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Silicon Valley Bank Shares Halted After Plunge Deepens UPDATE: The Silicon Valley Bank has been shut down by regulators

www.dailymail.co.uk

Bank shares down 74% in pre-market trading despite Biden's backing

Trading was temporarily halted in dozens of regional banks this morning as shares fell by up to 75 percent when the market opened after Joe Biden claimed 'US banking is safe.'
www.dailymail.co.uk www.dailymail.co.uk

Three more banks frozen.

Cliff notes…
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RUTGERS95 said:
no, it's political and it's not systematic
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Respectfully disagree... It is most-definitely political, but I'm very concerned by the systemic risk resulting from the impact of rapidly rising interest rates on bonds. Its being reported there are at least 20 large banks with exposures similar to SVB... Yikes...!
 
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So, SVB simply had Zero reserves as allowed by the 2020 Fed ruling, and a small run on the bank was enough to collapse it?
If so, this is probably every bank in America right now. Car loans on sub-prime borrows are at their highest level of late payments > 60 days in history right now.
 
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Shooter McGavin said:
www.dailymail.co.uk

Bank shares down 74% in pre-market trading despite Biden's backing

Trading was temporarily halted in dozens of regional banks this morning as shares fell by up to 75 percent when the market opened after Joe Biden claimed 'US banking is safe.'
www.dailymail.co.uk www.dailymail.co.uk
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The member's of the US Congress made out like bandit's on this one. Their brokers had them in the best positions possible long before the collapse.
Their net worth does not increase that much in a few years on just their salary.
 
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E. Bryant said:
The current crisis will be another one with bipartisan roots that each party will attempt to exploit. Really looking forward to the hypocritical finger-pointing phase, which will be used as a distraction from the looting-the-Treasury phase.
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I was curious and decided to look up that bill and the final votes. Yeah, I guess it was technically bipartisan, but it looks a bit more lopsided than folks here want to admit:


Final House Votes
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Hey, there's one R who voted Nay!

Final Senate Votes
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I don't see any R's voting Nay
 
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www.thegatewaypundit.com

Credit Suisse Shares Tumble to a New Record Low After Collapse of SVB and Signature Bank | The Gateway Pundit | by Cristina Laila

Credit Suisse shares tumbled to a new record low on Monday after Silicon Valley Bank and Signature Bank collapsed.
www.thegatewaypundit.com www.thegatewaypundit.com

Going international...



Credit Suisse CSGN, -8.73% CS, -4.70% has lost money for five straight quarters and says it’s expecting to post a loss before tax this year. It’s undergoing a big transformation after losing billions lending to the Archegos family office and having to freeze $10 billion worth of funds tied to Greensil Capital. Wealthy clients pulled out about $100 billion from Credit Suisse in the fourth quarter.
 
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plong said:
Respectfully disagree... It is most-definitely political, but I'm very concerned by the systemic risk resulting from the impact of rapidly rising interest rates on bonds. Its being reported there are at least 20 large banks with exposures similar to SVB... Yikes...!
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This is my concern.
 
Even with the failure over the past several days of Silicon Valley Bank and Signature Bank that forced regulators to spring into action, markets still expect the Fed to keep up its inflation-fighting efforts. Suring bond yields played into the demise in particular of SVB as the bank faced some $16 billion in unrealized losses from held-to-maturity Treasurys that hold lost principal value due to higher rates.
Still, the dramatic events may not even technically qualify as something breaking in the collective Wall Street mind.
“No, it doesn’t,” said Quincy Krosby, chief global strategist at LPL Financial. “Is this enough to qualify as the kind of break that would have the Fed pivot? The market overall doesn’t think so.”

www.cnbc.com

Something broke, but the Fed is still expected to go through with rate hikes

Markets still expect the Fed to keep up its inflation-fighting efforts, despite high-profile bank failures that have rattled the financial system.
www.cnbc.com www.cnbc.com
 
Didn't Bush back in 2008 after that fiasco bailout, have some sort of corporate financial disclosure designed that the Federal Reserve or Treasury was to monitor these financial institutions so this would not occur again? Fast forward same shit different sellout in the White House!
The rich keep fucking up and making the poor even poorer, but when all is said and done they are still using a silver-spoon, while I'm hitting a Spam can with my prison spork, maybe crime pays after all.
 
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IronSkillet said:
The rich keep fucking up and making the poor even poorer, but when all is said and done they are still using a silver-spoon, while I'm hitting a Spam can with my prison spork, maybe crime pays after all.
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It actually worse than that, they will make more money off of these losses and the tax payer will bail them out. The thing is if you have the funds you too could start to become rich. Unfortunately, for me it came to early and I am still paying off some debt. Will be done in September time frame, but that's too late to save enough to take advantage of the upcoming recession.
 
