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@catch22- As you would know from our conversations over the years, I have no tolerance for government rescue of institutions or businesses that get into trouble due to stupidity or greed.
But it's painfully obvious that in today's financial environ…
I didn't realize that such an option existed. But I'll tell you straight out: I wouldn't trust ANY private operation in the long run. That's just transferring the risk of loss from a poorly managed bank to a possibly poorly managed private concern. …
Well here's what I'm seeing: It's just a fact that in today's financial arena there are certain types of businesses that have a need to maintain very large amounts of cash which is readily available for deployment on short notice.
As far as I can s…
Hi @catch22- I believe that he's referring to a "special assessment" that the FDIC will make on the FDIC covered banks, in addition to the normal ongoing assessments. And he's probably right- the banks will somehow make sure that we depositors pay f…
"Where does the government get all this money to cover depositors not covered by FDIC insurance?"
From what I've read so far, from the FDIC, which will then replace at least some of that expenditure by a special assessment (ie: in addition to the r…
Yes, not much info re Silvergate. Did find this, though:
How Silvergate’s Crypto Collapse Differed From Silicon Valley Bank’s: No Bailout
and this:
Silvergate Capital Corporation announced the immediate winding down of the bank’s operations along…
"more likely the previous decline before the SVB news had to do with rate hikes and Wells Fargo layoffs:"
You think maybe Wells Fargo laid off the guys who just said to "buy Signature Bank, New York", which was closed today by its state chartering …
Echoes from Europe...
Excerpts from an article in The Guardian:
The UK government is scrambling to secure an emergency deal to protect Britain’s tech and life sciences sectors from major losses after the collapse of Silicon Valley Bank (SVB), as fi…
I just received this from First Republic Bank:
To Our Valued Clients,
In light of recent industry events, the last few days have caused uncertainty in the financial markets. We want to take a moment to reinforce the safety and stability of First R…
More... from the WSJ:
Updated March 12, 2023 4:09 pm ET
In addition, regulators are considering more extraordinary measures such as deeming the failure of SVB to be a systemic risk to the financial system, people familiar with the matter said. Tha…
Janet Yellen: NPR:
Janet Yellen says the federal government won't bail out Silicon Valley Bank, will bail out depositors...
March 12, 2023, 2:08 PM ET
Treasury Secretary Janet Yellen says the U.S. government won't bail out Silicon Valley Bank a…
Well, after hearing from the MFO community, I've changed the title of this post, as well as my mind. The demise of SVB is multilayered and many faceted, and evidently the commonly encountered "greed and stupidity" factors were a major factor after a…
Well, I'm not the only one who questions the present banking oversight/systems failure situation.
Edited excerpts from a current Wall Street Journal article:
Silicon Valley Bank’s failure boils down to a simple misstep: It grew too fast using borro…
I'm not in any way receptive to the government rescuing businesses who get into trouble because of their own stupidity or greed. But I'm not getting any answers to my fundamental question: What options exist for those businesses who need to maintain…
You are really not addressing my fundamental question, which is not primarily about SVB:
OK, I'm a business owner: why is it my responsibility to protect my cash reserves against government actions- ie, the Fed?
And if it is my responsibility, ex…
@yogibearbull- Yes sir, I do understand the situation. I guess what 'm really asking here is this: The US, and to some extent the economies of other major "western" developed nations, have evolved so that certain types of businesses, some of which a…
@msf, @yogibearbull-
I'm still hoping for some commentary by the MFO heavy-hitters on my real question regarding this:
The FDIC is expected to sell the bank’s remaining assets and use the proceeds to "partially" pay the uninsured depositors. Those…
Hi Mike- well, from what I've gathered so far, the main problem at SVB was a loss of confidence by major depositors, who had chosen to leave uninsured (more than 250k... in fact, much more than 250k) money at SVB. So a number of those large deposito…
We subscribe to the print (and web) versions of: The Atlantic, The Economist, The Wall Street Journal, and The San Francisco Chronicle. Additionally we subscribe and pay for web versions of The Washington Post and The New York Times. We also support…
"By the way, the death of reliable, nuanced trustworthy local news has grave implications for the politics of this nation as other than the intellectual hubs in large primarily coastal cities, many people get much of their information from local new…
@LarryB- There's this, from the WSJ:
Following are selected excerpts from a current article in the Wall Street Journal-
First Republic shares fell 52% in early trading before storming back to near the previous day’s closing level, only to then fin…
Following is an excerpt from a current article in the San Francisco Chronicle, a purported* SF newspaper:
A new bank, the National Bank of Santa Clara, has been created by the Federal Deposit Insurance Corp. to hold the deposits and assets of Silico…
Hopefully we all know or understand that holding bonds or CDs of various types can easily lead to a capital loss if we are required to sell those types of instruments before maturity, and if their value has meanwhile deteriorated due to overall fina…
Pretty sloppy for a guy who is always not only on top of everything, but actually well ahead of everything... he didn't bother to check his link response, which seems pretty odd considering that he has such superior financial systems. Makes you wond…
