KOBE
Back to top
View user's profile Send private message Reply with quote
Display posts from previous:   
Post new topic    LakersGround.net Forum Index -> Off Topic All times are GMT - 8 Hours
Goto page 1, 2  Next
Page 1 of 2
Jump to:  

 
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum






Graphics by uberzev
© 1995-2018 LakersGround.net. All Rights Reserved. Privacy Policy. Terms of Use.
LakersGround is an unofficial news source serving the fan community since 1995.
We are in no way associated with the Los Angeles Lakers or the National Basketball Association.


Powered by phpBB