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Ok I haven't read the two middle pages but here is what I have heard as of now(pre regulators jumping into the books). This bank was not the typical institution. Many large account holders (that did not diversify amongst many banks). SVB top loaded somewhere around 70% in treasury notes(this is not a bad thing as it is income producing investment). Those were between 1 and 2% return. When Feds raised interest rates those same treasury notes now pay around 4.5%. The problem for SVB was they couldn't find a place to loan out much of their excess capital from the Feds printing frenzy during covid. SVB like many banks were cash heavy. Supposedly a group(various large deposit holders) moved their funds out of SVB. <Rumors around banking world...... Those funds are very secure if everything is on the up and up. Their problems started trying to unload long term investments(in our own federal debt). They were trying to unload those 1.5% Tnotes and got hammered because you can buy new ones for 4.5% return. It was a run on the bank and it can be done anywhere at any bank at any time. My info could be wrong but it sounds like the stock holders will get fucked and the bank will be sold off to other banks. I think the Feds have over 1 trillion in fees from banks to pay for this.
 
stemikel said:
Wondering how contagious this is going to be.
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Like the bubonic plague it will spread. It's only just begun.
Short-bus said:
There were 3 other bank stocks who's stocks were halted in trading this morning. Silvergate Capital, Signature Bank, and First Republic Bank.

Branden
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On Friday (March 10) it was announced that collectively JP Morgue, Wells Fargo, BoA and Morgue-Chase Stanley lost $55 billion.
Short-bus said:
After the 2008 crash, lawmakers passed a bill that would prohibit US taxpayer money from being used to bail out banks in the future. Odds are the next bank will do a bail-in if FDIC is unable to find a buyer for the remaining assets. FDIC apparently only has enough capital to cover roughly 4% of all insured deposits in the US (about $800B). So a bank here or there goes down, and they can manage it, liquidate it, and only have a fraction of the insured deposits actually have to be covered in the end. If SVB going down causes another decent sized bank or 2 to go down soon, then it could get dicey. Check out the bail-in's in Cyprus, where they took 56% of all the deposits over the insured 150K euros, and 6% of insured deposits (balances under 150k euros)...from EVERYONE in order to save the bank from a complete, and total collapse. What they did on the deposits they took, was they issued new bank stock (worthless stock in a failing bank) in the amount they took. When they reopened trading on those stocks, the price got pushed down to .25 cents a share from folks trying to liquidate that stock and recover their cash. It stayed around 25 to 40 cents for a few years until it was withdrawn from the markets, and a few days later, new stock was issued that was priced at over $100/share. I didn't spend a ton of time looking into it, I can only assume they were bought, but who knows.

What i'm saying, is the US govt will no longer be in the business of bailing out private banks, there isn't too big to fail anymore....well at least until they quickly repeal that law in order to bail out private industry again.

Branden
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Actually, Dodd-Frank Act redefined YOU the depositor as an unsecured creditor who stands second in line for the bank's assets. What are the bank's assets? Your deposit! It doesn't belong to you but to the bank and the bank may pay its primary creditors (generally other banks) first. So, expect a haircut/bail-in ala Cyprus (forgot that happen a decade earlier, didn't you?) or Argentina (where the banks closed and then depositors were rationed every week as to the amount they may withdraw).

You are correct in that the FDIC has only $25 billion with which too cover all the banks its ensures (it's trillions). Ultimately WE the people are the ones fleeced as the Treasury prints notes to generate the $$$ to cover the losses for the FDIC.

How you save determines whethered you saved at all. There's a video at this link and you should watch it with your significant other and then decide what to do: USA Watchdog interviews Bill Holter. Too lazy to watch a 55 min video? What does Gregory Mannarino (Trader's Choice) always say and has been saying. Last, if you don't know the difference between money and currency, it's not your fault as the school/college/university never taught ANY of us. However, if you don't know, you'll learn the hard way.
 
SilentStalkr said:
Unfortunately, that’s exactly the way the market works. People get screwed all the time. Close a Biz, file bankruptcy, open same biz under a different name the next day and all is good. It’s fucked up. No repercussions to anyone except the stockholders get screwed.



Curious where you guys would park $500 mil.
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On "Black 27"
 
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SilentStalkr said:
Unfortunately, that’s exactly the way the market works. People get screwed all the time. Close a Biz, file bankruptcy, open same biz under a different name the next day and all is good. It’s fucked up. No repercussions to anyone except the stockholders get screwed.



Curious where you guys would park $500 mil.
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I would not stash it beneath a mattress b/c of brrrrrrrrr! which devalues your funds everytime the Fed punches its enter key on their computer. I would find an undervalued aaset that has no counter-party risk.

If you must buy land, I prefer farmland over ranch land and ranch land over rental property. Read Benjamin Roth's The Great Depression: A Diary where Roth records rental property owners got stiffed by their tenants, couldn't make their mortgage payments and got foreclosed on. It took decades for real property to recover its previous value too. So farm land that is worked so it produced revenue is the best. Not glamourous, but food never falls out of fashion.

BTW, I'm not moving my $500 billion Zimbabwe dollars anywhere soon. No need to worry about it b/c it won't buy a stick of gum at Wallyworld.
 
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