Live blog:
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Olgac wrote:
socialism agitator wrote:
This is the most rugged individualist libertarian "bank" in the US. It successfully lobbied for less regulation, and got wrecked by a bank run by venture capitalist firms who wanted their (uninsured by the FDC) cash back.
Your ability to see any news story and instantly believe it is further proof of your worldview is incredible.
Nice spin to further your liberal socialist Venezuelan-type agenda. This destruction of American banking is all on Biden and the Dems who ridicule investment and savings, while handing out checks to low-end borrowers who manipulate the lending process.
Dude, get therapy
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Ghost of Igloi wrote:
Live blog:An auction that starts and ends so quickly ? There is some element of BS to the auction story. How can anyone perform a comprehensive analysis in a snap on a failed institution with the intent of determining its value and then deciding on the amount to bid.
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Ghost of Igloi wrote:
Live blog:Yep. As predicted, the Biden administration has weaponized the FDIC agents to loot American banks and give the spoils to the woke protected classes who despise believe savings is systemic oppression of their socialist lifestyles.
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Olgac wrote:
socialism agitator wrote:
This is the most rugged individualist libertarian "bank" in the US. It successfully lobbied for less regulation, and got wrecked by a bank run by venture capitalist firms who wanted their (uninsured by the FDC) cash back.
Your ability to see any news story and instantly believe it is further proof of your worldview is incredible.
Nice spin to further your liberal socialist Venezuelan-type agenda. This destruction of American banking is all on Biden and the Dems who ridicule investment and savings, while handing out checks to low-end borrowers who manipulate the lending process.
Biden and the Dems do not either of those things no matter how angry you get about it. Good to see someone sticking up for the plucky venture capitalists and industrious virtual middlemen of Silicon Valley.
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Banking is inherently racist.
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Nancy R. wrote:
Banking is inherently racist.
Except at SVB. 😹
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Vivek has it right. And hopefully Biden/Yellen stick to no bailout.
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Politics has nothing to do with the SIVB collapse. Venture Capital is a destructive industry to bank. The bank had a mere 37,000 depositors, all of who relied on new cash from new issues of stock.
When the issuances stopped due to a bear market, the demand deposit balances at the bank plummeted. The bank had to sell assets to meet redemptions and since interest rates went up, they book a capital loss that wiped out their capital.
It doesn’t help that the vast majority of the depositors were over the $250,000 FDIC limit. They also all know each other. No wonder they ran for the hills.
Lesson: own a bank with a diversified deposit base.
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tlm1959 wrote:
It doesn’t help that the vast majority of the depositors were over the $250,000 FDIC limit. They also all know each other. No wonder they ran for the hills.
This is the part I find most incredible. How lazy/dumb were these startup depositors who exceeded the FDIC limits. I've worked in the finance department of several organizations and being cognizant of FDIC limits is the most basic principle to adhere to.
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long distance dedication wrote:
tlm1959 wrote:
It doesn’t help that the vast majority of the depositors were over the $250,000 FDIC limit. They also all know each other. No wonder they ran for the hills.
This is the part I find most incredible. How lazy/dumb were these startup depositors who exceeded the FDIC limits. I've worked in the finance department of several organizations and being cognizant of FDIC limits is the most basic principle to adhere to.
You believe that companies avoid having more than $250k in any single bank account?
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cpmfa wrote:
long distance dedication wrote:
This is the part I find most incredible. How lazy/dumb were these startup depositors who exceeded the FDIC limits. I've worked in the finance department of several organizations and being cognizant of FDIC limits is the most basic principle to adhere to.
You believe that companies avoid having more than $250k in any single bank account?
Risk relative to wealth. For a company with billions in assets, having 10 million in a single account is no big deal. For most of these startups it was their lifeline.
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Olgac wrote:
All thanks to Biden and his woke banking policies, now even our banking system is failing just like our infrastructure is failing under Biden. Trains crash every day, but Dems don't care. All they care about is ruining more banks.
I was unaware there was such a thing as a woke banking policy. Please list these woke policies so that we all may all benefit from your expertise.
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I'm with Vivek. The guys with over $250K in SVB are Capitalists and they F'd up. No bailouts!
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Yessiree Bob wrote:
Olgac wrote:
All thanks to Biden and his woke banking policies, now even our banking system is failing just like our infrastructure is failing under Biden. Trains crash every day, but Dems don't care. All they care about is ruining more banks.
I was unaware there was such a thing as a woke banking policy. Please list these woke policies so that we all may all benefit from your expertise.
Here you go:
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long distance dedication wrote:
tlm1959 wrote:
It doesn’t help that the vast majority of the depositors were over the $250,000 FDIC limit. They also all know each other. No wonder they ran for the hills.
This is the part I find most incredible. How lazy/dumb were these startup depositors who exceeded the FDIC limits. I've worked in the finance department of several organizations and being cognizant of FDIC limits is the most basic principle to adhere to.
It's not that simple. Even small/medium-sized companies have single *transactions* that exceed the FDIC limits.
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Academic Discussion wrote:
Yessiree Bob wrote:
I was unaware there was such a thing as a woke banking policy. Please list these woke policies so that we all may all benefit from your expertise.
Here you go:
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Academic Discussion wrote:
Academic Discussion wrote:
Here you go:
So, they may have had dress down Fridays as well,
This is not why they collapsed, as much as you would like to think so.
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sayer of what must be said: wrote:
Academic Discussion wrote:
So, they may have had dress down Fridays as well,
This is not why they collapsed, as much as you would like to think so.
Didn't say it was. He asked for examples of woke banking so I provided them.
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To be fair to Jay, SIVB did not have a Chief Risk Officer for most of 2022. The old CRO resigned early last year and Jay stepped in January. This was revealed on March 8. One wonders if the old risk officer knew something. She certainly didn't like all the realized and unrealized losses (in the Held to Maturity portfolio) that she was seeing. It had $16 billion of HTM marks (unrealized) in September, far exceeding its $11.8 billion of tangible equity. One can argue that SIVB was technically insolvent in September. Most banks ride this HTM mark issue out and as bonds mature, they can be reinvested in higher rates. SIVB wasn't given the time due to the demand deposit withdrawals.
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